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

Updated on October 2, 2025

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

Company Profile

Symbol	HWM	LUV
Company Name	Howmet Aerospace Inc.	Southwest Airlines Co.
Country	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry	Aerospace & Defense	Passenger Airlines
Market Capitalization	78.55 billion USD	17.08 billion USD
Exchange	NYSE	NYSE
Listing Date	November 1, 2016	January 2, 1980
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of HWM 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.

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

Historical Performance at a Glance

Symbol	HWM	LUV
5-Day Price Return	3.16%	-3.48%
13-Week Price Return	5.43%	-1.63%
26-Week Price Return	46.29%	-7.21%
52-Week Price Return	97.79%	8.06%
Month-to-Date Return	12.71%	-3.01%
Year-to-Date Return	79.42%	-5.09%
10-Day Avg. Volume	2.37M	11.04M
3-Month Avg. Volume	2.87M	10.65M
3-Month Volatility	28.09%	40.41%
Beta	1.49	1.25

Profitability

Return on Equity (TTM)

HWM

29.58%

Aerospace & Defense Industry

Max: 37.11%
Q3: 20.14%
Median: 11.72%
Q1: 6.30%
Min: -6.24%

In the upper quartile for the Aerospace & Defense industry, HWM’s Return on Equity of 29.58% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

LUV

4.11%

Passenger Airlines Industry

Max: 49.96%
Q3: 27.29%
Median: 16.68%
Q1: 8.40%
Min: -15.23%

LUV’s Return on Equity of 4.11% 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.

HWM vs. LUV: A comparison of their Return on Equity (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Net Profit Margin (TTM)

HWM

18.09%

Aerospace & Defense Industry

Max: 13.66%
Q3: 8.61%
Median: 6.59%
Q1: 4.92%
Min: 1.01%

HWM’s Net Profit Margin of 18.09% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

LUV

1.43%

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 1.43% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

HWM vs. LUV: A comparison of their Net Profit Margin (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Operating Profit Margin (TTM)

HWM

24.28%

Aerospace & Defense Industry

Max: 22.35%
Q3: 12.83%
Median: 9.29%
Q1: 6.38%
Min: -2.15%

HWM’s Operating Profit Margin of 24.28% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

LUV

1.15%

Passenger Airlines Industry

Max: 22.47%
Q3: 12.67%
Median: 8.62%
Q1: 4.63%
Min: -2.30%

LUV’s Operating Profit Margin of 1.15% 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.

HWM vs. LUV: A comparison of their Operating Profit Margin (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Profitability at a Glance

Symbol	HWM	LUV
Return on Equity (TTM)	29.58%	4.11%
Return on Assets (TTM)	13.03%	1.20%
Net Profit Margin (TTM)	18.09%	1.43%
Operating Profit Margin (TTM)	24.28%	1.15%
Gross Profit Margin (TTM)	32.69%	73.31%

Financial Strength

Current Ratio (MRQ)

HWM

2.31

Aerospace & Defense Industry

Max: 3.35
Q3: 2.03
Median: 1.24
Q1: 1.04
Min: 0.77

HWM’s Current Ratio of 2.31 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

LUV

0.56

Passenger Airlines Industry

Max: 1.44
Q3: 0.91
Median: 0.73
Q1: 0.54
Min: 0.18

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.

HWM vs. LUV: A comparison of their Current Ratio (MRQ) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Debt-to-Equity Ratio (MRQ)

HWM

0.65

Aerospace & Defense Industry

Max: 1.72
Q3: 0.96
Median: 0.63
Q1: 0.37
Min: 0.03

HWM’s Debt-to-Equity Ratio of 0.65 is typical for the Aerospace & Defense 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: 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 0.51 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

HWM vs. LUV: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Interest Coverage Ratio (TTM)

HWM

7.92

Aerospace & Defense Industry

Max: 36.57
Q3: 19.08
Median: 7.25
Q1: 2.65
Min: -7.63

HWM’s Interest Coverage Ratio of 7.92 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

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.

