Can Delta Air Lines Outrun Southwest Airlines in the Next Rally?
Southwest Airlines surged 17% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Delta Air Lines gives you more. Delta Air Lines (DAL) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Southwest Airlines (LUV) stock, suggesting you may be better off investing in DAL
- DAL’s quarterly revenue growth was 6.4%, vs. LUV’s 1.1%.
- In addition, its Last 12 Months revenue growth came in at 4.3%, ahead of LUV’s 0.6%.
- DAL leads on profitability over both periods – LTM margin of 9.7% and 3-year average of 9.5%.
These differences become even clearer when you look at the financials side by side. The table highlights how LUV’s fundamentals stack up against those of DAL on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| LUV | DAL | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 59.2 | 7.2 | DAL |
| Revenue Growth | |||
| Last Quarter | 1.1% | 6.4% | DAL |
| Last 12 Months | 0.6% | 4.3% | DAL |
| Last 3 Year Average | 6.8% | 10.8% | DAL |
| Operating Margins | |||
| Last 12 Months | 1.1% | 9.7% | DAL |
| Last 3 Year Average | 0.3% | 9.5% | DAL |
| Momentum | |||
| Last 3 Year Return | -3.9% | 94.3% | DAL |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: LUV Revenue Comparison | DAL Revenue Comparison
See more margin details: LUV Operating Income Comparison | DAL Operating Income Comparison
- LUV Lost 19% In A Month. Do You Buy Or Wait?
- Is The 21% Drop In LUV Stock, A Buying Opportunity?
- After A 21% Slide, Is LUV Stock Worth A Look?
- LUV Stock Down -18% after 5-Day Loss Streak
- LUV Lost 12% In A Week. Past Slides Turned Into Crashes.
- S&P 500 Movers | Winners: UAL, DAL, LUV | Losers: AXON, PTC, FTNT
See detailed fundamentals on Buy or Sell DAL Stock and Buy or Sell LUV Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| LUV Return | -13% | -8% | -21% | -12% | 19% | 7% | -29% | ||
| DAL Return | -31% | -3% | -16% | 23% | 52% | 9% | 15% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 112% | <=== | |
| Monthly Win Rates [3] | |||||||||
| LUV Win Rate | 58% | 33% | 50% | 33% | 75% | 40% | 48% | ||
| DAL Win Rate | 33% | 50% | 50% | 42% | 58% | 60% | 49% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| LUV Max Drawdown | -56% | -16% | -28% | -33% | -17% | -28% | -29% | ||
| DAL Max Drawdown | -67% | -17% | -28% | -6% | -8% | -41% | -28% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 12/3/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read DAL Dip Buyer Analyses and LUV Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about LUV or DAL? Consider portfolio approach.
Stock Picking Falls Short Against Multi Asset Portfolios
Markets move differently but a mix of assets smooths volatility. A multi asset portfolio keeps you invested and reduces the impact of sharp drops in any single area.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices