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Southwest Airlines Co. vs United Airlines Holdings: Which Stock Looks Stronger in 2026?

United Airlines holds the cleaner structural position, with the lead spread across profitability and valuation. Southwest Airlines Co still has the edge on stability, which keeps the comparison from looking entirely one-sided. The market setup is broadly comparable for both — no clear directional signal from price behavior. The market is not adding a decisive signal either way — the structural read carries the weight.

The comparison is based on similar long-term financial trajectories, not sector labels. Both peer scores are relative to the S&P 500 universe, making them directly comparable.

Updated 2026-07-05

The lead is spread across profitability and valuation, rather than sitting in one isolated gap. United Airlines Holdings, Inc. leads by 19 points on the overall comparison score.

INDUSTRY COMPARISON

Both operate in: Airlines

This comparison is based on industry proximity, not on functional trajectory similarity. LUV and UAL share the same industry classification.

For a similarity-based comparison, see how Southwest Airlines Co and United Airlines each position within their functional peer groups in AssetNext.

Peer-Relative Score
LUV
Southwest Airlines Co.
44
Peer-Score
Signal qualitylow
Peer basis: S&P 500
vs
UAL
United Airlines Holdings, Inc.
63
Peer-Score
Signal qualitylow
Peer basis: S&P 500

Scores reflect position relative to comparable companies with similar long-term financial trajectories.

Score differences across key dimensions.

Dimension spread: LUV vs UAL Profitability 24 57 Stability 40 29 Valuation 59 85 Growth 56 72 LUV UAL
Gap Ranking
#1 Profitability +33
#2 Valuation +26
#3 Growth +16
#4 Stability +11
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for LUV and UAL Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer LUVUAL Relative valuation Structural strength

United Airlines Holdings, Inc. looks stronger both structurally and on relative valuation.

Valuation position uses peer-relative PE percentile (idx_pct_pe) where available.

Entry today — historical context

Where LUV and UAL each sit in their own 5-year price and valuation history.

BASED ON 5-YEAR HISTORY LUV Elevated · above norm 0th 50th 100th 0 pct gap UAL Elevated · above norm 0th 50th 100th 98th 99th
LUV (98th percentile) and UAL (99th percentile) both sit in the upper portion of their own 5-year ranges. The historical entry context is broadly similar for both. This reflects entry timing, not which company is structurally stronger.

Describes historical entry positioning only. Descriptive — not investment advice.

Relative Position vs Comparable Companies
Profitability
United Airlines Holdings, Inc. sits in the stronger part of the group on profitability, while Southwest Airlines Co. is closer to mid-pack.
Valuation
Both profiles are strong on valuation, but United Airlines Holdings, Inc. leads clearly.
Profitability — Dominant Gap
LUV
24
UAL
57
Gap+33in favour of UAL

Capital efficiency adds support, with a 7.7-point ROIC advantage.

What keeps the gap from being one-sided

Southwest Airlines Co. still shows lower market-fundamental divergence, which keeps the wider picture mixed rather than completely one-sided.

What this means for the comparison

The lead is built on both profitability and valuation — though stability still provides a counterweight.

Explore full peer positioning in AssetNext

Break down the LUV vs UAL comparison across all dimensions with the full interactive tool.

Explore full breakdown →
Similar profitability-and-valuation comparisons

Explore how LUV and UAL each compare against other companies in their peer groups.

Rule-based, descriptive analysis only. Derived from peer percentile dimensions. Not investment advice. Peer groups are determined algorithmically based on structural similarity — not by sector classification alone.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.