ITW vs. LUV: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ITW and LUV, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ITW | LUV |
|---|---|---|
| Company Name | Illinois Tool Works Inc. | Southwest Airlines Co. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Machinery | Passenger Airlines |
| Market Capitalization | 75.79 billion USD | 17.08 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | March 13, 1973 | January 2, 1980 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ITW 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 | ITW | LUV |
|---|---|---|
| 5-Day Price Return | -0.53% | -0.73% |
| 13-Week Price Return | 0.58% | -4.58% |
| 26-Week Price Return | 4.83% | -3.16% |
| 52-Week Price Return | -0.72% | 9.98% |
| Month-to-Date Return | -0.29% | 1.91% |
| Year-to-Date Return | 2.54% | -3.27% |
| 10-Day Avg. Volume | 0.77M | 9.33M |
| 3-Month Avg. Volume | 0.92M | 10.47M |
| 3-Month Volatility | 16.53% | 39.87% |
| Beta | 1.17 | 1.20 |
Profitability
Return on Equity (TTM)
ITW
102.30%
Machinery Industry
- Max
- 33.68%
- Q3
- 20.05%
- Median
- 12.37%
- Q1
- 8.67%
- Min
- -7.69%
ITW’s Return on Equity of 102.30% is exceptionally high, placing it well beyond the typical range for the Machinery 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
- 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.
Net Profit Margin (TTM)
ITW
21.31%
Machinery Industry
- Max
- 19.72%
- Q3
- 11.07%
- Median
- 7.62%
- Q1
- 5.05%
- Min
- -1.52%
ITW’s Net Profit Margin of 21.31% 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
1.43%
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.
Operating Profit Margin (TTM)
ITW
25.98%
Machinery Industry
- Max
- 26.63%
- Q3
- 15.99%
- Median
- 11.27%
- Q1
- 7.72%
- Min
- -0.51%
An Operating Profit Margin of 25.98% places ITW in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
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.
Profitability at a Glance
| Symbol | ITW | LUV |
|---|---|---|
| Return on Equity (TTM) | 102.30% | 4.11% |
| Return on Assets (TTM) | 21.57% | 1.20% |
| Net Profit Margin (TTM) | 21.31% | 1.43% |
| Operating Profit Margin (TTM) | 25.98% | 1.15% |
| Gross Profit Margin (TTM) | 43.74% | 73.31% |
Financial Strength
Current Ratio (MRQ)
ITW
1.59
Machinery Industry
- Max
- 3.13
- Q3
- 2.12
- Median
- 1.72
- Q1
- 1.34
- Min
- 0.77
ITW’s Current Ratio of 1.59 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector 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.
Debt-to-Equity Ratio (MRQ)
ITW
2.78
Machinery Industry
- Max
- 1.56
- Q3
- 0.79
- Median
- 0.44
- Q1
- 0.27
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.78, ITW operates with exceptionally high leverage compared to the Machinery industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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.
Interest Coverage Ratio (TTM)
ITW
20.06
Machinery Industry
- Max
- 81.58
- Q3
- 37.68
- Median
- 13.76
- Q1
- 7.97
- Min
- -1.43
ITW’s Interest Coverage Ratio of 20.06 is positioned comfortably within the norm for the Machinery 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.
Financial Strength at a Glance
| Symbol | ITW | LUV |
|---|---|---|
| Current Ratio (MRQ) | 1.59 | 0.56 |
| Quick Ratio (MRQ) | 1.04 | 0.45 |
| Debt-to-Equity Ratio (MRQ) | 2.78 | 0.51 |
| Interest Coverage Ratio (TTM) | 20.06 | 9.27 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ITW
2.28%
Machinery Industry
- Max
- 4.55%
- Q3
- 2.66%
- Median
- 1.90%
- Q1
- 1.23%
- Min
- 0.00%
ITW’s Dividend Yield of 2.28% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.
LUV
2.45%
Passenger Airlines Industry
- Max
- 7.04%
- Q3
- 3.76%
- Median
- 1.72%
- Q1
- 0.00%
- Min
- 0.00%
LUV’s Dividend Yield of 2.45% is consistent with its peers in the Passenger Airlines industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
ITW
51.65%
Machinery Industry
- Max
- 198.34%
- Q3
- 101.42%
- Median
- 62.79%
- Q1
- 29.85%
- Min
- 0.00%
ITW’s Dividend Payout Ratio of 51.65% is within the typical range for the Machinery 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.
Dividend at a Glance
| Symbol | ITW | LUV |
|---|---|---|
| Dividend Yield (TTM) | 2.28% | 2.45% |
| Dividend Payout Ratio (TTM) | 51.65% | 59.15% |
Valuation
Price-to-Earnings Ratio (TTM)
ITW
22.62
Machinery Industry
- Max
- 47.95
- Q3
- 30.11
- Median
- 22.35
- Q1
- 16.56
- Min
- 6.48
ITW’s P/E Ratio of 22.62 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
44.50
Passenger Airlines Industry
- Max
- 18.74
- Q3
- 11.24
- Median
- 8.33
- Q1
- 6.11
- Min
- 2.97
At 44.50, 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)
ITW
4.82
Machinery Industry
- Max
- 4.97
- Q3
- 2.76
- Median
- 1.65
- Q1
- 1.04
- Min
- 0.04
ITW’s P/S Ratio of 4.82 is in the upper echelon for the Machinery industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
LUV
0.64
Passenger Airlines Industry
- Max
- 1.07
- Q3
- 0.73
- Median
- 0.62
- Q1
- 0.40
- Min
- 0.09
LUV’s P/S Ratio of 0.64 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)
ITW
22.57
Machinery Industry
- Max
- 7.29
- Q3
- 4.06
- Median
- 2.67
- Q1
- 1.54
- Min
- 0.52
At 22.57, ITW’s P/B Ratio is at an extreme premium to the Machinery 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
- 3.47
- 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.
Valuation at a Glance
| Symbol | ITW | LUV |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 22.62 | 44.50 |
| Price-to-Sales Ratio (TTM) | 4.82 | 0.64 |
| Price-to-Book Ratio (MRQ) | 22.57 | 2.31 |
| Price-to-Free Cash Flow Ratio (TTM) | 27.94 | 46.52 |