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

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

Company Profile

SymbolGELUV
Company NameGE AerospaceSouthwest Airlines Co.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryIndustrial ConglomeratesPassenger Airlines
Market Capitalization285.11 billion USD16.27 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962January 2, 1980
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of GE 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.

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

Historical Performance at a Glance

SymbolGELUV
5-Day Price Return-1.16%4.77%
13-Week Price Return22.80%-0.96%
26-Week Price Return30.48%-0.39%
52-Week Price Return61.12%22.03%
Month-to-Date Return-0.82%0.13%
Year-to-Date Return61.20%-7.88%
10-Day Avg. Volume4.24M9.27M
3-Month Avg. Volume6.65M12.50M
3-Month Volatility24.29%40.35%
Beta1.531.23

Profitability

Return on Equity (TTM)

GE

40.51%

Industrial Conglomerates Industry

Max
21.93%
Q3
14.23%
Median
7.81%
Q1
5.91%
Min
-3.58%

GE’s Return on Equity of 40.51% is exceptionally high, placing it well beyond the typical range for the Industrial Conglomerates industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

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.

GE vs. LUV: A comparison of their Return on Equity (TTM) against their respective Industrial Conglomerates and Passenger Airlines industry benchmarks.

Net Profit Margin (TTM)

GE

18.64%

Industrial Conglomerates Industry

Max
18.70%
Q3
12.58%
Median
9.26%
Q1
3.87%
Min
-2.26%

A Net Profit Margin of 18.64% places GE in the upper quartile for the Industrial Conglomerates 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.

GE vs. LUV: A comparison of their Net Profit Margin (TTM) against their respective Industrial Conglomerates and Passenger Airlines industry benchmarks.

Operating Profit Margin (TTM)

GE

15.53%

Industrial Conglomerates Industry

Max
25.69%
Q3
17.03%
Median
12.85%
Q1
8.81%
Min
-0.73%

GE’s Operating Profit Margin of 15.53% is around the midpoint for the Industrial Conglomerates industry, indicating that its efficiency in managing core business operations is typical for the sector.

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.

GE vs. LUV: A comparison of their Operating Profit Margin (TTM) against their respective Industrial Conglomerates and Passenger Airlines industry benchmarks.

Profitability at a Glance

SymbolGELUV
Return on Equity (TTM)40.51%4.11%
Return on Assets (TTM)6.22%1.20%
Net Profit Margin (TTM)18.64%1.43%
Operating Profit Margin (TTM)15.53%1.15%
Gross Profit Margin (TTM)35.97%73.31%

Financial Strength

Current Ratio (MRQ)

GE

1.04

Industrial Conglomerates Industry

Max
2.19
Q3
1.64
Median
1.38
Q1
1.13
Min
0.61

GE’s Current Ratio of 1.04 falls into the lower quartile for the Industrial Conglomerates 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.

GE vs. LUV: A comparison of their Current Ratio (MRQ) against their respective Industrial Conglomerates and Passenger Airlines industry benchmarks.

Debt-to-Equity Ratio (MRQ)

GE

0.99

Industrial Conglomerates Industry

Max
2.27
Q3
1.47
Median
0.99
Q1
0.66
Min
0.21

GE’s Debt-to-Equity Ratio of 0.99 is typical for the Industrial Conglomerates 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.

GE vs. LUV: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Industrial Conglomerates and Passenger Airlines industry benchmarks.

Interest Coverage Ratio (TTM)

GE

5.01

Industrial Conglomerates Industry

Max
11.17
Q3
8.02
Median
5.88
Q1
2.73
Min
-2.15

GE’s Interest Coverage Ratio of 5.01 is positioned comfortably within the norm for the Industrial Conglomerates 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.

GE vs. LUV: A comparison of their Interest Coverage Ratio (TTM) against their respective Industrial Conglomerates and Passenger Airlines industry benchmarks.

Financial Strength at a Glance

SymbolGELUV
Current Ratio (MRQ)1.040.56
Quick Ratio (MRQ)0.730.45
Debt-to-Equity Ratio (MRQ)0.990.51
Interest Coverage Ratio (TTM)5.019.27

Growth

Revenue Growth

GE 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

GE 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)

GE

0.44%

Industrial Conglomerates Industry

Max
10.17%
Q3
5.53%
Median
3.14%
Q1
1.88%
Min
0.00%

GE’s Dividend Yield of 0.44% is in the lower quartile for the Industrial Conglomerates industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

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.

GE vs. LUV: A comparison of their Dividend Yield (TTM) against their respective Industrial Conglomerates and Passenger Airlines industry benchmarks.

Dividend Payout Ratio (TTM)

GE

16.78%

Industrial Conglomerates Industry

Max
181.91%
Q3
95.57%
Median
50.60%
Q1
35.01%
Min
1.76%

GE’s Dividend Payout Ratio of 16.78% is in the lower quartile for the Industrial Conglomerates industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

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.

GE vs. LUV: A comparison of their Dividend Payout Ratio (TTM) against their respective Industrial Conglomerates and Passenger Airlines industry benchmarks.

Dividend at a Glance

SymbolGELUV
Dividend Yield (TTM)0.44%2.65%
Dividend Payout Ratio (TTM)16.78%59.15%

Valuation

Price-to-Earnings Ratio (TTM)

GE

38.26

Industrial Conglomerates Industry

Max
36.98
Q3
22.09
Median
12.18
Q1
8.93
Min
5.63

At 38.26, GE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Industrial Conglomerates industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

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.

GE vs. LUV: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Industrial Conglomerates and Passenger Airlines industry benchmarks.

Price-to-Sales Ratio (TTM)

GE

7.13

Industrial Conglomerates Industry

Max
3.60
Q3
2.10
Median
0.68
Q1
0.42
Min
0.11

With a P/S Ratio of 7.13, GE trades at a valuation that eclipses even the highest in the Industrial Conglomerates industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

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.

GE vs. LUV: A comparison of their Price-to-Sales Ratio (TTM) against their respective Industrial Conglomerates and Passenger Airlines industry benchmarks.

Price-to-Book Ratio (MRQ)

GE

14.26

Industrial Conglomerates Industry

Max
4.89
Q3
2.51
Median
1.06
Q1
0.60
Min
0.27

At 14.26, GE’s P/B Ratio is at an extreme premium to the Industrial Conglomerates industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

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.

GE vs. LUV: A comparison of their Price-to-Book Ratio (MRQ) against their respective Industrial Conglomerates and Passenger Airlines industry benchmarks.

Valuation at a Glance

SymbolGELUV
Price-to-Earnings Ratio (TTM)38.2641.16
Price-to-Sales Ratio (TTM)7.130.59
Price-to-Book Ratio (MRQ)14.262.31
Price-to-Free Cash Flow Ratio (TTM)54.0443.02