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

Updated on November 19, 2025

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

Company Profile

Symbol	DRS	LUV
Company Name	Leonardo DRS, Inc.	Southwest Airlines Co.
Country	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry	Aerospace & Defense	Passenger Airlines
Market Capitalization	9.19 billion USD	17.00 billion USD
Exchange	NasdaqGS	NYSE
Listing Date	June 24, 1985	January 2, 1980
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of DRS 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.

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

Historical Performance at a Glance

Symbol	DRS	LUV
5-Day Price Return	-2.16%	0.49%
13-Week Price Return	-16.39%	4.19%
26-Week Price Return	-14.27%	4.89%
52-Week Price Return	-3.57%	1.36%
Month-to-Date Return	-4.70%	8.32%
Year-to-Date Return	7.83%	-2.38%
10-Day Avg. Volume	1.41M	8.72M
3-Month Avg. Volume	1.14M	9.81M
3-Month Volatility	33.52%	34.95%
Beta	0.45	1.18

Profitability

Return on Equity (TTM)

DRS

10.22%

Aerospace & Defense Industry

Max: 43.89%
Q3: 23.64%
Median: 12.98%
Q1: 8.07%
Min: -2.55%

DRS’s Return on Equity of 10.22% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

LUV

4.27%

Passenger Airlines Industry

Max: 51.60%
Q3: 26.80%
Median: 15.05%
Q1: 3.96%
Min: -19.21%

LUV’s Return on Equity of 4.27% is on par with the norm for the Passenger Airlines industry, indicating its profitability relative to shareholder equity is typical for the sector.

DRS vs. LUV: A comparison of their Return on Equity (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Net Profit Margin (TTM)

DRS

7.43%

Aerospace & Defense Industry

Max: 14.96%
Q3: 9.50%
Median: 6.59%
Q1: 4.45%
Min: 1.01%

DRS’s Net Profit Margin of 7.43% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.

LUV

1.38%

Passenger Airlines Industry

Max: 18.35%
Q3: 8.99%
Median: 6.30%
Q1: 2.19%
Min: -5.16%

Falling into the lower quartile for the Passenger Airlines industry, LUV’s Net Profit Margin of 1.38% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

DRS vs. LUV: A comparison of their Net Profit Margin (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Operating Profit Margin (TTM)

DRS

9.58%

Aerospace & Defense Industry

Max: 17.97%
Q3: 12.09%
Median: 9.29%
Q1: 6.41%
Min: -1.59%

DRS’s Operating Profit Margin of 9.58% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.

LUV

1.14%

Passenger Airlines Industry

Max: 22.11%
Q3: 12.67%
Median: 8.27%
Q1: 4.07%
Min: -2.77%

LUV’s Operating Profit Margin of 1.14% 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.

DRS vs. LUV: A comparison of their Operating Profit Margin (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Profitability at a Glance

Symbol	DRS	LUV
Return on Equity (TTM)	10.22%	4.27%
Return on Assets (TTM)	6.38%	1.22%
Net Profit Margin (TTM)	7.43%	1.38%
Operating Profit Margin (TTM)	9.58%	1.14%
Gross Profit Margin (TTM)	23.40%	73.50%

Financial Strength

Current Ratio (MRQ)

DRS

2.00

Aerospace & Defense Industry

Max: 3.37
Q3: 2.01
Median: 1.22
Q1: 1.07
Min: 0.68

DRS’s Current Ratio of 2.00 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

LUV

0.49

Passenger Airlines Industry

Max: 1.46
Q3: 0.91
Median: 0.68
Q1: 0.51
Min: 0.19

LUV’s Current Ratio of 0.49 falls into the lower quartile for the Passenger Airlines industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

DRS vs. LUV: A comparison of their Current Ratio (MRQ) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Debt-to-Equity Ratio (MRQ)

DRS

0.13

Aerospace & Defense Industry

Max: 1.89
Q3: 0.99
Median: 0.63
Q1: 0.39
Min: 0.03

Falling into the lower quartile for the Aerospace & Defense industry, DRS’s Debt-to-Equity Ratio of 0.13 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

LUV

0.53

Passenger Airlines Industry

Max: 10.23
Q3: 4.67
Median: 1.26
Q1: 0.81
Min: 0.00

Falling into the lower quartile for the Passenger Airlines industry, LUV’s Debt-to-Equity Ratio of 0.53 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

DRS vs. LUV: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Interest Coverage Ratio (TTM)

DRS

13.57

Aerospace & Defense Industry

Max: 29.86
Q3: 19.49
Median: 7.09
Q1: 2.62
Min: -7.63

DRS’s Interest Coverage Ratio of 13.57 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

LUV

9.27

Passenger Airlines Industry

Max: 22.60
Q3: 17.27
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.

