LUV vs. NSC: Southwest Airlines vs. Norfolk Southern Stock Comparison
How do Southwest Airlines (LUV) and Norfolk Southern (NSC) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Southwest Airlines (LUV) and Norfolk Southern (NSC) both fall under the Transportation industry group, but LUV is classified in Passenger Airlines while NSC is classified in Ground Transportation.
| Profile Item | LUV | NSC |
|---|---|---|
| Name | Southwest Airlines Co. | Norfolk Southern Corp. |
| Country/Region | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Transportation | Transportation |
| GICS Industry | Passenger Airlines | Ground Transportation |
| GICS Sub-Industry | Passenger Airlines | Rail Transportation |
| Market Capitalization | 21.76 billion USD | 71.86 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | January 2, 1980 | June 2, 1982 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | LUV | NSC |
|---|---|---|
| Total Return (1Y) | 44.35% | 16.63% |
| Total Return (3Y, Annualized) | 28.08% | 21.35% |
| Total Return (5Y, Annualized) | -0.31% | 4.94% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | LUV | NSC |
|---|---|---|
| Volatility (1Y, Annualized) | 44.46% | 21.75% |
| Beta (5Y) | 1.19 | 1.19 |
| Max Drawdown (5Y) | -55.39% | -35.64% |
| Avg. Volume (3M) | 5.76M | 1.02M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | LUV | NSC |
|---|---|---|
| Sharpe Ratio (1Y) | 0.90 | 0.57 |
| Sortino Ratio (1Y) | 1.51 | 0.86 |
Profitability
ROE (TTM)
Both Southwest Airlines (LUV) at 13.94% and Norfolk Southern (NSC) at 16.84% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.
LUV
Transportation industry group
13.94%
- Max
- 45.08%
- Q3
- 22.02%
- LUV
- 13.94%
- Median
- 13.94%
- Q1
- 2.89%
- Min
- -10.45%
NSC
Transportation industry group
16.84%
- Max
- 45.08%
- Q3
- 22.02%
- NSC
- 16.84%
- Median
- 13.94%
- Q1
- 2.89%
- Min
- -10.45%
Net Margin (TTM)
Both Southwest Airlines (LUV) at 3.34% and Norfolk Southern (NSC) at 20.71% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.
LUV
Transportation industry group
3.34%
- Max
- 50.36%
- Q3
- 21.18%
- Median
- 5.58%
- LUV
- 3.34%
- Q1
- 1.55%
- Min
- -11.37%
NSC
Transportation industry group
20.71%
- Max
- 50.36%
- Q3
- 21.18%
- NSC
- 20.71%
- Median
- 5.58%
- Q1
- 1.55%
- Min
- -11.37%
Operating Margin (TTM)
Norfolk Southern (NSC) at 35.42% carries a top-quartile operating margin, while Southwest Airlines (LUV) at 4.49% operates in the bottom quartile.
LUV
Transportation industry group
4.49%
- Max
- 59.18%
- Q3
- 29.30%
- Median
- 11.50%
- Q1
- 4.62%
- LUV
- 4.49%
- Min
- -8.91%
NSC
Transportation industry group
35.42%
- Max
- 59.18%
- NSC
- 35.42%
- Q3
- 29.30%
- Median
- 11.50%
- Q1
- 4.62%
- Min
- -8.91%
Profitability Metrics
| Metric | LUV | NSC |
|---|---|---|
| ROE (TTM) | 13.94% | 16.84% |
| ROA (TTM) | 3.05% | 6.03% |
| Net Margin (TTM) | 3.34% | 20.71% |
| Operating Margin (TTM) | 4.49% | 35.42% |
| Gross Margin (TTM) | 22.14% | 44.68% |
Growth
Revenue Growth
Both Southwest Airlines (LUV) at 2.11% and Norfolk Southern (NSC) at 0.47% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both Southwest Airlines (LUV) at 3.95% and Norfolk Southern (NSC) at 10.20% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | LUV | NSC |
|---|---|---|
| Revenue Growth (YoY) | 2.11% | 0.47% |
| Revenue Growth (3Y CAGR) | 5.63% | -1.50% |
| EPS Growth (YoY) | 3.95% | 10.20% |
| EPS Growth (3Y CAGR) | -3.16% | -2.79% |
Financial Strength
Current Ratio (MRQ)
Norfolk Southern (NSC) at 0.90 keeps current ratio within its industry’s typical mid-range, while Southwest Airlines (LUV) at 0.47 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for LUV.
