Southwest Airlines (NYSE:LUV – Get Free Report) and Jet.AI (NASDAQ:JTAI – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.
Analyst Ratings
This is a breakdown of recent ratings for Southwest Airlines and Jet.AI, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Southwest Airlines | 3 | 9 | 11 | 0 | 2.35 |
| Jet.AI | 1 | 1 | 0 | 0 | 1.50 |
Southwest Airlines presently has a consensus price target of $48.20, suggesting a potential upside of 8.41%. Given Southwest Airlines’ stronger consensus rating and higher probable upside, analysts clearly believe Southwest Airlines is more favorable than Jet.AI.
Risk & Volatility
Southwest Airlines has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Jet.AI has a beta of -0.29, suggesting that its share price is 129% less volatile than the S&P 500.
Profitability
This table compares Southwest Airlines and Jet.AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Southwest Airlines | 3.34% | 18.05% | 4.44% |
| Jet.AI | 49.49% | -34.68% | -30.95% |
Valuation & Earnings
This table compares Southwest Airlines and Jet.AI”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Southwest Airlines | $28.06 billion | 0.78 | $441.00 million | $2.08 | 21.37 |
| Jet.AI | $9.18 million | 0.14 | $4.59 million | $505.60 | 0.00 |
Southwest Airlines has higher revenue and earnings than Jet.AI. Jet.AI is trading at a lower price-to-earnings ratio than Southwest Airlines, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
80.8% of Southwest Airlines shares are owned by institutional investors. Comparatively, 5.5% of Jet.AI shares are owned by institutional investors. 0.9% of Southwest Airlines shares are owned by insiders. Comparatively, 1.0% of Jet.AI shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Southwest Airlines beats Jet.AI on 11 of the 14 factors compared between the two stocks.
About Southwest Airlines
Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2023, the company operated a total fleet of 817 Boeing 737 aircraft; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. It also provides inflight entertainment and connectivity services on Wi-Fi enabled aircraft; and Rapid Rewards loyalty program that enables program members to earn points for dollars spent on Southwest base fares. In addition, the company offers a suite of digital platforms to support customers’ travel needs, including websites and apps; and SWABIZ, an online booking tool. Further, it provides ancillary services, such as Southwest’s EarlyBird Check-In, upgraded boarding, and transportation of pets and unaccompanied minors. Southwest Airlines Co. was incorporated in 1967 and is headquartered in Dallas, Texas.
About Jet.AI
Jet.AI Inc. primarily engages in the development and operation of private aviation platforms. The company operates CharterGPT, a booking platform that functions as a prospecting and quoting platform to arrange private jet travel with its aircrafts and third-party carriers. It also provides Reroute AI software that recycles aircraft waiting to return to base into prospective new charter bookings to destinations within specific distances; and DynoFlight, a software application programming interface (API), which enables aircraft operators to track and estimate emissions, and purchase carbon offset credits. In addition, the company offers Flight Club API, an aviation software, that enables FAA Part 135 operators to function simultaneously under FAA Part 380, which permits sale of private jet service by the seat instead of by whole aircraft. Further, it offers aircraft charter, management, and brokerage services. The company was founded in 2018 and is headquartered in Las Vegas, Nevada.
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