EMR vs. LUV: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at EMR and LUV, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | EMR | LUV |
|---|---|---|
| Company Name | Emerson Electric Co. | Southwest Airlines Co. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Electrical Equipment | Passenger Airlines |
| Market Capitalization | 75.98 billion USD | 16.27 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | June 1, 1972 | January 2, 1980 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of EMR 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.
Historical Performance at a Glance
| Symbol | EMR | LUV |
|---|---|---|
| 5-Day Price Return | 1.63% | 4.77% |
| 13-Week Price Return | 13.06% | -0.96% |
| 26-Week Price Return | 5.90% | -0.39% |
| 52-Week Price Return | 30.98% | 22.03% |
| Month-to-Date Return | -7.22% | 0.13% |
| Year-to-Date Return | 8.93% | -7.88% |
| 10-Day Avg. Volume | 4.83M | 9.27M |
| 3-Month Avg. Volume | 3.30M | 12.50M |
| 3-Month Volatility | 23.55% | 40.35% |
| Beta | 1.30 | 1.23 |
Profitability
Return on Equity (TTM)
EMR
13.06%
Electrical Equipment Industry
- Max
- 37.56%
- Q3
- 20.60%
- Median
- 14.38%
- Q1
- 4.35%
- Min
- 0.90%
EMR’s Return on Equity of 13.06% is on par with the norm for the Electrical Equipment 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.
Net Profit Margin (TTM)
EMR
14.92%
Electrical Equipment Industry
- Max
- 20.43%
- Q3
- 10.97%
- Median
- 6.07%
- Q1
- 3.16%
- Min
- 0.29%
A Net Profit Margin of 14.92% places EMR in the upper quartile for the Electrical Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
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.
Operating Profit Margin (TTM)
EMR
17.42%
Electrical Equipment Industry
- Max
- 26.20%
- Q3
- 14.31%
- Median
- 7.54%
- Q1
- 3.77%
- Min
- -5.64%
An Operating Profit Margin of 17.42% places EMR in the upper quartile for the Electrical Equipment 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.
Profitability at a Glance
| Symbol | EMR | LUV |
|---|---|---|
| Return on Equity (TTM) | 13.06% | 4.11% |
| Return on Assets (TTM) | 6.19% | 1.20% |
| Net Profit Margin (TTM) | 14.92% | 1.43% |
| Operating Profit Margin (TTM) | 17.42% | 1.15% |
| Gross Profit Margin (TTM) | 52.70% | 73.31% |
Financial Strength
Current Ratio (MRQ)
EMR
0.85
Electrical Equipment Industry
- Max
- 3.02
- Q3
- 1.99
- Median
- 1.41
- Q1
- 1.07
- Min
- 0.80
EMR’s Current Ratio of 0.85 falls into the lower quartile for the Electrical Equipment 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.
Debt-to-Equity Ratio (MRQ)
EMR
0.72
Electrical Equipment Industry
- Max
- 1.44
- Q3
- 0.99
- Median
- 0.56
- Q1
- 0.24
- Min
- 0.00
EMR’s Debt-to-Equity Ratio of 0.72 is typical for the Electrical Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
Interest Coverage Ratio (TTM)
EMR
18.57
Electrical Equipment Industry
- Max
- 36.12
- Q3
- 19.29
- Median
- 9.38
- Q1
- 1.16
- Min
- -10.92
EMR’s Interest Coverage Ratio of 18.57 is positioned comfortably within the norm for the Electrical Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
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.
Financial Strength at a Glance
| Symbol | EMR | LUV |
|---|---|---|
| Current Ratio (MRQ) | 0.85 | 0.56 |
| Quick Ratio (MRQ) | 0.63 | 0.45 |
| Debt-to-Equity Ratio (MRQ) | 0.72 | 0.51 |
| Interest Coverage Ratio (TTM) | 18.57 | 9.27 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
EMR
1.59%
Electrical Equipment Industry
- Max
- 2.20%
- Q3
- 1.53%
- Median
- 1.01%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.59%, EMR offers a more attractive income stream than most of its peers in the Electrical Equipment industry, signaling a strong commitment to shareholder returns.
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.
Dividend Payout Ratio (TTM)
EMR
45.06%
Electrical Equipment Industry
- Max
- 119.44%
- Q3
- 51.87%
- Median
- 27.71%
- Q1
- 0.00%
- Min
- 0.00%
EMR’s Dividend Payout Ratio of 45.06% is within the typical range for the Electrical Equipment 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.
Dividend at a Glance
| Symbol | EMR | LUV |
|---|---|---|
| Dividend Yield (TTM) | 1.59% | 2.65% |
| Dividend Payout Ratio (TTM) | 45.06% | 59.15% |
Valuation
Price-to-Earnings Ratio (TTM)
EMR
28.34
Electrical Equipment Industry
- Max
- 81.85
- Q3
- 44.17
- Median
- 27.61
- Q1
- 18.62
- Min
- 7.73
EMR’s P/E Ratio of 28.34 is within the middle range for the Electrical Equipment 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.
Price-to-Sales Ratio (TTM)
EMR
4.23
Electrical Equipment Industry
- Max
- 8.18
- Q3
- 4.02
- Median
- 1.84
- Q1
- 0.97
- Min
- 0.44
EMR’s P/S Ratio of 4.23 is in the upper echelon for the Electrical Equipment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
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.
Price-to-Book Ratio (MRQ)
EMR
3.77
Electrical Equipment Industry
- Max
- 8.50
- Q3
- 4.53
- Median
- 3.39
- Q1
- 1.70
- Min
- 0.51
EMR’s P/B Ratio of 3.77 is within the conventional range for the Electrical Equipment 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.
Valuation at a Glance
| Symbol | EMR | LUV |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 28.34 | 41.16 |
| Price-to-Sales Ratio (TTM) | 4.23 | 0.59 |
| Price-to-Book Ratio (MRQ) | 3.77 | 2.31 |
| Price-to-Free Cash Flow Ratio (TTM) | 27.42 | 43.02 |