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 compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Valuation & Earnings
This table compares Southwest Airlines and Jet.AI”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Southwest Airlines | $28.06 billion | 0.79 | $441.00 million | $2.08 | 21.77 |
| Jet.AI | $9.18 million | 0.13 | $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.
Volatility & Risk
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.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations 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 target price of $48.20, indicating a potential upside of 6.44%. Given Southwest Airlines’ stronger consensus rating and higher probable upside, equities analysts plainly believe Southwest Airlines is more favorable than Jet.AI.
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 company insiders. Comparatively, 1.0% of Jet.AI shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
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% |
Summary
Southwest Airlines beats Jet.AI on 10 of the 13 factors compared between the two stocks.
About Southwest Airlines
Southwest Airlines Co. is a passenger airline that provides scheduled air transportation in the United States and to destinations in Mexico, Central America and the Caribbean. The company also offers air cargo services and operates the Rapid Rewards loyalty program. Founded in 1967 and beginning flight operations in 1971, Southwest grew from a Texas-based carrier into a major U.S. airline. Its headquarters are in Dallas, Texas. Southwest is led by President and Chief Executive Officer Bob Jordan, who assumed the role in 2022.
About Jet.AI
Jet.AI Inc., formerly known as Jet Token, Inc., is an aviation and technology company focused on private air travel. The company combines software tools with aviation services to help customers search for, arrange and manage private jet flights. Jet.AI’s technology offerings include a private aviation booking platform and artificial-intelligence tools designed to streamline aircraft selection, flight planning and charter quotations. Its services are intended to connect travelers with available private aircraft and provide a more efficient alternative to traditional charter-booking processes.
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