AME vs. LUV: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AME and LUV, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.
Company Overview
AME dominates in value with a market cap of 41.02 billion USD, eclipsing LUV’s 18.10 billion USD by roughly 2.27×.
With betas of 1.12 for AME and 1.18 for LUV, both show similar volatility profiles relative to the overall market.
| Symbol | AME | LUV |
|---|---|---|
| Company Name | AMETEK, Inc. | Southwest Airlines Co. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Industrial - Machinery | Airlines, Airports & Air Services |
| CEO | Mr. David A. Zapico | Mr. Robert E. Jordan |
| Price | 177.68 USD | 31.76 USD |
| Market Cap | 41.02 billion USD | 18.10 billion USD |
| Beta | 1.12 | 1.18 |
| Exchange | NYSE | NYSE |
| IPO Date | July 19, 1984 | January 2, 1980 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AME and LUV over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Hover over the lines to see the investment’s value and total return (%) at specific dates.
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
The section examines key financial ratios to assess the valuation of AME and LUV based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- LUV reports a negative Price-to-Free Cash Flow ratio of -32.15, showing a cash flow shortfall that could threaten its operational sustainability, while AME at 23.94 maintains positive cash flow.
| Symbol | AME | LUV |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 28.93 | 33.97 |
| Forward PEG Ratio (TTM) | 3.87 | 0.92 |
| Price-to-Sales Ratio (P/S, TTM) | 5.91 | 0.66 |
| Price-to-Book Ratio (P/B, TTM) | 4.11 | 1.98 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 23.94 | -32.15 |
| EV-to-EBITDA (TTM) | 20.29 | 6.97 |
| EV-to-Sales (TTM) | 6.13 | 0.65 |
| EV-to-Free Cash Flow (TTM) | 24.83 | -31.90 |
Dividend Comparison
LUV stands out with a 2.27% dividend yield—around 250% above AME’s 0.65%—highlighting its emphasis on generous payouts.
| Symbol | AME | LUV |
|---|---|---|
| Dividend Yield (TTM) | 0.65% | 2.27% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AME and LUV, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- LUV’s current ratio of 0.77 indicates its assets may not cover near-term debts, whereas AME at 1.41 maintains healthy liquidity.
- LUV posts a quick ratio of 0.72, indicating limited coverage of short-term debts from its most liquid assets—while AME at 0.86 enjoys stronger liquidity resilience.
| Symbol | AME | LUV |
|---|---|---|
| Current Ratio (TTM) | 1.41 | 0.77 |
| Quick Ratio (TTM) | 0.86 | 0.72 |
| Debt-to-Equity Ratio (TTM) | 0.19 | 0.85 |
| Debt-to-Assets Ratio (TTM) | 0.13 | 0.24 |
| Interest Coverage Ratio (TTM) | 23.38 | 2.88 |