Seek Returns logo

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

Updated on

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

Company Profile

LTM trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, LUV is a standard domestic listing.

SymbolLTMLUV
Company Name--Southwest Airlines Co.
CountryChileUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryPassenger AirlinesPassenger Airlines
Market Capitalization13.30 billion USD17.08 billion USD
ExchangeNYSENYSE
Listing DateJuly 25, 2024January 2, 1980
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of LTM 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.

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

Historical Performance at a Glance

SymbolLTMLUV
5-Day Price Return-0.55%-3.48%
13-Week Price Return17.60%-1.63%
26-Week Price Return46.64%-7.21%
52-Week Price Return64.89%8.06%
Month-to-Date Return-10.23%-3.01%
Year-to-Date Return59.14%-5.09%
10-Day Avg. Volume4,568.23M11.04M
3-Month Avg. Volume2,423.08M10.65M
3-Month Volatility31.50%40.41%
Beta0.661.25

Profitability

Return on Equity (TTM)

LTM

141.28%

Passenger Airlines Industry

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

LTM’s Return on Equity of 141.28% is exceptionally high, placing it well beyond the typical range for the Passenger Airlines 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.

LTM vs. LUV: A comparison of their Return on Equity (TTM) against the Passenger Airlines industry benchmark.

Net Profit Margin (TTM)

LTM

8.88%

Passenger Airlines Industry

Max
16.00%
Q3
8.99%
Median
6.35%
Q1
3.18%
Min
-4.22%

LTM’s Net Profit Margin of 8.88% is aligned with the median group of its peers in the Passenger Airlines industry. This indicates its ability to convert revenue into profit is typical for the sector.

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.

LTM vs. LUV: A comparison of their Net Profit Margin (TTM) against the Passenger Airlines industry benchmark.

Operating Profit Margin (TTM)

LTM

14.24%

Passenger Airlines Industry

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

An Operating Profit Margin of 14.24% places LTM in the upper quartile for the Passenger Airlines 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.

LTM vs. LUV: A comparison of their Operating Profit Margin (TTM) against the Passenger Airlines industry benchmark.

Profitability at a Glance

SymbolLTMLUV
Return on Equity (TTM)141.28%4.11%
Return on Assets (TTM)7.44%1.20%
Net Profit Margin (TTM)8.88%1.43%
Operating Profit Margin (TTM)14.24%1.15%
Gross Profit Margin (TTM)27.19%73.31%

Financial Strength

Current Ratio (MRQ)

LTM

0.60

Passenger Airlines Industry

Max
1.44
Q3
0.91
Median
0.73
Q1
0.54
Min
0.18

LTM’s Current Ratio of 0.60 aligns with the median group of the Passenger Airlines 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.

LTM vs. LUV: A comparison of their Current Ratio (MRQ) against the Passenger Airlines industry benchmark.

Debt-to-Equity Ratio (MRQ)

LTM

8.22

Passenger Airlines Industry

Max
10.23
Q3
5.04
Median
1.27
Q1
0.82
Min
0.00

LTM’s leverage is in the upper quartile of the Passenger Airlines industry, with a Debt-to-Equity Ratio of 8.22. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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.

LTM vs. LUV: A comparison of their Debt-to-Equity Ratio (MRQ) against the Passenger Airlines industry benchmark.

Interest Coverage Ratio (TTM)

LTM

2.97

Passenger Airlines Industry

Max
22.60
Q3
17.27
Median
6.75
Q1
1.94
Min
-8.55

LTM’s Interest Coverage Ratio of 2.97 is positioned comfortably within the norm for the Passenger Airlines 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.

LTM vs. LUV: A comparison of their Interest Coverage Ratio (TTM) against the Passenger Airlines industry benchmark.

Financial Strength at a Glance

SymbolLTMLUV
Current Ratio (MRQ)0.600.56
Quick Ratio (MRQ)0.530.45
Debt-to-Equity Ratio (MRQ)8.220.51
Interest Coverage Ratio (TTM)2.979.27

Growth

Revenue Growth

LTM 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

LTM 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)

LTM

2.25%

Passenger Airlines Industry

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

LTM’s Dividend Yield of 2.25% is consistent with its peers in the Passenger Airlines 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.

LTM vs. LUV: A comparison of their Dividend Yield (TTM) against the Passenger Airlines industry benchmark.

Dividend Payout Ratio (TTM)

LTM

49.16%

Passenger Airlines Industry

Max
99.73%
Q3
50.30%
Median
23.18%
Q1
0.00%
Min
0.00%

LTM’s Dividend Payout Ratio of 49.16% is within the typical range for the Passenger Airlines 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.

LTM vs. LUV: A comparison of their Dividend Payout Ratio (TTM) against the Passenger Airlines industry benchmark.

Dividend at a Glance

SymbolLTMLUV
Dividend Yield (TTM)2.25%2.51%
Dividend Payout Ratio (TTM)49.16%59.15%

Valuation

Price-to-Earnings Ratio (TTM)

LTM

11.15

Passenger Airlines Industry

Max
18.74
Q3
11.24
Median
8.33
Q1
6.11
Min
2.97

LTM’s P/E Ratio of 11.15 is within the middle range for the Passenger Airlines 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

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.

LTM vs. LUV: A comparison of their Price-to-Earnings Ratio (TTM) against the Passenger Airlines industry benchmark.

Price-to-Sales Ratio (TTM)

LTM

0.99

Passenger Airlines Industry

Max
1.07
Q3
0.73
Median
0.62
Q1
0.40
Min
0.09

LTM’s P/S Ratio of 0.99 is in the upper echelon for the Passenger Airlines 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

0.62

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.

LTM vs. LUV: A comparison of their Price-to-Sales Ratio (TTM) against the Passenger Airlines industry benchmark.

Price-to-Book Ratio (MRQ)

LTM

12.96

Passenger Airlines Industry

Max
3.47
Q3
3.19
Median
1.94
Q1
1.28
Min
0.50

At 12.96, LTM’s P/B Ratio is at an extreme premium to the Passenger Airlines 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.

LTM vs. LUV: A comparison of their Price-to-Book Ratio (MRQ) against the Passenger Airlines industry benchmark.

Valuation at a Glance

SymbolLTMLUV
Price-to-Earnings Ratio (TTM)11.1543.34
Price-to-Sales Ratio (TTM)0.990.62
Price-to-Book Ratio (MRQ)12.962.31
Price-to-Free Cash Flow Ratio (TTM)9.6445.31