AVY vs. LUV: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVY and LUV, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AVY’s market capitalization stands at 14.32 billion USD, while LUV’s is 19.42 billion USD, indicating their market valuations are broadly comparable.
With betas of 0.89 for AVY and 1.23 for LUV, both stocks show similar sensitivity to overall market movements.
| Symbol | AVY | LUV |
|---|---|---|
| Company Name | Avery Dennison Corporation | Southwest Airlines Co. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Business Equipment & Supplies | Airlines, Airports & Air Services |
| CEO | Deon M. Stander | Robert E. Jordan |
| Price | 183.24 USD | 34.08 USD |
| Market Cap | 14.32 billion USD | 19.42 billion USD |
| Beta | 0.89 | 1.23 |
| Exchange | NYSE | NYSE |
| IPO Date | April 4, 1977 | January 2, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVY 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
AVY
30.48%
Business Equipment & Supplies Industry
- Max
- 16.56%
- Q3
- 16.56%
- Median
- 12.99%
- Q1
- 11.92%
- Min
- 11.92%
AVY’s Return on Equity of 30.48% is exceptionally high, placing it well beyond the typical range for the Business Equipment & Supplies industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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
AVY
13.21%
Business Equipment & Supplies Industry
- Max
- 13.21%
- Q3
- 11.67%
- Median
- 10.45%
- Q1
- 8.54%
- Min
- 6.64%
In the upper quartile for the Business Equipment & Supplies industry, AVY’s Return on Invested Capital of 13.21% signifies a highly effective use of its capital to generate profits when compared to its peers.
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
AVY
7.98%
Business Equipment & Supplies Industry
- Max
- 13.49%
- Q3
- 7.98%
- Median
- 5.35%
- Q1
- 3.84%
- Min
- 3.84%
AVY’s Net Profit Margin of 7.98% is aligned with the median group of its peers in the Business Equipment & Supplies 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
AVY
12.83%
Business Equipment & Supplies Industry
- Max
- 17.67%
- Q3
- 12.83%
- Median
- 8.01%
- Q1
- 7.07%
- Min
- 5.16%
AVY’s Operating Profit Margin of 12.83% is around the midpoint for the Business Equipment & Supplies 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 | AVY | LUV |
|---|---|---|
| Return on Equity (TTM) | 30.48% | 5.38% |
| Return on Assets (TTM) | 8.36% | 1.64% |
| Return on Invested Capital (TTM) | 13.21% | 1.92% |
| Net Profit Margin (TTM) | 7.98% | 1.98% |
| Operating Profit Margin (TTM) | 12.83% | 1.99% |
| Gross Profit Margin (TTM) | 28.79% | 18.43% |
Financial Strength
Current Ratio
AVY
1.03
Business Equipment & Supplies Industry
- Max
- 1.76
- Q3
- 1.76
- Median
- 1.65
- Q1
- 1.19
- Min
- 1.03
AVY’s Current Ratio of 1.03 falls into the lower quartile for the Business Equipment & Supplies industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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
AVY
1.59
Business Equipment & Supplies Industry
- Max
- 0.69
- Q3
- 0.69
- Median
- 0.61
- Q1
- 0.21
- Min
- 0.01
With a Debt-to-Equity Ratio of 1.59, AVY operates with exceptionally high leverage compared to the Business Equipment & Supplies industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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
AVY
9.41
Business Equipment & Supplies Industry
- Max
- 12.58
- Q3
- 10.20
- Median
- 8.76
- Q1
- 6.65
- Min
- 2.29
AVY’s Interest Coverage Ratio of 9.41 is positioned comfortably within the norm for the Business Equipment & Supplies 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 | AVY | LUV |
|---|---|---|
| Current Ratio (TTM) | 1.03 | 0.77 |
| Quick Ratio (TTM) | 0.68 | 0.72 |
| Debt-to-Equity Ratio (TTM) | 1.59 | 0.85 |
| Debt-to-Asset Ratio (TTM) | 0.41 | 0.24 |
| Net Debt-to-EBITDA Ratio (TTM) | 2.32 | -0.05 |
| Interest Coverage Ratio (TTM) | 9.41 | 2.88 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVY 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
AVY
1.95%
Business Equipment & Supplies Industry
- Max
- 19.11%
- Q3
- 8.38%
- Median
- 3.82%
- Q1
- 2.68%
- Min
- 2.04%
AVY’s Dividend Yield of 1.95% is below the typical range for the Business Equipment & Supplies industry. This indicates that shareholder returns are likely driven more by potential capital appreciation than by dividend income.
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
AVY
40.30%
Business Equipment & Supplies Industry
- Max
- 233.86%
- Q3
- 93.40%
- Median
- 43.44%
- Q1
- 39.85%
- Min
- 38.49%
AVY’s Dividend Payout Ratio of 40.30% is within the typical range for the Business Equipment & Supplies industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
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 | AVY | LUV |
|---|---|---|
| Dividend Yield (TTM) | 1.95% | 2.11% |
| Dividend Payout Ratio (TTM) | 40.30% | 58.97% |
Valuation
Price-to-Earnings Ratio
AVY
20.71
Business Equipment & Supplies Industry
- Max
- 19.85
- Q3
- 17.85
- Median
- 14.65
- Q1
- 11.60
- Min
- 10.05
At 20.71, AVY’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Business Equipment & Supplies industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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
AVY
2.17
Business Equipment & Supplies Industry
- Max
- 2.08
- Q3
- 1.58
- Median
- 1.08
- Q1
- 0.82
- Min
- 0.55
AVY’s Forward PEG Ratio of 2.17 is exceptionally high for the Business Equipment & Supplies industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
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
AVY
1.64
Business Equipment & Supplies Industry
- Max
- 1.62
- Q3
- 1.57
- Median
- 0.91
- Q1
- 0.37
- Min
- 0.20
With a P/S Ratio of 1.64, AVY trades at a valuation that eclipses even the highest in the Business Equipment & Supplies industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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
AVY
6.67
Business Equipment & Supplies Industry
- Max
- 2.90
- Q3
- 2.90
- Median
- 1.32
- Q1
- 1.26
- Min
- 0.55
At 6.67, AVY’s P/B Ratio is at an extreme premium to the Business Equipment & Supplies industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
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 | AVY | LUV |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 20.71 | 36.45 |
| Forward PEG Ratio (TTM) | 2.17 | 0.97 |
| Price-to-Sales Ratio (P/S, TTM) | 1.64 | 0.70 |
| Price-to-Book Ratio (P/B, TTM) | 6.67 | 2.13 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 24.22 | -34.50 |
| EV-to-EBITDA (TTM) | 12.49 | 7.49 |
| EV-to-Sales (TTM) | 2.01 | 0.70 |