Qantas Airways (OTCMKTS:QABSY – Get Free Report) and Southwest Airlines (NYSE:LUV – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Earnings and Valuation
This table compares Qantas Airways and Southwest Airlines”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Qantas Airways | N/A | N/A | N/A | N/A | N/A |
| Southwest Airlines | $28.06 billion | 0.82 | $441.00 million | $1.63 | 28.82 |
Profitability
This table compares Qantas Airways and Southwest Airlines’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Qantas Airways | N/A | N/A | N/A |
| Southwest Airlines | 2.78% | 14.15% | 3.60% |
Institutional & Insider Ownership
80.8% of Southwest Airlines shares are held by institutional investors. 0.9% of Southwest Airlines shares are held 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.
Analyst Ratings
This is a summary of current ratings and recommmendations for Qantas Airways and Southwest Airlines, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Qantas Airways | 1 | 0 | 0 | 0 | 1.00 |
| Southwest Airlines | 4 | 9 | 9 | 0 | 2.23 |
Southwest Airlines has a consensus target price of $49.55, suggesting a potential upside of 5.49%. Given Southwest Airlines’ stronger consensus rating and higher probable upside, analysts plainly believe Southwest Airlines is more favorable than Qantas Airways.
Summary
Southwest Airlines beats Qantas Airways on 9 of the 9 factors compared between the two stocks.
About Qantas Airways
Qantas Airways Limited provides air transportation services in Australia and internationally. The company operates through Qantas Domestic, Qantas International, Jetstar Group, and Qantas Loyalty segments. It offers passenger flying, and air cargo and express freight services; and customer loyalty recognition programs. The company operates a fleet of aircraft under the Qantas and Jetstar brands. Qantas Airways Limited was founded in 1920 and is based in Mascot, Australia.
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.
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