CNI vs. LUV: Canadian National Railway vs. Southwest Airlines Stock Comparison

November 11, 2026

How do Canadian National Railway (CNI) and Southwest Airlines (LUV) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Canadian National Railway (CNI) and Southwest Airlines (LUV) both fall under the Transportation industry group, but CNI is classified in Ground Transportation while LUV is classified in Passenger Airlines.

Company profile comparison for Canadian National Railway (CNI) and Southwest Airlines (LUV)
Profile Item	CNI	LUV
Name	Canadian National Railway Co.	Southwest Airlines Co.
Country/Region	Canada	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Transportation	Transportation
GICS Industry	Ground Transportation	Passenger Airlines
GICS Sub-Industry	Rail Transportation	Passenger Airlines
Market Capitalization	74.40 billion USD	21.76 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	November 26, 1996	January 2, 1980
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

CNI

LUV

GSPC

Canadian National Railway (CNI) vs. Southwest Airlines (LUV), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Canadian National Railway (CNI) and Southwest Airlines (LUV). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Canadian National Railway (CNI) and Southwest Airlines (LUV). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Canadian National Railway (CNI) and Southwest Airlines (LUV)
Metric	CNI	LUV
Total Return (1Y)	35.29%	44.35%
Total Return (3Y, Annualized)	6.80%	28.08%
Total Return (5Y, Annualized)	1.12%	-0.31%

Risk Profile

Drawdown History

CNI

LUV

GSPC

Canadian National Railway (CNI) vs. Southwest Airlines (LUV), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Canadian National Railway (CNI) and Southwest Airlines (LUV). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Canadian National Railway (CNI) and Southwest Airlines (LUV)
Metric	CNI	LUV
Volatility (1Y, Annualized)	22.27%	44.46%
Beta (5Y)	0.89	1.19
Max Drawdown (5Y)	-29.13%	-55.39%
Avg. Volume (3M)	1.22M	5.76M

Risk-Adjusted Performance

Risk-Return Positioning

CNI and LUV are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Canadian National Railway (CNI) and Southwest Airlines (LUV)
Metric	CNI	LUV
Sharpe Ratio (1Y)	1.39	0.90
Sortino Ratio (1Y)	2.00	1.51

Profitability

ROE (TTM)

Canadian National Railway (CNI) at 22.45% sits in the top ROE quartile, while Southwest Airlines (LUV) at 13.94% is closer to the peer norm — stronger capital efficiency for CNI.

CNI

Transportation industry group

22.45%

Max: 45.08%
CNI: 22.45%
Q3: 22.02%
Median: 13.94%
Q1: 2.89%
Min: -10.45%

LUV

Transportation industry group

13.94%

Max: 45.08%
Q3: 22.02%
LUV: 13.94%
Median: 13.94%
Q1: 2.89%
Min: -10.45%

Canadian National Railway (CNI) vs. Southwest Airlines (LUV): A comparison of their ROE against the Transportation industry group benchmark.

Net Margin (TTM)

Canadian National Railway (CNI) at 26.42% retains a top-quartile share of revenue as profit, ahead of Southwest Airlines (LUV) at 3.34%, which keeps about the industry-typical share.

CNI

Transportation industry group

26.42%

Max: 50.36%
CNI: 26.42%
Q3: 21.18%
Median: 5.58%
Q1: 1.55%
Min: -11.37%

LUV

Transportation industry group

3.34%

Max: 50.36%
Q3: 21.18%
Median: 5.58%
LUV: 3.34%
Q1: 1.55%
Min: -11.37%

Canadian National Railway (CNI) vs. Southwest Airlines (LUV): A comparison of their net margin against the Transportation industry group benchmark.

Operating Margin (TTM)

Canadian National Railway (CNI) at 41.52% carries a top-quartile operating margin, while Southwest Airlines (LUV) at 4.49% operates in the bottom quartile.

CNI

Transportation industry group

41.52%

Max: 59.18%
CNI: 41.52%
Q3: 29.30%
Median: 11.50%
Q1: 4.62%
Min: -8.91%

LUV

Transportation industry group

4.49%

Max: 59.18%
Q3: 29.30%
Median: 11.50%
Q1: 4.62%
LUV: 4.49%
Min: -8.91%

Canadian National Railway (CNI) vs. Southwest Airlines (LUV): A comparison of their operating margin against the Transportation industry group benchmark.

Profitability Metrics

Profitability metrics for Canadian National Railway (CNI) and Southwest Airlines (LUV)
Metric	CNI	LUV
ROE (TTM)	22.45%	13.94%
ROA (TTM)	7.87%	3.05%
Net Margin (TTM)	26.42%	3.34%
Operating Margin (TTM)	41.52%	4.49%
Gross Margin (TTM)	55.44%	22.14%

Growth

Revenue Growth

Both Canadian National Railway (CNI) at 1.51% and Southwest Airlines (LUV) at 2.11% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Canadian National Railway (CNI) vs. Southwest Airlines (LUV): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Canadian National Railway (CNI) at 7.99% and Southwest Airlines (LUV) at 3.95% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Canadian National Railway (CNI) vs. Southwest Airlines (LUV): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Canadian National Railway (CNI) and Southwest Airlines (LUV)
Metric	CNI	LUV
Revenue Growth (YoY)	1.51%	2.11%
Revenue Growth (3Y CAGR)	0.38%	5.63%
EPS Growth (YoY)	7.99%	3.95%
EPS Growth (3Y CAGR)	0.58%	-3.16%

Financial Strength

Current Ratio (MRQ)

Canadian National Railway (CNI) at 0.82 keeps current ratio within its industry’s typical mid-range, while Southwest Airlines (LUV) at 0.47 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for LUV.

