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FDX vs. LUV: FedEx vs. Southwest Airlines Stock Comparison

How do FedEx (FDX) 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

FedEx (FDX) and Southwest Airlines (LUV) both fall under the Transportation industry group, but FDX is classified in Air Freight & Logistics while LUV is classified in Passenger Airlines.

Company profile comparison for FedEx (FDX) and Southwest Airlines (LUV)
Profile ItemFDXLUV
NameFedEx Corp.Southwest Airlines Co.
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupTransportationTransportation
GICS IndustryAir Freight & LogisticsPassenger Airlines
GICS Sub-IndustryAir Freight & LogisticsPassenger Airlines
Market Capitalization72.17 billion USD21.76 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateApril 12, 1978January 2, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

FDX
LUV
GSPC
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FedEx (FDX) 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 FedEx (FDX) and Southwest Airlines (LUV). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for FedEx (FDX) and Southwest Airlines (LUV)
MetricFDXLUV
Total Return (1Y)53.06%44.35%
Total Return (3Y, Annualized)20.20%28.08%
Total Return (5Y, Annualized)11.81%-0.31%

Risk Profile

Drawdown History

FDX
LUV
GSPC
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FedEx (FDX) 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 FedEx (FDX) and Southwest Airlines (LUV). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for FedEx (FDX) and Southwest Airlines (LUV)
MetricFDXLUV
Volatility (1Y, Annualized)28.80%44.46%
Beta (5Y)1.261.19
Max Drawdown (5Y)-45.30%-55.39%
Avg. Volume (3M)1.52M5.76M

Risk-Adjusted Performance

Risk-Return Positioning

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FDX 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 FedEx (FDX) and Southwest Airlines (LUV)
MetricFDXLUV
Sharpe Ratio (1Y)1.690.90
Sortino Ratio (1Y)2.621.51

Profitability

ROE (TTM)

Both FedEx (FDX) at 14.85% 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.

FDX

Transportation industry group

14.85%

Max
45.08%
Q3
22.02%
FDX
14.85%
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%
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FedEx (FDX) vs. Southwest Airlines (LUV): A comparison of their ROE against the Transportation industry group benchmark.

Net Margin (TTM)

Both FedEx (FDX) at 4.68% and Southwest Airlines (LUV) at 3.34% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

FDX

Transportation industry group

4.68%

Max
50.36%
Q3
21.18%
Median
5.58%
FDX
4.68%
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%
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FedEx (FDX) vs. Southwest Airlines (LUV): A comparison of their net margin against the Transportation industry group benchmark.

Operating Margin (TTM)

FedEx (FDX) at 5.00% runs core operations around its industry’s norm, while Southwest Airlines (LUV) at 4.49% operates in the bottom quartile.

FDX

Transportation industry group

5.00%

Max
59.18%
Q3
29.30%
Median
11.50%
FDX
5.00%
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%
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FedEx (FDX) vs. Southwest Airlines (LUV): A comparison of their operating margin against the Transportation industry group benchmark.

Profitability Metrics

Profitability metrics for FedEx (FDX) and Southwest Airlines (LUV)
MetricFDXLUV
ROE (TTM)14.85%13.94%
ROA (TTM)5.01%3.05%
Net Margin (TTM)4.68%3.34%
Operating Margin (TTM)5.00%4.49%
Gross Margin (TTM)27.32%22.14%

Growth

Revenue Growth

Both FedEx (FDX) at 7.73% 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.

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FedEx (FDX) vs. Southwest Airlines (LUV): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both FedEx (FDX) at 10.35% 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.

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FedEx (FDX) vs. Southwest Airlines (LUV): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for FedEx (FDX) and Southwest Airlines (LUV)
MetricFDXLUV
Revenue Growth (YoY)7.73%2.11%
Revenue Growth (3Y CAGR)1.66%5.63%
EPS Growth (YoY)10.35%3.95%
EPS Growth (3Y CAGR)6.22%-3.16%

Financial Strength

Current Ratio (MRQ)

FedEx (FDX) at 1.48 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.

FDX

Transportation industry group

1.48

Max
2.58
Q3
1.62
FDX
1.48
Median
1.16
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
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FedEx (FDX) vs. Southwest Airlines (LUV): A comparison of their current ratio against the Transportation industry group benchmark.

Debt / Equity (MRQ)

Both FedEx (FDX) at 0.99 and Southwest Airlines (LUV) at 0.94 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

FDX

Transportation industry group

0.99

Max
2.75
Q3
1.37
FDX
0.99
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
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FedEx (FDX) 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 FedEx (FDX) and Southwest Airlines (LUV)
MetricFDXLUV
Current Ratio (MRQ)1.480.47
Debt / Equity (MRQ)0.990.94
Net Debt / EBITDA1.911.21

Dividends

Dividend Yield (TTM)

Both FedEx (FDX) at 1.76% and Southwest Airlines (LUV) at 1.62% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

FDX

Transportation industry group

1.76%

Max
4.68%
Q3
1.99%
FDX
1.76%
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%
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FedEx (FDX) vs. Southwest Airlines (LUV): A comparison of their dividend yield against the Transportation industry group benchmark.

Dividend Payout Ratio (TTM)

Both FedEx (FDX) at 31.27% 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.

FDX

Transportation industry group

31.27%

Max
100.89%
Q3
41.68%
FDX
31.27%
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%
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FedEx (FDX) vs. Southwest Airlines (LUV): A comparison of their payout ratio against the Transportation industry group benchmark.

Dividend Metrics

Dividend metrics for FedEx (FDX) and Southwest Airlines (LUV)
MetricFDXLUV
Dividend Yield (TTM)1.76%1.62%
Dividend Payout Ratio (TTM)31.27%35.12%

Valuation

P/E Ratio (TTM)

Both FedEx (FDX) at 16.61 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.

FDX

Transportation industry group

16.61

Max
46.76
Q3
30.87
Median
20.58
FDX
16.61
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
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FedEx (FDX) vs. Southwest Airlines (LUV): A comparison of their P/E ratio against the Transportation industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both FedEx (FDX) at 0.76 and Southwest Airlines (LUV) at 0.69 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

FDX

Transportation industry group

0.76

Max
4.35
Q3
2.07
Median
0.93
FDX
0.76
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
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FedEx (FDX) 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 FedEx (FDX) at 2.09 and Southwest Airlines (LUV) at 2.97 are valued close to their industries’ norm against book — neither stands out from peers.

FDX

Transportation industry group

2.09

Max
6.29
Q3
3.39
FDX
2.09
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
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FedEx (FDX) vs. Southwest Airlines (LUV): A comparison of their P/B ratio against the Transportation industry group benchmark.

Valuation Metrics

Valuation metrics for FedEx (FDX) and Southwest Airlines (LUV)
MetricFDXLUV
P/E Ratio (TTM)16.6121.68
P/S Ratio (TTM)0.760.69
P/B Ratio (MRQ)2.092.97
Free Cash Flow Yield (TTM)7.84%-2.82%