GGG vs. LUV: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at GGG and LUV, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | GGG | LUV |
|---|---|---|
| Company Name | Graco Inc. | Southwest Airlines Co. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Machinery | Passenger Airlines |
| Market Capitalization | 13.56 billion USD | 16.89 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | March 17, 1980 | January 2, 1980 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of GGG 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 | GGG | LUV |
|---|---|---|
| 5-Day Price Return | 0.12% | 10.08% |
| 13-Week Price Return | -1.66% | 12.39% |
| 26-Week Price Return | -0.24% | 7.86% |
| 52-Week Price Return | -6.60% | 4.48% |
| Month-to-Date Return | 0.01% | 7.79% |
| Year-to-Date Return | -2.98% | -2.86% |
| 10-Day Avg. Volume | 0.93M | 9.21M |
| 3-Month Avg. Volume | 0.74M | 10.01M |
| 3-Month Volatility | 18.28% | 35.70% |
| Beta | 1.09 | 1.19 |
Profitability
Return on Equity (TTM)
GGG
19.59%
Machinery Industry
- Max
- 33.68%
- Q3
- 20.05%
- Median
- 12.37%
- Q1
- 8.67%
- Min
- -7.69%
GGG’s Return on Equity of 19.59% is on par with the norm for the Machinery industry, indicating its profitability relative to shareholder equity is typical for the sector.
LUV
4.27%
Passenger Airlines Industry
- Max
- 49.96%
- Q3
- 27.29%
- Median
- 16.68%
- Q1
- 8.40%
- Min
- -15.23%
LUV’s Return on Equity of 4.27% 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)
GGG
22.72%
Machinery Industry
- Max
- 19.72%
- Q3
- 11.07%
- Median
- 7.62%
- Q1
- 5.05%
- Min
- -1.52%
GGG’s Net Profit Margin of 22.72% is exceptionally high, placing it well beyond the typical range for the Machinery industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
LUV
1.38%
Passenger Airlines Industry
- Max
- 16.00%
- Q3
- 8.99%
- Median
- 6.35%
- Q1
- 3.18%
- Min
- -4.22%
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.
Operating Profit Margin (TTM)
GGG
27.20%
Machinery Industry
- Max
- 26.63%
- Q3
- 15.99%
- Median
- 11.27%
- Q1
- 7.72%
- Min
- -0.51%
GGG’s Operating Profit Margin of 27.20% is exceptionally high, placing it well above the typical range for the Machinery industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
LUV
1.14%
Passenger Airlines Industry
- Max
- 22.47%
- Q3
- 12.67%
- Median
- 8.62%
- Q1
- 4.63%
- Min
- -2.30%
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.
Profitability at a Glance
| Symbol | GGG | LUV |
|---|---|---|
| Return on Equity (TTM) | 19.59% | 4.27% |
| Return on Assets (TTM) | 16.03% | 1.22% |
| Net Profit Margin (TTM) | 22.72% | 1.38% |
| Operating Profit Margin (TTM) | 27.20% | 1.14% |
| Gross Profit Margin (TTM) | 52.68% | 73.50% |
Financial Strength
Current Ratio (MRQ)
GGG
3.18
Machinery Industry
- Max
- 3.13
- Q3
- 2.12
- Median
- 1.72
- Q1
- 1.34
- Min
- 0.77
GGG’s Current Ratio of 3.18 is exceptionally high, placing it well outside the typical range for the Machinery industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
LUV
0.49
Passenger Airlines Industry
- Max
- 1.44
- Q3
- 0.91
- Median
- 0.73
- Q1
- 0.54
- Min
- 0.18
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.
Debt-to-Equity Ratio (MRQ)
GGG
0.01
Machinery Industry
- Max
- 1.56
- Q3
- 0.79
- Median
- 0.44
- Q1
- 0.27
- Min
- 0.00
Falling into the lower quartile for the Machinery industry, GGG’s Debt-to-Equity Ratio of 0.01 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
- 5.04
- Median
- 1.27
- Q1
- 0.82
- 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.
