This paper analyzes the extent to which the low voltage ride through (LVRT) capability of wind farms using squirrel cage generators can be enhanced by the use of a STATCOM, compared to the thyristor controlled static var compensator (SVC). The transient stability margin is proposed as the indicator of LVRT capability. A simplified analytical approach based on torque-slip characteristics is first proposed to quantify the effect of the STATCOM and the SVC on the transient stability margin. Results from experiments with a STATCOM and a 7.5 kW induction machine emulating a wind turbine are used to validate the suggested analytical approach. Further verifications based on detailed time-domain simulations are also provided. Calculations, simulations and measurements confirm how the increased STATCOM rating can provide an increased transient stability margin and thus enhanced LVRT capability. Compared to the SVC, the STATCOM gives a larger contribution to the transient margin as indicated by both calculations and simulations. The inaccuracies introduced by neglecting the flux transients in the suggested approach are discussed and found reasonable for an estimation method when considering the simplicity compared to detailed time-domain simulation studies. A method for estimating the required rating of different compensation devices to ensure stability after a fault is suggested based on the same approach.