ACM vs. LUV: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACM and LUV, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ACM’s market capitalization stands at 15.31 billion USD, while LUV’s is 19.42 billion USD, indicating their market valuations are broadly comparable.
With betas of 0.97 for ACM and 1.23 for LUV, both stocks show similar sensitivity to overall market movements.
| Symbol | ACM | LUV |
|---|---|---|
| Company Name | Aecom | Southwest Airlines Co. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Engineering & Construction | Airlines, Airports & Air Services |
| CEO | W. Troy Rudd | Robert E. Jordan |
| Price | 115.75 USD | 34.08 USD |
| Market Cap | 15.31 billion USD | 19.42 billion USD |
| Beta | 0.97 | 1.23 |
| Exchange | NYSE | NYSE |
| IPO Date | May 10, 2007 | January 2, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ACM and LUV by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ACM
27.52%
Engineering & Construction Industry
- Max
- 39.77%
- Q3
- 28.08%
- Median
- 13.64%
- Q1
- 7.13%
- Min
- -14.48%
ACM’s Return on Equity of 27.52% is on par with the norm for the Engineering & Construction industry, indicating its profitability relative to shareholder equity is typical for the sector.
LUV
5.38%
Airlines, Airports & Air Services Industry
- Max
- 42.21%
- Q3
- 26.98%
- Median
- 13.01%
- Q1
- 0.37%
- Min
- -17.14%
LUV’s Return on Equity of 5.38% is on par with the norm for the Airlines, Airports & Air Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
ACM
6.55%
Engineering & Construction Industry
- Max
- 22.01%
- Q3
- 12.65%
- Median
- 8.09%
- Q1
- 4.79%
- Min
- -2.53%
ACM’s Return on Invested Capital of 6.55% is in line with the norm for the Engineering & Construction industry, reflecting a standard level of efficiency in generating profits from its capital base.
LUV
1.92%
Airlines, Airports & Air Services Industry
- Max
- 17.34%
- Q3
- 13.78%
- Median
- 4.53%
- Q1
- 1.05%
- Min
- -13.54%
LUV’s Return on Invested Capital of 1.92% is in line with the norm for the Airlines, Airports & Air Services industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
ACM
3.85%
Engineering & Construction Industry
- Max
- 11.23%
- Q3
- 6.47%
- Median
- 3.96%
- Q1
- 2.79%
- Min
- -2.45%
ACM’s Net Profit Margin of 3.85% is aligned with the median group of its peers in the Engineering & Construction industry. This indicates its ability to convert revenue into profit is typical for the sector.
LUV
1.98%
Airlines, Airports & Air Services Industry
- Max
- 24.88%
- Q3
- 9.50%
- Median
- 3.91%
- Q1
- -1.02%
- Min
- -10.56%
LUV’s Net Profit Margin of 1.98% is aligned with the median group of its peers in the Airlines, Airports & Air Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
ACM
5.98%
Engineering & Construction Industry
- Max
- 13.74%
- Q3
- 8.50%
- Median
- 6.20%
- Q1
- 4.58%
- Min
- 0.34%
ACM’s Operating Profit Margin of 5.98% is around the midpoint for the Engineering & Construction industry, indicating that its efficiency in managing core business operations is typical for the sector.
LUV
1.99%
Airlines, Airports & Air Services Industry
- Max
- 22.38%
- Q3
- 14.22%
- Median
- 9.66%
- Q1
- -0.09%
- Min
- -12.58%
LUV’s Operating Profit Margin of 1.99% is around the midpoint for the Airlines, Airports & Air Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ACM | LUV |
|---|---|---|
| Return on Equity (TTM) | 27.52% | 5.38% |
| Return on Assets (TTM) | 5.24% | 1.64% |
| Return on Invested Capital (TTM) | 6.55% | 1.92% |
| Net Profit Margin (TTM) | 3.85% | 1.98% |
| Operating Profit Margin (TTM) | 5.98% | 1.99% |
| Gross Profit Margin (TTM) | 7.09% | 18.43% |
Financial Strength
Current Ratio
ACM
--
Engineering & Construction Industry
- Max
- 2.02
- Q3
- 1.66
- Median
- 1.38
- Q1
- 1.24
- Min
- 0.94
Current Ratio data for ACM is currently unavailable.
LUV
0.77
Airlines, Airports & Air Services Industry
- Max
- 1.77
- Q3
- 1.68
- Median
- 0.77
- Q1
- 0.62
- Min
- 0.32
LUV’s Current Ratio of 0.77 aligns with the median group of the Airlines, Airports & Air Services industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ACM
1.32
Engineering & Construction Industry
- Max
- 1.76
- Q3
- 0.91
- Median
- 0.67
- Q1
- 0.28
- Min
- 0.01
ACM’s leverage is in the upper quartile of the Engineering & Construction industry, with a Debt-to-Equity Ratio of 1.32. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
LUV
0.85
Airlines, Airports & Air Services Industry
- Max
- 3.85
- Q3
- 2.92
- Median
- 1.02
- Q1
- 0.43
- Min
- 0.04
LUV’s Debt-to-Equity Ratio of 0.85 is typical for the Airlines, Airports & Air Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ACM
5.28
Engineering & Construction Industry
- Max
- 20.20
- Q3
- 11.91
- Median
- 6.46
- Q1
- 3.18
- Min
- -2.69
ACM’s Interest Coverage Ratio of 5.28 is positioned comfortably within the norm for the Engineering & Construction industry, indicating a standard and healthy capacity to cover its interest payments.
