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

Updated on November 21, 2025

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

Company Profile

Symbol	LUV	NOC
Company Name	Southwest Airlines Co.	Northrop Grumman Corporation
Country	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry	Passenger Airlines	Aerospace & Defense
Market Capitalization	17.00 billion USD	79.76 billion USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1980	December 31, 1981
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of LUV and NOC 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.

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

Historical Performance at a Glance

Symbol	LUV	NOC
5-Day Price Return	0.49%	-0.88%
13-Week Price Return	4.19%	-4.45%
26-Week Price Return	4.89%	18.55%
52-Week Price Return	1.36%	7.22%
Month-to-Date Return	8.32%	-4.36%
Year-to-Date Return	-2.38%	18.90%
10-Day Avg. Volume	8.72M	0.70M
3-Month Avg. Volume	9.81M	0.76M
3-Month Volatility	34.95%	17.09%
Beta	1.18	0.06

Profitability

Return on Equity (TTM)

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.

NOC

26.04%

Aerospace & Defense Industry

Max: 43.89%
Q3: 23.64%
Median: 12.98%
Q1: 8.07%
Min: -2.55%

In the upper quartile for the Aerospace & Defense industry, NOC’s Return on Equity of 26.04% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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

Net Profit Margin (TTM)

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.

NOC

9.82%

Aerospace & Defense Industry

Max: 14.96%
Q3: 9.50%
Median: 6.59%
Q1: 4.45%
Min: 1.01%

A Net Profit Margin of 9.82% places NOC in the upper quartile for the Aerospace & Defense industry, signifying strong profitability and more effective cost management than most of its peers.

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

Operating Profit Margin (TTM)

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.

NOC

10.58%

Aerospace & Defense Industry

Max: 17.97%
Q3: 12.09%
Median: 9.29%
Q1: 6.41%
Min: -1.59%

NOC’s Operating Profit Margin of 10.58% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

Symbol	LUV	NOC
Return on Equity (TTM)	4.27%	26.04%
Return on Assets (TTM)	1.22%	8.18%
Net Profit Margin (TTM)	1.38%	9.82%
Operating Profit Margin (TTM)	1.14%	10.58%
Gross Profit Margin (TTM)	73.50%	19.42%

Financial Strength

Current Ratio (MRQ)

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.

NOC

1.11

Aerospace & Defense Industry

Max: 3.37
Q3: 2.01
Median: 1.22
Q1: 1.07
Min: 0.68

NOC’s Current Ratio of 1.11 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

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

Debt-to-Equity Ratio (MRQ)

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.

NOC

0.98

Aerospace & Defense Industry

Max: 1.89
Q3: 0.99
Median: 0.63
Q1: 0.39
Min: 0.03

NOC’s Debt-to-Equity Ratio of 0.98 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 vs. NOC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio (TTM)

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.

NOC

9.08

Aerospace & Defense Industry

Max: 29.86
Q3: 19.49
Median: 7.09
Q1: 2.62
Min: -7.63

NOC’s Interest Coverage Ratio of 9.08 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

Symbol	LUV	NOC
Current Ratio (MRQ)	0.49	1.11
Quick Ratio (MRQ)	0.38	0.88
Debt-to-Equity Ratio (MRQ)	0.53	0.98
Interest Coverage Ratio (TTM)	9.27	9.08

Growth

Revenue Growth

LUV vs. NOC: 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

LUV vs. NOC: 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)

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.

NOC

1.59%

Aerospace & Defense Industry

Max: 2.87%
Q3: 1.46%
Median: 0.58%
Q1: 0.10%
Min: 0.00%

With a Dividend Yield of 1.59%, NOC offers a more attractive income stream than most of its peers in the Aerospace & Defense industry, signaling a strong commitment to shareholder returns.

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

Dividend Payout Ratio (TTM)

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.

NOC

31.43%

Aerospace & Defense Industry

Max: 110.40%
Q3: 51.46%
Median: 20.20%
Q1: 4.21%
Min: 0.00%

NOC’s Dividend Payout Ratio of 31.43% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

Symbol	LUV	NOC
Dividend Yield (TTM)	2.36%	1.59%
Dividend Payout Ratio (TTM)	55.49%	31.43%

Valuation

Price-to-Earnings Ratio (TTM)

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.

NOC

19.82

Aerospace & Defense Industry

Max: 94.22
Q3: 53.31
Median: 32.27
Q1: 24.64
Min: 14.57

In the lower quartile for the Aerospace & Defense industry, NOC’s P/E Ratio of 19.82 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

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

Price-to-Sales Ratio (TTM)

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.

NOC

1.95

Aerospace & Defense Industry

Max: 7.20
Q3: 3.95
Median: 2.35
Q1: 1.71
Min: 0.32

NOC’s P/S Ratio of 1.95 aligns with the market consensus for the Aerospace & Defense industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

Price-to-Book Ratio (MRQ)

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.

NOC

5.46

Aerospace & Defense Industry

Max: 18.61
Q3: 9.58
Median: 5.45
Q1: 3.11
Min: 0.94

NOC’s P/B Ratio of 5.46 is within the conventional range for the Aerospace & Defense 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.

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

Valuation at a Glance

Symbol	LUV	NOC
Price-to-Earnings Ratio (TTM)	44.78	19.82
Price-to-Sales Ratio (TTM)	0.62	1.95
Price-to-Book Ratio (MRQ)	2.16	5.46
Price-to-Free Cash Flow Ratio (TTM)	45.26	21.79