CNH vs. LUV: A Head-to-Head Stock Comparison

Updated on August 20, 2025

Here’s a clear look at CNH and LUV, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Symbol	CNH	LUV
Company Name	CNH Industrial N.V.	Southwest Airlines Co.
Country	United Kingdom	United States
GICS Sector	Industrials	Industrials
GICS Industry	Machinery	Passenger Airlines
Market Capitalization	16.05 billion USD	16.27 billion USD
Exchange	NYSE	NYSE
Listing Date	September 30, 2013	January 2, 1980
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of CNH 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.

CNH vs. LUV: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	CNH	LUV
5-Day Price Return	3.13%	4.77%
13-Week Price Return	-3.53%	-0.96%
26-Week Price Return	5.34%	-0.39%
52-Week Price Return	35.77%	22.03%
Month-to-Date Return	-1.00%	0.13%
Year-to-Date Return	13.24%	-7.88%
10-Day Avg. Volume	12.88M	9.27M
3-Month Avg. Volume	18.37M	12.50M
3-Month Volatility	28.28%	40.35%
Beta	1.55	1.23

Profitability

Return on Equity (TTM)

CNH

10.67%

Machinery Industry

Max: 34.68%
Q3: 19.06%
Median: 13.13%
Q1: 8.53%
Min: -4.87%

CNH’s Return on Equity of 10.67% is on par with the norm for the Machinery industry, indicating its profitability relative to shareholder equity is typical for the sector.

LUV

4.11%

Passenger Airlines Industry

Max: 49.96%
Q3: 28.15%
Median: 15.41%
Q1: 8.29%
Min: -11.01%

LUV’s Return on Equity of 4.11% is in the lower quartile for the Passenger Airlines industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

CNH vs. LUV: A comparison of their Return on Equity (TTM) against their respective Machinery and Passenger Airlines industry benchmarks.

Net Profit Margin (TTM)

CNH

4.55%

Machinery Industry

Max: 19.74%
Q3: 11.24%
Median: 8.13%
Q1: 5.38%
Min: -1.11%

Falling into the lower quartile for the Machinery industry, CNH’s Net Profit Margin of 4.55% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

LUV

1.43%

Passenger Airlines Industry

Max: 17.65%
Q3: 8.90%
Median: 5.80%
Q1: 2.02%
Min: -3.12%

Falling into the lower quartile for the Passenger Airlines industry, LUV’s Net Profit Margin of 1.43% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

CNH vs. LUV: A comparison of their Net Profit Margin (TTM) against their respective Machinery and Passenger Airlines industry benchmarks.

Operating Profit Margin (TTM)

CNH

17.85%

Machinery Industry

Max: 26.63%
Q3: 16.15%
Median: 11.27%
Q1: 7.72%
Min: -4.91%

An Operating Profit Margin of 17.85% places CNH in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

LUV

1.15%

Passenger Airlines Industry

Max: 22.47%
Q3: 12.33%
Median: 8.62%
Q1: 4.43%
Min: -2.88%

LUV’s Operating Profit Margin of 1.15% is in the lower quartile for the Passenger Airlines industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

CNH vs. LUV: A comparison of their Operating Profit Margin (TTM) against their respective Machinery and Passenger Airlines industry benchmarks.

Profitability at a Glance

Symbol	CNH	LUV
Return on Equity (TTM)	10.67%	4.11%
Return on Assets (TTM)	1.91%	1.20%
Net Profit Margin (TTM)	4.55%	1.43%
Operating Profit Margin (TTM)	17.85%	1.15%
Gross Profit Margin (TTM)	32.40%	73.31%

Financial Strength

Current Ratio (MRQ)

CNH

1.24

Machinery Industry

Max: 3.83
Q3: 2.32
Median: 1.72
Q1: 1.28
Min: 0.78

CNH’s Current Ratio of 1.24 falls into the lower quartile for the Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

LUV

0.56

Passenger Airlines Industry

Max: 1.46
Q3: 0.94
Median: 0.76
Q1: 0.54
Min: 0.17

LUV’s Current Ratio of 0.56 aligns with the median group of the Passenger Airlines industry, indicating that its short-term liquidity is in line with its sector peers.

CNH vs. LUV: A comparison of their Current Ratio (MRQ) against their respective Machinery and Passenger Airlines industry benchmarks.

Debt-to-Equity Ratio (MRQ)

CNH

3.55

Machinery Industry

Max: 1.49
Q3: 0.75
Median: 0.44
Q1: 0.26
Min: 0.00

With a Debt-to-Equity Ratio of 3.55, CNH operates with exceptionally high leverage compared to the Machinery industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

LUV

0.51

Passenger Airlines Industry

Max: 9.80
Q3: 4.82
Median: 1.30
Q1: 0.89
Min: 0.00

Falling into the lower quartile for the Passenger Airlines industry, LUV’s Debt-to-Equity Ratio of 0.51 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

CNH vs. LUV: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Machinery and Passenger Airlines industry benchmarks.

