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Compare Stocks › LUV vs PFE

Southwest Airlines Co. (LUV) vs Pfizer Inc. (PFE)

LUV
Southwest Airlines Co.
$40.87
VS
PFE
Pfizer Inc.
$27.41

Rewards

LUV
  • ★Share count has been reduced by 13% over the past 4 years through buybacks, increasing each share's claim on earnings.
  • ★Each dollar of retained earnings has created $11.48 of market value — management is an exceptional capital allocator.
  • ★5 insider purchases over the past 12 months with a buy/sell ratio above 3:1 — a sustained pattern of insider confidence.
PFE
  • ★Gross margin of 75.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Dividend yield of 6.28% with a consistent or growing payout over the past 4 years.
  • ★FCF yield of 8.6% is historically attractive — the business generates significant cash relative to its price.

Risks

LUV
  • ⚠Gross margin of 22.0% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠Trailing P/E of 51.7x is 26% above the historical average of 41.2x — the stock trades at a premium to its own history.
  • ⚠Beneish M-Score of -1.64 flags financial patterns consistent with potential earnings manipulation — warrants further investigation.
PFE
  • ⚠ROIC has declined by 13.9 percentage points over the observed period, which may signal competitive erosion.
  • ⚠Free cash flow has declined at a 29.6% CAGR over the past 4 years — a concerning trend.

Key Valuation Metrics

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LUV
PFE
Valuation
$-683.88M
Free Cash Flow
$13.43B
-3.24%
FCF Yield
8.61%
51.73
Trailing P/E
20.15
8.42
Forward P/E
9.69
Quality & Moat
8.09%
ROIC
7.67%
5.53%
ROE
8.96%
22.04%
Gross Margin
75.81%
1.02
PEG Ratio
N/A
Balance Sheet Safety
0.75
Debt / Equity
0.78
N/A
Interest Coverage
N/A
1.60
Net Debt / EBITDA
2.10
1.76%
Dividend Yield
6.28%
LUV: 3Ties: 2PFE: 6
LUVPFE

Historical Fundamentals

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LUV

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

PFE

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$1 Retained Earnings Test

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LUV
$11.48
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$114.0M
Δ Market Cap
+$1.31B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
PFE
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-10.61B
Δ Market Cap
$-146.18B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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LUV
32.3% Overvalued
Price is 32.3% above estimated fair value
Current Price: $40.87
Fair Value: $30.89
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
PFE
140.2% Overvalued
Price is 140.2% above estimated fair value
Current Price: $27.41
Fair Value: $11.41
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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LUV

Requires positive FCF to compute implied growth rate.

PFE

What growth rate is the market pricing in at $27?

+11.8%
Market-Implied Owner Earnings Growth
Standard FCF implies +4.3%

The market implies +11.8% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +4.3%, reflecting heavy growth investment.

Economic Moat Score

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LUV
37/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though revenue predictability shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
PFE
35/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

Forensic Accounting

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LUV
-1.64
Likely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
PFE
-2.53
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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LUV
Insiders 1.2%Institutions 97.7%Retail & Other 1.0%
No. of Institutional Holders1,090
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
PFE
Insiders 0.1%Institutions 67.7%Retail & Other 32.2%
No. of Institutional Holders3,693
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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LUV
0
Buys (3M)
5
Buys (12M)
Total value (12M): $713,401
SARETSKY GREGG A
Director
$100,447
@ $30.03 · 2025-08-06
FEINBERG SARAH
Director
$45,008
@ $30.01 · 2025-08-05
SARETSKY GREGG A
Director
$100,169
@ $27.29 · 2025-04-30
BREBER PIERRE R.
Director
$268,877
@ $26.89 · 2025-04-29
HESS DAVID P
Director
$198,900
@ $26.52 · 2025-04-28
FEINBERG SARAH
Director
$15,740
@ $31.48 · 2025-03-14
WATSON PATRICIA A
Director
$99,935
@ $30.58 · 2025-03-13
REYNOLDS CHRISTOPHER P.
Director
$99,955
@ $30.68 · 2025-03-13
CUSH C DAVID
Director
$150,150
@ $30.03 · 2025-03-12
ATHERTON LISA M
Director
$3,691
@ $31.28 · 2025-01-30
GANGWAL RAKESH
Director
$7.11M
@ $29.39 · 2024-10-01
GANGWAL RAKESH
Director
$4.83M
@ $29.15 · 2024-10-01
GANGWAL RAKESH
Director
$3.75M
@ $29.49 · 2024-10-01
GANGWAL RAKESH
Director
$15.87M
@ $29.89 · 2024-10-01
GANGWAL RAKESH
Director
$19.30M
@ $29.98 · 2024-10-01
KELLY GARY C
Officer and Director
$1.00M
@ $29.52 · 2024-09-30
GANGWAL RAKESH
Director
$34.92M
@ $29.47 · 2024-09-30
GANGWAL RAKESH
Director
$20.93M
@ $29.65 · 2024-09-30
Open market purchases · includes direct & indirect ownership · excludes option exercises
PFE
0
Buys (3M)
0
Buys (12M)
BLAYLOCK RONALD E
Director
$499,072
@ $25.65 · 2025-02-13
GOTTLIEB SCOTT
Director
$28,240
@ $28.24 · 2024-10-30
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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LUV
0
Sells (3M)
1
Sells (12M)
Total value (12M): $302,056
JONES JUSTIN
Officer
$302,056
@ $37.36 · 2025-12-05
RUTHERFORD LINDA B
Officer
$132,386
@ $34.39 · 2024-12-06
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
PFE
0
Sells (3M)
0
Sells (12M)
DAMICO JENNIFER B.
Officer
$64,825
@ $25.93 · 2025-03-04
DAMICO JENNIFER B.
Officer
$147,714
@ $28.66 · 2024-08-13
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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LUV
FearGreed
😨Fear(36/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
PFE
FearGreed
😏Greed(64/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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LUV
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Fear (36)
PFE
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Greed (64)
View LUV Full AnalysisView PFE Full Analysis