Reviewing Qantas Airways (OTCMKTS:QABSY) and Southwest Airlines (NYSE:LUV)

Southwest Airlines (NYSE:LUV) and Qantas Airways (OTCMKTS:QABSY) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Valuation and Earnings

This table compares Southwest Airlines and Qantas Airways”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southwest Airlines	$28.06 billion	0.78	$441.00 million	$1.63	27.63
Qantas Airways	N/A	N/A	N/A	N/A	N/A

Southwest Airlines has higher revenue and earnings than Qantas Airways.

Institutional & Insider Ownership

80.8% of Southwest Airlines shares are held by institutional investors. 0.9% of Southwest Airlines shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Southwest Airlines and Qantas Airways, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southwest Airlines	4	9	9	0	2.23
Qantas Airways	1	0	0	0	1.00

Southwest Airlines presently has a consensus price target of $49.55, indicating a potential upside of 10.05%. Given Southwest Airlines’ stronger consensus rating and higher possible upside, equities analysts clearly believe Southwest Airlines is more favorable than Qantas Airways.

Profitability

This table compares Southwest Airlines and Qantas Airways’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southwest Airlines	2.78%	14.15%	3.60%
Qantas Airways	N/A	N/A	N/A

Summary

Southwest Airlines beats Qantas Airways on 9 of the 9 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 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.