HWM vs. LUV: A comparison of their Interest Coverage Ratio (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Financial Strength at a Glance

Symbol	HWM	LUV
Current Ratio (MRQ)	2.31	0.56
Quick Ratio (MRQ)	0.91	0.45
Debt-to-Equity Ratio (MRQ)	0.65	0.51
Interest Coverage Ratio (TTM)	7.92	9.27

Growth

Revenue Growth

HWM 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

HWM 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)

HWM

0.19%

Aerospace & Defense Industry

Max: 2.72%
Q3: 1.45%
Median: 0.48%
Q1: 0.08%
Min: 0.00%

HWM’s Dividend Yield of 0.19% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.

LUV

2.51%

Passenger Airlines Industry

Max: 7.04%
Q3: 3.76%
Median: 1.72%
Q1: 0.00%
Min: 0.00%

LUV’s Dividend Yield of 2.51% is consistent with its peers in the Passenger Airlines industry, providing a dividend return that is standard for its sector.

HWM vs. LUV: A comparison of their Dividend Yield (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Dividend Payout Ratio (TTM)

HWM

10.74%

Aerospace & Defense Industry

Max: 110.40%
Q3: 50.43%
Median: 17.11%
Q1: 0.46%
Min: 0.00%

HWM’s Dividend Payout Ratio of 10.74% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

LUV

59.15%

Passenger Airlines Industry

Max: 99.73%
Q3: 50.30%
Median: 23.18%
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.

HWM vs. LUV: A comparison of their Dividend Payout Ratio (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Dividend at a Glance

Symbol	HWM	LUV
Dividend Yield (TTM)	0.19%	2.51%
Dividend Payout Ratio (TTM)	10.74%	59.15%

Valuation

Price-to-Earnings Ratio (TTM)

HWM

56.40

Aerospace & Defense Industry

Max: 67.20
Q3: 55.74
Median: 33.28
Q1: 27.49
Min: 15.02

A P/E Ratio of 56.40 places HWM in the upper quartile for the Aerospace & Defense industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

LUV

43.34

Passenger Airlines Industry

Max: 18.74
Q3: 11.24
Median: 8.33
Q1: 6.11
Min: 2.97

At 43.34, 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.

HWM vs. LUV: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Price-to-Sales Ratio (TTM)

HWM

10.20

Aerospace & Defense Industry

Max: 9.06
Q3: 4.87
Median: 2.47
Q1: 1.61
Min: 0.33

With a P/S Ratio of 10.20, HWM trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

LUV

0.62

Passenger Airlines Industry

Max: 1.07
Q3: 0.73
Median: 0.62
Q1: 0.40
Min: 0.09

LUV’s P/S Ratio of 0.62 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.

HWM vs. LUV: A comparison of their Price-to-Sales Ratio (TTM) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Price-to-Book Ratio (MRQ)

HWM

14.90

Aerospace & Defense Industry

Max: 14.90
Q3: 8.93
Median: 4.70
Q1: 3.03
Min: 0.83

HWM’s P/B Ratio of 14.90 is in the upper tier for the Aerospace & Defense 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

2.31

Passenger Airlines Industry

Max: 3.47
Q3: 3.19
Median: 1.94
Q1: 1.28
Min: 0.50

LUV’s P/B Ratio of 2.31 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.

HWM vs. LUV: A comparison of their Price-to-Book Ratio (MRQ) against their respective Aerospace & Defense and Passenger Airlines industry benchmarks.

Valuation at a Glance

Symbol	HWM	LUV
Price-to-Earnings Ratio (TTM)	56.40	43.34
Price-to-Sales Ratio (TTM)	10.20	0.62
Price-to-Book Ratio (MRQ)	14.90	2.31
Price-to-Free Cash Flow Ratio (TTM)	77.40	45.31