LUV
Transportation industry group
0.47
- Max
- 2.58
- Q3
- 1.62
- Median
- 1.16
- Q1
- 0.78
- LUV
- 0.47
- Min
- 0.22
NSC
Transportation industry group
0.90
- Max
- 2.58
- Q3
- 1.62
- Median
- 1.16
- NSC
- 0.90
- Q1
- 0.78
- Min
- 0.22
Debt / Equity (MRQ)
Both Southwest Airlines (LUV) at 0.94 and Norfolk Southern (NSC) at 1.02 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
LUV
Transportation industry group
0.94
- Max
- 2.75
- Q3
- 1.37
- LUV
- 0.94
- Median
- 0.78
- Q1
- 0.35
- Min
- 0.00
NSC
Transportation industry group
1.02
- Max
- 2.75
- Q3
- 1.37
- NSC
- 1.02
- Median
- 0.78
- Q1
- 0.35
- Min
- 0.00
Financial Strength Metrics
| Metric | LUV | NSC |
|---|---|---|
| Current Ratio (MRQ) | 0.47 | 0.90 |
| Debt / Equity (MRQ) | 0.94 | 1.02 |
| Net Debt / EBITDA | 1.21 | 2.68 |
Dividends
Dividend Yield (TTM)
Both Southwest Airlines (LUV) at 1.62% and Norfolk Southern (NSC) at 1.65% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.
LUV
Transportation industry group
1.62%
- Max
- 4.68%
- Q3
- 1.99%
- LUV
- 1.62%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
NSC
Transportation industry group
1.65%
- Max
- 4.68%
- Q3
- 1.99%
- NSC
- 1.65%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Southwest Airlines (LUV) at 35.12% pays out a band-typical share of earnings, while Norfolk Southern (NSC) at 45.26% distributes more than its industry norm — less retained, thinner cover.
LUV
Transportation industry group
35.12%
- Max
- 100.89%
- Q3
- 41.68%
- LUV
- 35.12%
- Median
- 20.43%
- Q1
- 0.00%
- Min
- 0.00%
NSC
Transportation industry group
45.26%
- Max
- 100.89%
- NSC
- 45.26%
- Q3
- 41.68%
- Median
- 20.43%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | LUV | NSC |
|---|---|---|
| Dividend Yield (TTM) | 1.62% | 1.65% |
| Dividend Payout Ratio (TTM) | 35.12% | 45.26% |
Valuation
P/E Ratio (TTM)
Both Southwest Airlines (LUV) at 21.68 and Norfolk Southern (NSC) at 26.82 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.
LUV
Transportation industry group
21.68
- Max
- 46.76
- Q3
- 30.87
- LUV
- 21.68
- Median
- 20.58
- Q1
- 10.44
- Min
- 0.00
NSC
Transportation industry group
26.82
- Max
- 46.76
- Q3
- 30.87
- NSC
- 26.82
- Median
- 20.58
- Q1
- 10.44
- Min
- 0.00
P/S Ratio (TTM)
Southwest Airlines (LUV) at 0.69 prices around its industry’s typical P/S ratio, while Norfolk Southern (NSC) at 5.54 clears its benchmark range — NSC looks notably rich on sales.
LUV
Transportation industry group
0.69
- Max
- 4.35
- Q3
- 2.07
- Median
- 0.93
- LUV
- 0.69
- Q1
- 0.53
- Min
- 0.04
NSC
Transportation industry group
5.54
- NSC
- 5.54
- Max
- 4.35
- Q3
- 2.07
- Median
- 0.93
- Q1
- 0.53
- Min
- 0.04
P/B Ratio (MRQ)
Southwest Airlines (LUV) at 2.97 is valued about in line with its industry on P/B ratio, while Norfolk Southern (NSC) at 4.30 carries an above-peer premium to book — NSC is pricier on assets.
LUV
Transportation industry group
2.97
- Max
- 6.29
- Q3
- 3.39
- LUV
- 2.97
- Median
- 1.90
- Q1
- 1.03
- Min
- -2.07
NSC
Transportation industry group
4.30
- Max
- 6.29
- NSC
- 4.30
- Q3
- 3.39
- Median
- 1.90
- Q1
- 1.03
- Min
- -2.07
Valuation Metrics
| Metric | LUV | NSC |
|---|---|---|
| P/E Ratio (TTM) | 21.68 | 26.82 |
| P/S Ratio (TTM) | 0.69 | 5.54 |
| P/B Ratio (MRQ) | 2.97 | 4.30 |
| Free Cash Flow Yield (TTM) | -2.82% | 2.25% |