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EXPD vs LUV

EXPD
Expeditors International of Washington, Inc.
BEARISH
Price
$147.56
Market Cap
$19.62B
Sector
Industrials
AI Confidence
85%
LUV
Southwest Airlines Co.
NEUTRAL
Price
$40.92
Market Cap
$20.1B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
EXPD
24.8
LUV
53.14
Forward P/E
EXPD
22.82
LUV
8.95
P/B Ratio
EXPD
8.39
LUV
2.64
P/S Ratio
EXPD
1.77
LUV
0.72
EV/EBITDA
EXPD
17.09
LUV
13.29

Profitability

Gross Margin
EXPD
13.44%
LUV
22.04%
Operating Margin
EXPD
8.79%
LUV
5.09%
Profit Margin
EXPD
7.32%
LUV
1.57%
ROE
EXPD
35.43%
LUV
4.81%
ROA
EXPD
13.64%
LUV
0.95%

Growth

Revenue Growth
EXPD
-3.3%
LUV
7.4%
Earnings Growth
EXPD
-11.5%
LUV
50.8%

Financial Health

Debt/Equity
EXPD
0.24
LUV
0.75
Current Ratio
EXPD
1.81
LUV
0.52
Quick Ratio
EXPD
1.61
LUV
0.4

Dividends

Dividend Yield
EXPD
1.04%
LUV
1.76%
Payout Ratio
EXPD
25.88%
LUV
91.14%

AI Verdict

EXPD BEARISH

EXPD exhibits exceptional operational health with a Piotroski F-Score of 8/9 and a very conservative debt profile (Debt/Equity 0.24). However, the stock is severely overvalued, trading at $147.56—nearly 3x its Graham Number ($48.53) and 3.5x its Intrinsic Value ($41.65). This valuation gap is exacerbated by negative YoY revenue (-3.30%) and earnings growth (-11.50%), alongside a high PEG ratio of 3.80. With bearish insider selling and a 0/100 technical trend, the current price appears unsustainable relative to fundamental growth.

Strengths
Strong fundamental health (Piotroski F-Score 8/9)
High Return on Equity (ROE) of 35.43%
Very low leverage with Debt/Equity of 0.24
Risks
Extreme valuation premium over Graham and Intrinsic values
Negative revenue and earnings growth (YoY and Q/Q)
Bearish insider activity including sales by the CEO and General Counsel
LUV NEUTRAL

LUV presents a conflicted profile with a stable but mediocre Piotroski F-Score of 4/9 and a significant valuation gap, trading at $40.92 against a Graham Number of $16.38. While the Forward P/E (8.95) and PEG (0.22) suggest strong future earnings potential and a recovery trajectory, current liquidity is concerning with a Current Ratio of 0.52. The dividend is largely unsustainable given a 91.14% payout ratio. Overall, the stock is trading at a significant premium to its intrinsic value of $22.71, though analyst targets remain slightly bullish.

Strengths
Strong earnings growth (YoY +50.80%)
Very attractive PEG ratio (0.22) suggesting growth is undervalued
Significant compression in Forward P/E (8.95) compared to trailing P/E
Risks
Severe liquidity risk with a Current Ratio of 0.52 and Quick Ratio of 0.40
Unsustainable dividend payout ratio (91.14%)
Trading at a massive premium to Graham Number ($16.38) and Intrinsic Value ($22.71)

Compare Another Pair

EXPD vs LUV: Head-to-Head Comparison

This page compares Expeditors International of Washington, Inc. (EXPD) and Southwest Airlines Co. (LUV) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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