CP vs. LUV: Canadian Pacific Kansas City vs. Southwest Airlines Stock Comparison

November 11, 2026

How do Canadian Pacific Kansas City (CP) 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 Pacific Kansas City (CP) and Southwest Airlines (LUV) both fall under the Transportation industry group, but CP is classified in Ground Transportation while LUV is classified in Passenger Airlines.

Company profile comparison for Canadian Pacific Kansas City (CP) and Southwest Airlines (LUV)
Profile Item	CP	LUV
Name	Canadian Pacific Kansas City Ltd.	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	80.15 billion USD	21.76 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	December 30, 1983	January 2, 1980
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

LUV

GSPC

Canadian Pacific Kansas City (CP) 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 Pacific Kansas City (CP) and Southwest Airlines (LUV). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Canadian Pacific Kansas City (CP) 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 Pacific Kansas City (CP) and Southwest Airlines (LUV)
Metric	CP	LUV
Total Return (1Y)	32.98%	44.35%
Total Return (3Y, Annualized)	9.54%	28.08%
Total Return (5Y, Annualized)	4.57%	-0.31%

Risk Profile

Drawdown History

LUV

GSPC

Canadian Pacific Kansas City (CP) 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 Pacific Kansas City (CP) 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 Pacific Kansas City (CP) and Southwest Airlines (LUV)
Metric	CP	LUV
Volatility (1Y, Annualized)	22.89%	44.46%
Beta (5Y)	1.02	1.19
Max Drawdown (5Y)	-25.88%	-55.39%
Avg. Volume (3M)	2.24M	5.76M

Risk-Adjusted Performance

Risk-Return Positioning

CP 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 Pacific Kansas City (CP) and Southwest Airlines (LUV)
Metric	CP	LUV
Sharpe Ratio (1Y)	1.25	0.90
Sortino Ratio (1Y)	1.93	1.51

Profitability

ROE (TTM)

Both Canadian Pacific Kansas City (CP) at 8.27% and Southwest Airlines (LUV) at 13.94% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

CP

Transportation industry group

8.27%

Max: 45.08%
Q3: 22.02%
Median: 13.94%
CP: 8.27%
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 Pacific Kansas City (CP) vs. Southwest Airlines (LUV): A comparison of their ROE against the Transportation industry group benchmark.

Net Margin (TTM)

Canadian Pacific Kansas City (CP) at 24.14% retains a top-quartile share of revenue as profit, ahead of Southwest Airlines (LUV) at 3.34%, which keeps about the industry-typical share.

CP

Transportation industry group

24.14%

Max: 50.36%
CP: 24.14%
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 Pacific Kansas City (CP) vs. Southwest Airlines (LUV): A comparison of their net margin against the Transportation industry group benchmark.

Operating Margin (TTM)

Canadian Pacific Kansas City (CP) at 38.56% carries a top-quartile operating margin, while Southwest Airlines (LUV) at 4.49% operates in the bottom quartile.

CP

Transportation industry group

38.56%

Max: 59.18%
CP: 38.56%
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 Pacific Kansas City (CP) vs. Southwest Airlines (LUV): A comparison of their operating margin against the Transportation industry group benchmark.

Profitability Metrics

Profitability metrics for Canadian Pacific Kansas City (CP) and Southwest Airlines (LUV)
Metric	CP	LUV
ROE (TTM)	8.27%	13.94%
ROA (TTM)	4.52%	3.05%
Net Margin (TTM)	24.14%	3.34%
Operating Margin (TTM)	38.56%	4.49%
Gross Margin (TTM)	52.76%	22.14%

Growth

Revenue Growth

Both Canadian Pacific Kansas City (CP) at 3.66% 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 Pacific Kansas City (CP) vs. Southwest Airlines (LUV): A comparison of their Revenue Growth across different time periods.

EPS Growth

Canadian Pacific Kansas City (CP) at 13.32% sits in the top EPS growth quartile, while Southwest Airlines (LUV) at 3.95% is closer to the peer norm — faster per-share earnings growth for CP.