Interest Coverage Ratio (TTM)

CNH

1.93

Machinery Industry

Max: 67.55
Q3: 33.79
Median: 13.87
Q1: 7.97
Min: -1.43

In the lower quartile for the Machinery industry, CNH’s Interest Coverage Ratio of 1.93 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

LUV

9.27

Passenger Airlines Industry

Max: 22.60
Q3: 16.29
Median: 6.75
Q1: 1.94
Min: -8.55

LUV’s Interest Coverage Ratio of 9.27 is positioned comfortably within the norm for the Passenger Airlines industry, indicating a standard and healthy capacity to cover its interest payments.

CNH vs. LUV: A comparison of their Interest Coverage Ratio (TTM) against their respective Machinery and Passenger Airlines industry benchmarks.

Financial Strength at a Glance

Symbol	CNH	LUV
Current Ratio (MRQ)	1.24	0.56
Quick Ratio (MRQ)	0.45	0.45
Debt-to-Equity Ratio (MRQ)	3.55	0.51
Interest Coverage Ratio (TTM)	1.93	9.27

Growth

Revenue Growth

CNH vs. LUV: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

CNH vs. LUV: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

CNH

2.08%

Machinery Industry

Max: 5.32%
Q3: 2.84%
Median: 1.87%
Q1: 1.09%
Min: 0.00%

CNH’s Dividend Yield of 2.08% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.

LUV

2.65%

Passenger Airlines Industry

Max: 6.71%
Q3: 3.95%
Median: 1.10%
Q1: 0.00%
Min: 0.00%

LUV’s Dividend Yield of 2.65% is consistent with its peers in the Passenger Airlines industry, providing a dividend return that is standard for its sector.

CNH vs. LUV: A comparison of their Dividend Yield (TTM) against their respective Machinery and Passenger Airlines industry benchmarks.

Dividend Payout Ratio (TTM)

CNH

40.58%

Machinery Industry

Max: 202.17%
Q3: 98.65%
Median: 55.54%
Q1: 29.03%
Min: 0.00%

CNH’s Dividend Payout Ratio of 40.58% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

LUV

59.15%

Passenger Airlines Industry

Max: 71.59%
Q3: 38.54%
Median: 8.16%
Q1: 0.00%
Min: 0.00%

LUV’s Dividend Payout Ratio of 59.15% is in the upper quartile for the Passenger Airlines 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.

CNH vs. LUV: A comparison of their Dividend Payout Ratio (TTM) against their respective Machinery and Passenger Airlines industry benchmarks.

Dividend at a Glance

Symbol	CNH	LUV
Dividend Yield (TTM)	2.08%	2.65%
Dividend Payout Ratio (TTM)	40.58%	59.15%

Valuation

Price-to-Earnings Ratio (TTM)

CNH

19.51

Machinery Industry

Max: 53.66
Q3: 31.29
Median: 22.00
Q1: 16.18
Min: 7.00

CNH’s P/E Ratio of 19.51 is within the middle range for the Machinery 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

41.16

Passenger Airlines Industry

Max: 13.29
Q3: 11.94
Median: 8.78
Q1: 7.42
Min: 3.07

At 41.16, LUV’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Passenger Airlines industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

CNH vs. LUV: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Machinery and Passenger Airlines industry benchmarks.

Price-to-Sales Ratio (TTM)

CNH

0.89

Machinery Industry

Max: 5.04
Q3: 2.72
Median: 1.67
Q1: 1.04
Min: 0.24

In the lower quartile for the Machinery industry, CNH’s P/S Ratio of 0.89 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

LUV

0.59

Passenger Airlines Industry

Max: 1.09
Q3: 0.74
Median: 0.61
Q1: 0.44
Min: 0.09

LUV’s P/S Ratio of 0.59 aligns with the market consensus for the Passenger Airlines industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

CNH vs. LUV: A comparison of their Price-to-Sales Ratio (TTM) against their respective Machinery and Passenger Airlines industry benchmarks.

Price-to-Book Ratio (MRQ)

CNH

2.10

Machinery Industry

Max: 7.23
Q3: 3.90
Median: 2.52
Q1: 1.47
Min: 0.49

CNH’s P/B Ratio of 2.10 is within the conventional range for the Machinery 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

2.31

Passenger Airlines Industry

Max: 3.44
Q3: 2.89
Median: 1.84
Q1: 1.22
Min: 0.56

LUV’s P/B Ratio of 2.31 is within the conventional range for the Passenger Airlines 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.

CNH vs. LUV: A comparison of their Price-to-Book Ratio (MRQ) against their respective Machinery and Passenger Airlines industry benchmarks.

Valuation at a Glance

Symbol	CNH	LUV
Price-to-Earnings Ratio (TTM)	19.51	41.16
Price-to-Sales Ratio (TTM)	0.89	0.59
Price-to-Book Ratio (MRQ)	2.10	2.31
Price-to-Free Cash Flow Ratio (TTM)	7.18	43.02