LUV
2.88
Airlines, Airports & Air Services Industry
- Max
- 8.60
- Q3
- 6.00
- Median
- 4.19
- Q1
- 1.03
- Min
- -1.40
LUV’s Interest Coverage Ratio of 2.88 is positioned comfortably within the norm for the Airlines, Airports & Air Services industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ACM | LUV |
|---|---|---|
| Current Ratio (TTM) | -- | 0.77 |
| Quick Ratio (TTM) | -- | 0.72 |
| Debt-to-Equity Ratio (TTM) | 1.32 | 0.85 |
| Debt-to-Asset Ratio (TTM) | 0.26 | 0.24 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.23 | -0.05 |
| Interest Coverage Ratio (TTM) | 5.28 | 2.88 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ACM and LUV. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ACM
0.86%
Engineering & Construction Industry
- Max
- 1.31%
- Q3
- 0.40%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.86%, ACM offers a more attractive income stream than most of its peers in the Engineering & Construction industry, signaling a strong commitment to shareholder returns.
LUV
2.11%
Airlines, Airports & Air Services Industry
- Max
- 162.17%
- Q3
- 2.10%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.11%, LUV offers a more attractive income stream than most of its peers in the Airlines, Airports & Air Services industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ACM
20.16%
Engineering & Construction Industry
- Max
- 32.30%
- Q3
- 7.09%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ACM’s Dividend Payout Ratio of 20.16% is in the upper quartile for the Engineering & Construction industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
LUV
58.97%
Airlines, Airports & Air Services Industry
- Max
- 106.87%
- Q3
- 15.62%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
LUV’s Dividend Payout Ratio of 58.97% is in the upper quartile for the Airlines, Airports & Air Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ACM | LUV |
|---|---|---|
| Dividend Yield (TTM) | 0.86% | 2.11% |
| Dividend Payout Ratio (TTM) | 20.16% | 58.97% |
Valuation
Price-to-Earnings Ratio
ACM
24.84
Engineering & Construction Industry
- Max
- 95.41
- Q3
- 56.70
- Median
- 32.28
- Q1
- 22.94
- Min
- 4.72
ACM’s P/E Ratio of 24.84 is within the middle range for the Engineering & Construction industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
LUV
36.45
Airlines, Airports & Air Services Industry
- Max
- 24.07
- Q3
- 18.40
- Median
- 12.44
- Q1
- 11.24
- Min
- 7.21
At 36.45, LUV’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Airlines, Airports & Air Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
ACM
2.51
Engineering & Construction Industry
- Max
- 4.99
- Q3
- 3.64
- Median
- 2.51
- Q1
- 1.64
- Min
- 0.03
The Forward PEG Ratio is often not a primary valuation metric in the Engineering & Construction industry.
LUV
0.97
Airlines, Airports & Air Services Industry
- Max
- 1.38
- Q3
- 1.07
- Median
- 0.61
- Q1
- 0.32
- Min
- 0.03
The Forward PEG Ratio is often not a primary valuation metric in the Airlines, Airports & Air Services industry.
Price-to-Sales Ratio
ACM
0.95
Engineering & Construction Industry
- Max
- 3.34
- Q3
- 2.05
- Median
- 1.50
- Q1
- 0.83
- Min
- 0.44
ACM’s P/S Ratio of 0.95 aligns with the market consensus for the Engineering & Construction industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
LUV
0.70
Airlines, Airports & Air Services Industry
- Max
- 1.84
- Q3
- 1.69
- Median
- 0.98
- Q1
- 0.45
- Min
- 0.14
LUV’s P/S Ratio of 0.70 aligns with the market consensus for the Airlines, Airports & Air Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
ACM
6.71
Engineering & Construction Industry
- Max
- 10.70
- Q3
- 7.33
- Median
- 4.69
- Q1
- 2.53
- Min
- 0.79
ACM’s P/B Ratio of 6.71 is within the conventional range for the Engineering & Construction industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
LUV
2.13
Airlines, Airports & Air Services Industry
- Max
- 12.86
- Q3
- 8.15
- Median
- 2.07
- Q1
- 1.50
- Min
- 0.62
LUV’s P/B Ratio of 2.13 is within the conventional range for the Airlines, Airports & Air Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ACM | LUV |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 24.84 | 36.45 |
| Forward PEG Ratio (TTM) | 2.51 | 0.97 |
| Price-to-Sales Ratio (P/S, TTM) | 0.95 | 0.70 |
| Price-to-Book Ratio (P/B, TTM) | 6.71 | 2.13 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 18.31 | -34.50 |
| EV-to-EBITDA (TTM) | 14.51 | 7.49 |
| EV-to-Sales (TTM) | 1.04 | 0.70 |