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

Updated

Here’s a clear look at IR and LUV, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

IR dominates in value with a market cap of 33.14 billion USD, eclipsing LUV’s 19.13 billion USD by roughly 1.73×.

With betas of 1.42 for IR and 1.18 for LUV, both show similar volatility profiles relative to the overall market.

SymbolIRLUV
Company NameIngersoll Rand Inc.Southwest Airlines Co.
CountryUSUS
SectorIndustrialsIndustrials
IndustryIndustrial - MachineryAirlines, Airports & Air Services
CEOMr. Vicente ReynalMr. Robert E. Jordan
Price82.135 USD33.575 USD
Market Cap33.14 billion USD19.13 billion USD
Beta1.421.18
ExchangeNYSENYSE
IPO DateMay 12, 2017January 2, 1980
ADRNoNo

Performance Comparison

This chart compares the performance of IR and LUV over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of IR and LUV based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • LUV reports a negative Price-to-Free Cash Flow ratio of -33.98, showing a cash flow shortfall that could threaten its operational sustainability, while IR at 23.17 maintains positive cash flow.
SymbolIRLUV
Price-to-Earnings Ratio (P/E, TTM)40.2635.91
Forward PEG Ratio (TTM)5.980.98
Price-to-Sales Ratio (P/S, TTM)4.550.69
Price-to-Book Ratio (P/B, TTM)3.162.09
Price-to-Free Cash Flow Ratio (P/FCF, TTM)23.17-33.98
EV-to-EBITDA (TTM)17.637.38
EV-to-Sales (TTM)4.330.69
EV-to-Free Cash Flow (TTM)22.04-33.74

Dividend Comparison

LUV stands out with a 2.14% dividend yield—around 2102% above IR’s 0.10%—highlighting its emphasis on generous payouts.

SymbolIRLUV
Dividend Yield (TTM)0.10%2.14%

Financial Strength Metrics Comparison

This section dives into the financial resilience of IR and LUV, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • LUV’s current ratio of 0.77 indicates its assets may not cover near-term debts, whereas IR at 2.38 maintains healthy liquidity.
  • LUV posts a quick ratio of 0.72, indicating limited coverage of short-term debts from its most liquid assets—while IR at 1.76 enjoys stronger liquidity resilience.
SymbolIRLUV
Current Ratio (TTM)2.380.77
Quick Ratio (TTM)1.760.72
Debt-to-Equity Ratio (TTM)0.000.85
Interest Coverage Ratio (TTM)5.882.88