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ITT vs LUV

ITT
ITT Inc.
BEARISH
Price
$213.60
Market Cap
$19.19B
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
ITT
34.9
LUV
53.14
Forward P/E
ITT
23.76
LUV
8.95
P/B Ratio
ITT
4.49
LUV
2.64
P/S Ratio
ITT
4.87
LUV
0.72
EV/EBITDA
ITT
20.32
LUV
13.29

Profitability

Gross Margin
ITT
35.35%
LUV
22.04%
Operating Margin
ITT
18.85%
LUV
5.09%
Profit Margin
ITT
12.39%
LUV
1.57%
ROE
ITT
14.29%
LUV
4.81%
ROA
ITT
8.13%
LUV
0.95%

Growth

Revenue Growth
ITT
13.5%
LUV
7.4%
Earnings Growth
ITT
6.1%
LUV
50.8%

Financial Health

Debt/Equity
ITT
0.21
LUV
0.75
Current Ratio
ITT
2.58
LUV
0.52
Quick Ratio
ITT
1.96
LUV
0.4

Dividends

Dividend Yield
ITT
0.72%
LUV
1.76%
Payout Ratio
ITT
22.98%
LUV
91.14%

AI Verdict

ITT BEARISH

ITT exhibits a stable financial foundation with a Piotroski F-Score of 4/9 and an exceptionally strong balance sheet (Debt/Equity 0.21), yet it is severely overvalued. The current price of $213.60 represents a massive premium over both the Graham Number ($80.92) and the Intrinsic Value ($98.84). This valuation gap, combined with a bearish technical trend (10/100) and significant insider selling by the CEO, suggests the stock is priced for perfection and susceptible to a correction.

Strengths
Very low leverage with a Debt/Equity ratio of 0.21
Strong liquidity position evidenced by a Current Ratio of 2.58
Consistent long-term earnings track record over 25 quarters
Risks
Extreme valuation premium relative to defensive fair value (Graham Number)
Bearish insider sentiment with $12.14M in recent sales, including the CEO
Technical trend is heavily bearish (10/100)
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

ITT vs LUV: Head-to-Head Comparison

This page compares ITT Inc. (ITT) 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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