Interest Coverage Ratio (TTM)
GGG
209.37
Machinery Industry
- Max
- 81.58
- Q3
- 37.68
- Median
- 13.76
- Q1
- 7.97
- Min
- -1.43
With an Interest Coverage Ratio of 209.37, GGG demonstrates a superior capacity to service its debt, placing it well above the typical range for the Machinery industry. This stems from either robust earnings or a conservative debt load.
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.
Financial Strength at a Glance
| Symbol | GGG | LUV |
|---|---|---|
| Current Ratio (MRQ) | 3.18 | 0.49 |
| Quick Ratio (MRQ) | 2.27 | 0.38 |
| Debt-to-Equity Ratio (MRQ) | 0.01 | 0.53 |
| Interest Coverage Ratio (TTM) | 209.37 | 9.27 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
GGG
1.33%
Machinery Industry
- Max
- 4.55%
- Q3
- 2.66%
- Median
- 1.90%
- Q1
- 1.23%
- Min
- 0.00%
GGG’s Dividend Yield of 1.33% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.
LUV
2.38%
Passenger Airlines Industry
- Max
- 7.04%
- Q3
- 3.76%
- Median
- 1.72%
- Q1
- 0.00%
- Min
- 0.00%
LUV’s Dividend Yield of 2.38% is consistent with its peers in the Passenger Airlines industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
GGG
36.31%
Machinery Industry
- Max
- 198.34%
- Q3
- 101.42%
- Median
- 62.79%
- Q1
- 29.85%
- Min
- 0.00%
GGG’s Dividend Payout Ratio of 36.31% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
LUV
55.49%
Passenger Airlines Industry
- Max
- 99.73%
- Q3
- 50.30%
- Median
- 23.18%
- 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.
Dividend at a Glance
| Symbol | GGG | LUV |
|---|---|---|
| Dividend Yield (TTM) | 1.33% | 2.38% |
| Dividend Payout Ratio (TTM) | 36.31% | 55.49% |
Valuation
Price-to-Earnings Ratio (TTM)
GGG
27.35
Machinery Industry
- Max
- 47.95
- Q3
- 30.11
- Median
- 22.35
- Q1
- 16.56
- Min
- 6.48
GGG’s P/E Ratio of 27.35 is within the middle range for the Machinery 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
44.28
Passenger Airlines Industry
- Max
- 18.74
- Q3
- 11.24
- Median
- 8.33
- Q1
- 6.11
- Min
- 2.97
At 44.28, 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)
GGG
6.21
Machinery Industry
- Max
- 4.97
- Q3
- 2.76
- Median
- 1.65
- Q1
- 1.04
- Min
- 0.04
With a P/S Ratio of 6.21, GGG trades at a valuation that eclipses even the highest in the Machinery industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
LUV
0.61
Passenger Airlines Industry
- Max
- 1.07
- Q3
- 0.73
- Median
- 0.62
- Q1
- 0.40
- Min
- 0.09
LUV’s P/S Ratio of 0.61 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)
GGG
5.38
Machinery Industry
- Max
- 7.29
- Q3
- 4.06
- Median
- 2.67
- Q1
- 1.54
- Min
- 0.52
GGG’s P/B Ratio of 5.38 is in the upper tier for the Machinery industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
LUV
2.16
Passenger Airlines Industry
- Max
- 3.47
- Q3
- 3.19
- Median
- 1.94
- Q1
- 1.28
- Min
- 0.50
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.
Valuation at a Glance
| Symbol | GGG | LUV |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 27.35 | 44.28 |
| Price-to-Sales Ratio (TTM) | 6.21 | 0.61 |
| Price-to-Book Ratio (MRQ) | 5.38 | 2.16 |
| Price-to-Free Cash Flow Ratio (TTM) | 21.80 | 44.75 |