STOCK COMPARISON
Southwest Airlines vs Delta Air Lines: Fair Value & Quality
Both stocks run through our valuation models. Here is how Southwest Airlines (LUV) and Delta Air Lines (DAL) compare, as of Aug 8, 2026.
As of Aug 8, 2026, Fair Value Calculator sees Delta Air Lines as the more attractively valued of the two: Southwest Airlines trades at $46.94 versus a fair value of $22.85 (-51%), while Delta Air Lines trades at $91.98 versus $98.57 (+7%).
Southwest Airlines
LUV · USD · Industrials
-51%
upside to fair value
overvalued
Price$46.94
Fair Value$22.85
Quality59/100
Delta Air Lines
DAL · USD · Industrials
+7%
upside to fair value
fairly valued
Price$91.98
Fair Value$98.57
Quality57/100
Head-to-head numbers
Green value = the better side for that row (for valuation multiples: lower = cheaper).
Southwest AirlinesDelta Air Lines
Valuation
31.9×P/E (TTM)14.4×
0.81×P/S (TTM)0.81×
2.91×P/B2.67×
11.1×EV/EBITDA8.5×
0.35×PEG39.29×
1.5%Dividend yield0.9%
$0.72Dividend per share$0.78
Profitability
3%Net margin6%
5%Operating margin8%
10%Return on equity20%
2%Return on assets4%
Growth
13%Revenue growth (YoY)19%
5.6%Avg. growth/yr (3Y)7.8%
25.4%Avg. growth/yr (5Y)30.0%
Balance & size
0.57×Debt / equity0.60×
$23BMarket cap$55B
expensiveGrowth qualityhealthy
Delta Air Lines leads: 4 to 10 metric wins.
Dash = not meaningfully computable, for example with negative equity.
Quality in detail
The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.
Southwest Airlinesof which business quality 54 · market factors 66
Delta Air Linesof which business quality 48 · market factors 78
ProfitabilityMargins and returns on capital today
35
52
Quality GrowthAre margins and returns improving?
55
36
CashflowEarnings quality: real cash, not paper profit
35
46
Fin. StrengthBalance sheet, leverage, solvency risk
42
38
InvestmentDisciplined investing over empire-building
86
51
Low VolatilityCalm price path (market factor)
44
42
MomentumPrice trend over the last 3–12 months (market factor)
70
91
52W MomentumDistance to the 52-week high (market factor)
85
96
Net IssuanceBuybacks instead of dilution
100
74
What the models say
The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.
Southwest Airlines
Earnings-Based$8.08
Dividend Discount$14.36
Multiples$15.34
Asset-Based$10.94
Economic Profit$8.74
Growth Earnings$14.33
15 of 16 models see the stock below the current price.
Delta Air Lines
DCF Models$115
Earnings-Based$60.01
Dividend Discount$11.58
Multiples$138
Asset-Based$21.14
Growth DCF$99.27
Economic Profit$77.60
Growth Earnings$138
10 of 26 models see the stock below the current price.
Scenario ranges
From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.
Southwest Airlines
Bear $17.80Fair Value $22.85Bull $29.67
$46.94 = current price (white tick)
Delta Air Lines
Bear $55.99Fair Value $98.57Bull $136
$91.98 = current price (white tick)
Compare two other stocks
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Ranked within their sector
Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.
Southwest Airlines · Industrials
Quality score59 · Top 25%
Fair value upside-51% · below median
Delta Air Lines · Industrials
Quality score57 · above median
Fair value upside+7% · above median
Bottom line
As of Aug 8, 2026, Fair Value Calculator sees Delta Air Lines as the more attractively valued of the two: Southwest Airlines trades at $46.94 versus a fair value of $22.85 (-51%), while Delta Air Lines trades at $91.98 versus $98.57 (+7%).
Southwest Airlines has the higher quality score (59/100).
See the full analysis →
More comparisons
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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.