DRS vs. LUV: A comparison of their Interest Coverage Ratio (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Financial Strength at a Glance

Symbol	DRS	LUV
Current Ratio (MRQ)	2.00	0.49
Quick Ratio (MRQ)	1.60	0.38
Debt-to-Equity Ratio (MRQ)	0.13	0.53
Interest Coverage Ratio (TTM)	13.57	9.27

Growth

Revenue Growth

DRS 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

DRS 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)

DRS

0.79%

Aerospace & Defense Industry

Max: 2.87%
Q3: 1.46%
Median: 0.58%
Q1: 0.10%
Min: 0.00%

DRS’s Dividend Yield of 0.79% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.

LUV

2.36%

Passenger Airlines Industry

Max: 7.00%
Q3: 3.61%
Median: 1.57%
Q1: 0.00%
Min: 0.00%

LUV’s Dividend Yield of 2.36% is consistent with its peers in the Passenger Airlines industry, providing a dividend return that is standard for its sector.

DRS vs. LUV: A comparison of their Dividend Yield (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Dividend Payout Ratio (TTM)

DRS

40.91%

Aerospace & Defense Industry

Max: 110.40%
Q3: 51.46%
Median: 20.20%
Q1: 4.21%
Min: 0.00%

DRS’s Dividend Payout Ratio of 40.91% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

LUV

55.49%

Passenger Airlines Industry

Max: 93.13%
Q3: 51.43%
Median: 14.52%
Q1: 0.00%
Min: 0.00%

LUV’s Dividend Payout Ratio of 55.49% 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.

DRS vs. LUV: A comparison of their Dividend Payout Ratio (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Dividend at a Glance

Symbol	DRS	LUV
Dividend Yield (TTM)	0.79%	2.36%
Dividend Payout Ratio (TTM)	40.91%	55.49%

Valuation

Price-to-Earnings Ratio (TTM)

DRS

34.41

Aerospace & Defense Industry

Max: 94.22
Q3: 53.31
Median: 32.27
Q1: 24.64
Min: 14.57

DRS’s P/E Ratio of 34.41 is within the middle range for the Aerospace & Defense 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

44.78

Passenger Airlines Industry

Max: 13.99
Q3: 10.90
Median: 8.70
Q1: 6.40
Min: 2.58

At 44.78, 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.

DRS vs. LUV: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Price-to-Sales Ratio (TTM)

DRS

2.56

Aerospace & Defense Industry

Max: 7.20
Q3: 3.95
Median: 2.35
Q1: 1.71
Min: 0.32

DRS’s P/S Ratio of 2.56 aligns with the market consensus for the Aerospace & Defense industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

LUV

0.62

Passenger Airlines Industry

Max: 1.48
Q3: 0.83
Median: 0.61
Q1: 0.37
Min: 0.08

LUV’s P/S Ratio of 0.62 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.

DRS vs. LUV: A comparison of their Price-to-Sales Ratio (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Price-to-Book Ratio (MRQ)

DRS

4.56

Aerospace & Defense Industry

Max: 18.61
Q3: 9.58
Median: 5.45
Q1: 3.11
Min: 0.94

DRS’s P/B Ratio of 4.56 is within the conventional range for the Aerospace & Defense 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

2.16

Passenger Airlines Industry

Max: 3.44
Q3: 3.03
Median: 2.07
Q1: 1.28
Min: 0.49

LUV’s P/B Ratio of 2.16 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.

DRS vs. LUV: A comparison of their Price-to-Book Ratio (MRQ) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Valuation at a Glance

Symbol	DRS	LUV
Price-to-Earnings Ratio (TTM)	34.41	44.78
Price-to-Sales Ratio (TTM)	2.56	0.62
Price-to-Book Ratio (MRQ)	4.56	2.16
Price-to-Free Cash Flow Ratio (TTM)	18.57	45.26