Canadian Pacific Kansas City (CP) vs. Southwest Airlines (LUV): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Canadian Pacific Kansas City (CP) and Southwest Airlines (LUV)
Metric	CP	LUV
Revenue Growth (YoY)	3.66%	2.11%
Revenue Growth (3Y CAGR)	19.60%	5.63%
EPS Growth (YoY)	13.32%	3.95%
EPS Growth (3Y CAGR)	6.16%	-3.16%

Financial Strength

Current Ratio (MRQ)

Both Canadian Pacific Kansas City (CP) at 0.52 and Southwest Airlines (LUV) at 0.47 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

CP

Transportation industry group

0.52

Max: 2.58
Q3: 1.62
Median: 1.16
Q1: 0.78
CP: 0.52
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 Pacific Kansas City (CP) vs. Southwest Airlines (LUV): A comparison of their current ratio against the Transportation industry group benchmark.

Debt / Equity (MRQ)

Both Canadian Pacific Kansas City (CP) at 0.55 and Southwest Airlines (LUV) at 0.94 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

CP

Transportation industry group

0.55

Max: 2.75
Q3: 1.37
Median: 0.78
CP: 0.55
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 Pacific Kansas City (CP) 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 Pacific Kansas City (CP) and Southwest Airlines (LUV)
Metric	CP	LUV
Current Ratio (MRQ)	0.52	0.47
Debt / Equity (MRQ)	0.55	0.94
Net Debt / EBITDA	3.01	1.21

Dividends

Dividend Yield (TTM)

Both Canadian Pacific Kansas City (CP) at 1.06% and Southwest Airlines (LUV) at 1.62% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

CP

Transportation industry group

1.06%

Max: 4.68%
Q3: 1.99%
CP: 1.06%
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 Pacific Kansas City (CP) vs. Southwest Airlines (LUV): A comparison of their dividend yield against the Transportation industry group benchmark.

Dividend Payout Ratio (TTM)

Both Canadian Pacific Kansas City (CP) at 22.91% and Southwest Airlines (LUV) at 35.12% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.

CP

Transportation industry group

22.91%

Max: 100.89%
Q3: 41.68%
CP: 22.91%
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 Pacific Kansas City (CP) vs. Southwest Airlines (LUV): A comparison of their payout ratio against the Transportation industry group benchmark.

Dividend Metrics

Dividend metrics for Canadian Pacific Kansas City (CP) and Southwest Airlines (LUV)
Metric	CP	LUV
Dividend Yield (TTM)	1.06%	1.62%
Dividend Payout Ratio (TTM)	22.91%	35.12%

Valuation

P/E Ratio (TTM)

Both Canadian Pacific Kansas City (CP) at 29.54 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.

CP

Transportation industry group

29.54

Max: 46.76
Q3: 30.87
CP: 29.54
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 Pacific Kansas City (CP) 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 prices around its industry’s typical P/S ratio, while Canadian Pacific Kansas City (CP) at 5.01 clears its benchmark range — CP looks notably rich on sales.

CP

Transportation industry group

5.01

CP: 5.01
Max: 4.35
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 Pacific Kansas City (CP) vs. Southwest Airlines (LUV): A comparison of their P/S ratio against the Transportation industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Canadian Pacific Kansas City (CP) at 2.46 and Southwest Airlines (LUV) at 2.97 are valued close to their industries’ norm against book — neither stands out from peers.

CP

Transportation industry group

2.46

Max: 6.29
Q3: 3.39
CP: 2.46
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 Pacific Kansas City (CP) vs. Southwest Airlines (LUV): A comparison of their P/B ratio against the Transportation industry group benchmark.

Valuation Metrics

Valuation metrics for Canadian Pacific Kansas City (CP) and Southwest Airlines (LUV)
Metric	CP	LUV
P/E Ratio (TTM)	29.54	21.68
P/S Ratio (TTM)	5.01	0.69
P/B Ratio (MRQ)	2.46	2.97
Free Cash Flow Yield (TTM)	3.42%	-2.82%