CNI

Transportation industry group

0.82

Max: 2.58
Q3: 1.62
Median: 1.16
CNI: 0.82
Q1: 0.78
Min: 0.22

LUV

Transportation industry group

0.47

Max: 2.58
Q3: 1.62
Median: 1.16
Q1: 0.78
LUV: 0.47
Min: 0.22

Canadian National Railway (CNI) vs. Southwest Airlines (LUV): A comparison of their current ratio against the Transportation industry group benchmark.

Debt / Equity (MRQ)

Both Canadian National Railway (CNI) at 1.09 and Southwest Airlines (LUV) at 0.94 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

CNI

Transportation industry group

1.09

Max: 2.75
Q3: 1.37
CNI: 1.09
Median: 0.78
Q1: 0.35
Min: 0.00

LUV

Transportation industry group

0.94

Max: 2.75
Q3: 1.37
LUV: 0.94
Median: 0.78
Q1: 0.35
Min: 0.00

Canadian National Railway (CNI) vs. Southwest Airlines (LUV): A comparison of their debt-to-equity ratio against the Transportation industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Canadian National Railway (CNI) and Southwest Airlines (LUV)
Metric	CNI	LUV
Current Ratio (MRQ)	0.82	0.47
Debt / Equity (MRQ)	1.09	0.94
Net Debt / EBITDA	2.46	1.21

Dividends

Dividend Yield (TTM)

Canadian National Railway (CNI) at 2.87% delivers top-quartile income for its industry, while Southwest Airlines (LUV) at 1.62% pays a more typical yield — both are credible income propositions, CNI the richer one.

CNI

Transportation industry group

2.87%

Max: 4.68%
CNI: 2.87%
Q3: 1.99%
Median: 0.74%
Q1: 0.00%
Min: 0.00%

LUV

Transportation industry group

1.62%

Max: 4.68%
Q3: 1.99%
LUV: 1.62%
Median: 0.74%
Q1: 0.00%
Min: 0.00%

Canadian National Railway (CNI) vs. Southwest Airlines (LUV): A comparison of their dividend yield against the Transportation industry group benchmark.

Dividend Payout Ratio (TTM)

Southwest Airlines (LUV) at 35.12% pays out a band-typical share of earnings, while Canadian National Railway (CNI) at 45.63% distributes more than its industry norm — less retained, thinner cover.

CNI

Transportation industry group

45.63%

Max: 100.89%
CNI: 45.63%
Q3: 41.68%
Median: 20.43%
Q1: 0.00%
Min: 0.00%

LUV

Transportation industry group

35.12%

Max: 100.89%
Q3: 41.68%
LUV: 35.12%
Median: 20.43%
Q1: 0.00%
Min: 0.00%

Canadian National Railway (CNI) vs. Southwest Airlines (LUV): A comparison of their payout ratio against the Transportation industry group benchmark.

Dividend Metrics

Dividend metrics for Canadian National Railway (CNI) and Southwest Airlines (LUV)
Metric	CNI	LUV
Dividend Yield (TTM)	2.87%	1.62%
Dividend Payout Ratio (TTM)	45.63%	35.12%

Valuation

P/E Ratio (TTM)

Both Canadian National Railway (CNI) at 21.61 and Southwest Airlines (LUV) at 21.68 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

CNI

Transportation industry group

21.61

Max: 46.76
Q3: 30.87
CNI: 21.61
Median: 20.58
Q1: 10.44
Min: 0.00

LUV

Transportation industry group

21.68

Max: 46.76
Q3: 30.87
LUV: 21.68
Median: 20.58
Q1: 10.44
Min: 0.00

Canadian National Railway (CNI) vs. Southwest Airlines (LUV): A comparison of their P/E ratio against the Transportation industry group benchmark.

P/S Ratio (TTM)

Southwest Airlines (LUV) at 0.69 is priced about in line with its industry on P/S ratio, while Canadian National Railway (CNI) at 4.05 sits in the pricier quartile — CNI costs more per dollar of sales.

CNI

Transportation industry group

4.05

Max: 4.35
CNI: 4.05
Q3: 2.07
Median: 0.93
Q1: 0.53
Min: 0.04

LUV

Transportation industry group

0.69

Max: 4.35
Q3: 2.07
Median: 0.93
LUV: 0.69
Q1: 0.53
Min: 0.04

Canadian National Railway (CNI) vs. Southwest Airlines (LUV): A comparison of their P/S ratio against the Transportation industry group benchmark.

P/B Ratio (MRQ)

Southwest Airlines (LUV) at 2.97 is valued about in line with its industry on P/B ratio, while Canadian National Railway (CNI) at 4.77 carries an above-peer premium to book — CNI is pricier on assets.

CNI

Transportation industry group

4.77

Max: 6.29
CNI: 4.77
Q3: 3.39
Median: 1.90
Q1: 1.03
Min: -2.07

LUV

Transportation industry group

2.97

Max: 6.29
Q3: 3.39
LUV: 2.97
Median: 1.90
Q1: 1.03
Min: -2.07

Canadian National Railway (CNI) vs. Southwest Airlines (LUV): A comparison of their P/B ratio against the Transportation industry group benchmark.

Valuation Metrics

Valuation metrics for Canadian National Railway (CNI) and Southwest Airlines (LUV)
Metric	CNI	LUV
P/E Ratio (TTM)	21.61	21.68
P/S Ratio (TTM)	4.05	0.69
P/B Ratio (MRQ)	4.77	2.97
Free Cash Flow Yield (TTM)	3.30%	-2.82%