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

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

Company Profile

SymbolGWWLUV
Company NameW.W. Grainger, Inc.Southwest Airlines Co.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryTrading Companies & DistributorsPassenger Airlines
Market Capitalization44.26 billion USD17.00 billion USD
ExchangeNYSENYSE
Listing DateFebruary 21, 1973January 2, 1980
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of GWW 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.

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

Historical Performance at a Glance

SymbolGWWLUV
5-Day Price Return-2.50%0.49%
13-Week Price Return-4.51%4.19%
26-Week Price Return-13.14%4.89%
52-Week Price Return-22.94%1.36%
Month-to-Date Return-5.39%8.32%
Year-to-Date Return-12.13%-2.38%
10-Day Avg. Volume0.26M8.72M
3-Month Avg. Volume0.32M9.81M
3-Month Volatility18.13%34.95%
Beta1.151.18

Profitability

Return on Equity (TTM)

GWW

49.17%

Trading Companies & Distributors Industry

Max
32.99%
Q3
19.30%
Median
12.90%
Q1
9.19%
Min
-4.19%

GWW’s Return on Equity of 49.17% is exceptionally high, placing it well beyond the typical range for the Trading Companies & Distributors industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

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.

GWW vs. LUV: A comparison of their Return on Equity (TTM) against their respective Trading Companies & Distributors and Passenger Airlines industry benchmarks.

Net Profit Margin (TTM)

GWW

9.75%

Trading Companies & Distributors Industry

Max
18.35%
Q3
9.73%
Median
6.00%
Q1
3.53%
Min
-3.81%

A Net Profit Margin of 9.75% places GWW in the upper quartile for the Trading Companies & Distributors industry, signifying strong profitability and more effective cost management than most of its peers.

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.

GWW vs. LUV: A comparison of their Net Profit Margin (TTM) against their respective Trading Companies & Distributors and Passenger Airlines industry benchmarks.

Operating Profit Margin (TTM)

GWW

14.05%

Trading Companies & Distributors Industry

Max
25.07%
Q3
13.61%
Median
7.26%
Q1
4.79%
Min
-7.51%

An Operating Profit Margin of 14.05% places GWW in the upper quartile for the Trading Companies & Distributors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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.

GWW vs. LUV: A comparison of their Operating Profit Margin (TTM) against their respective Trading Companies & Distributors and Passenger Airlines industry benchmarks.

Profitability at a Glance

SymbolGWWLUV
Return on Equity (TTM)49.17%4.27%
Return on Assets (TTM)19.62%1.22%
Net Profit Margin (TTM)9.75%1.38%
Operating Profit Margin (TTM)14.05%1.14%
Gross Profit Margin (TTM)39.09%73.50%

Financial Strength

Current Ratio (MRQ)

GWW

2.72

Trading Companies & Distributors Industry

Max
3.62
Q3
2.33
Median
1.57
Q1
1.39
Min
0.27

GWW’s Current Ratio of 2.72 is in the upper quartile for the Trading Companies & Distributors industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its 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.

GWW vs. LUV: A comparison of their Current Ratio (MRQ) against their respective Trading Companies & Distributors and Passenger Airlines industry benchmarks.

Debt-to-Equity Ratio (MRQ)

GWW

0.67

Trading Companies & Distributors Industry

Max
1.93
Q3
1.19
Median
0.78
Q1
0.54
Min
0.00

GWW’s Debt-to-Equity Ratio of 0.67 is typical for the Trading Companies & Distributors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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.

GWW vs. LUV: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Trading Companies & Distributors and Passenger Airlines industry benchmarks.

Interest Coverage Ratio (TTM)

GWW

34.56

Trading Companies & Distributors Industry

Max
15.13
Q3
7.93
Median
5.62
Q1
1.79
Min
-1.67

With an Interest Coverage Ratio of 34.56, GWW demonstrates a superior capacity to service its debt, placing it well above the typical range for the Trading Companies & Distributors 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.

GWW vs. LUV: A comparison of their Interest Coverage Ratio (TTM) against their respective Trading Companies & Distributors and Passenger Airlines industry benchmarks.

Financial Strength at a Glance

SymbolGWWLUV
Current Ratio (MRQ)2.720.49
Quick Ratio (MRQ)1.490.38
Debt-to-Equity Ratio (MRQ)0.670.53
Interest Coverage Ratio (TTM)34.569.27

Growth

Revenue Growth

GWW 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

GWW 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)

GWW

1.04%

Trading Companies & Distributors Industry

Max
5.11%
Q3
2.73%
Median
2.07%
Q1
1.04%
Min
0.00%

GWW’s Dividend Yield of 1.04% is consistent with its peers in the Trading Companies & Distributors 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.

GWW vs. LUV: A comparison of their Dividend Yield (TTM) against their respective Trading Companies & Distributors and Passenger Airlines industry benchmarks.

Dividend Payout Ratio (TTM)

GWW

26.47%

Trading Companies & Distributors Industry

Max
136.12%
Q3
68.26%
Median
48.45%
Q1
22.66%
Min
0.00%

GWW’s Dividend Payout Ratio of 26.47% is within the typical range for the Trading Companies & Distributors 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.

GWW vs. LUV: A comparison of their Dividend Payout Ratio (TTM) against their respective Trading Companies & Distributors and Passenger Airlines industry benchmarks.

Dividend at a Glance

SymbolGWWLUV
Dividend Yield (TTM)1.04%2.36%
Dividend Payout Ratio (TTM)26.47%55.49%

Valuation

Price-to-Earnings Ratio (TTM)

GWW

25.46

Trading Companies & Distributors Industry

Max
37.92
Q3
24.64
Median
17.42
Q1
14.27
Min
5.07

A P/E Ratio of 25.46 places GWW in the upper quartile for the Trading Companies & Distributors industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

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.

GWW vs. LUV: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Trading Companies & Distributors and Passenger Airlines industry benchmarks.

Price-to-Sales Ratio (TTM)

GWW

2.48

Trading Companies & Distributors Industry

Max
4.94
Q3
2.49
Median
1.08
Q1
0.75
Min
0.30

GWW’s P/S Ratio of 2.48 aligns with the market consensus for the Trading Companies & Distributors 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.

GWW vs. LUV: A comparison of their Price-to-Sales Ratio (TTM) against their respective Trading Companies & Distributors and Passenger Airlines industry benchmarks.

Price-to-Book Ratio (MRQ)

GWW

12.80

Trading Companies & Distributors Industry

Max
9.42
Q3
4.66
Median
2.10
Q1
1.34
Min
0.31

At 12.80, GWW’s P/B Ratio is at an extreme premium to the Trading Companies & Distributors 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

2.16

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.

GWW vs. LUV: A comparison of their Price-to-Book Ratio (MRQ) against their respective Trading Companies & Distributors and Passenger Airlines industry benchmarks.

Valuation at a Glance

SymbolGWWLUV
Price-to-Earnings Ratio (TTM)25.4644.78
Price-to-Sales Ratio (TTM)2.480.62
Price-to-Book Ratio (MRQ)12.802.16
Price-to-Free Cash Flow Ratio (TTM)35.7545.26