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

Updated on August 26, 2025

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

Company Profile

Symbol	LUV	NSC
Company Name	Southwest Airlines Co.	Norfolk Southern Corporation
Country	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry	Passenger Airlines	Ground Transportation
Market Capitalization	17.21 billion USD	63.85 billion USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1980	June 2, 1982
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of LUV and NSC 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. NSC: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	LUV	NSC
5-Day Price Return	4.66%	1.72%
13-Week Price Return	3.18%	18.87%
26-Week Price Return	9.23%	10.13%
52-Week Price Return	23.29%	17.83%
Month-to-Date Return	5.95%	2.37%
Year-to-Date Return	-2.53%	21.26%
10-Day Avg. Volume	7.37M	1.99M
3-Month Avg. Volume	11.58M	1.80M
3-Month Volatility	41.84%	18.02%
Beta	1.23	1.33

Profitability

Return on Equity (TTM)

LUV

4.11%

Passenger Airlines Industry

Max: 49.96%
Q3: 28.15%
Median: 15.41%
Q1: 8.29%
Min: -11.01%

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.

NSC

23.35%

Ground Transportation Industry

Max: 22.11%
Q3: 13.84%
Median: 9.66%
Q1: 7.55%
Min: 0.36%

NSC’s Return on Equity of 23.35% is exceptionally high, placing it well beyond the typical range for the Ground Transportation industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

LUV vs. NSC: A comparison of their Return on Equity (TTM) against their respective Passenger Airlines and Ground Transportation industry benchmarks.

Net Profit Margin (TTM)

LUV

1.43%

Passenger Airlines Industry

Max: 17.65%
Q3: 8.90%
Median: 5.80%
Q1: 2.02%
Min: -3.12%

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.

NSC

27.51%

Ground Transportation Industry

Max: 32.20%
Q3: 18.59%
Median: 7.11%
Q1: 4.13%
Min: -10.38%

A Net Profit Margin of 27.51% places NSC in the upper quartile for the Ground Transportation industry, signifying strong profitability and more effective cost management than most of its peers.

LUV vs. NSC: A comparison of their Net Profit Margin (TTM) against their respective Passenger Airlines and Ground Transportation industry benchmarks.

Operating Profit Margin (TTM)

LUV

1.15%

Passenger Airlines Industry

Max: 22.47%
Q3: 12.33%
Median: 8.62%
Q1: 4.43%
Min: -2.88%

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.

NSC

41.45%

Ground Transportation Industry

Max: 41.31%
Q3: 23.16%
Median: 11.33%
Q1: 6.82%
Min: -12.08%

NSC’s Operating Profit Margin of 41.45% is exceptionally high, placing it well above the typical range for the Ground Transportation industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

LUV vs. NSC: A comparison of their Operating Profit Margin (TTM) against their respective Passenger Airlines and Ground Transportation industry benchmarks.

Profitability at a Glance

Symbol	LUV	NSC
Return on Equity (TTM)	4.11%	23.35%
Return on Assets (TTM)	1.20%	7.66%
Net Profit Margin (TTM)	1.43%	27.51%
Operating Profit Margin (TTM)	1.15%	41.45%
Gross Profit Margin (TTM)	73.31%	51.67%

Financial Strength

Current Ratio (MRQ)

LUV

0.56

Passenger Airlines Industry

Max: 1.46
Q3: 0.94
Median: 0.76
Q1: 0.54
Min: 0.17

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.

NSC

0.79

Ground Transportation Industry

Max: 2.03
Q3: 1.26
Median: 0.89
Q1: 0.73
Min: 0.38

NSC’s Current Ratio of 0.79 aligns with the median group of the Ground Transportation industry, indicating that its short-term liquidity is in line with its sector peers.

LUV vs. NSC: A comparison of their Current Ratio (MRQ) against their respective Passenger Airlines and Ground Transportation industry benchmarks.

Debt-to-Equity Ratio (MRQ)

LUV

0.51

Passenger Airlines Industry

Max: 9.80
Q3: 4.82
Median: 1.30
Q1: 0.89
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.

NSC

1.17

Ground Transportation Industry

Max: 2.51
Q3: 1.51
Median: 1.06
Q1: 0.47
Min: 0.00

NSC’s Debt-to-Equity Ratio of 1.17 is typical for the Ground Transportation industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

LUV vs. NSC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Passenger Airlines and Ground Transportation industry benchmarks.

Interest Coverage Ratio (TTM)

LUV

9.27

Passenger Airlines Industry

Max: 22.60
Q3: 16.29
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.

NSC

5.21

Ground Transportation Industry

Max: 51.07
Q3: 22.54
Median: 7.94
Q1: 2.72
Min: -24.57

NSC’s Interest Coverage Ratio of 5.21 is positioned comfortably within the norm for the Ground Transportation industry, indicating a standard and healthy capacity to cover its interest payments.

LUV vs. NSC: A comparison of their Interest Coverage Ratio (TTM) against their respective Passenger Airlines and Ground Transportation industry benchmarks.

Financial Strength at a Glance

Symbol	LUV	NSC
Current Ratio (MRQ)	0.56	0.79
Quick Ratio (MRQ)	0.45	0.71
Debt-to-Equity Ratio (MRQ)	0.51	1.17
Interest Coverage Ratio (TTM)	9.27	5.21

Growth

Revenue Growth

LUV vs. NSC: 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. NSC: 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

2.58%

Passenger Airlines Industry

Max: 6.71%
Q3: 3.95%
Median: 1.10%
Q1: 0.00%
Min: 0.00%

LUV’s Dividend Yield of 2.58% is consistent with its peers in the Passenger Airlines industry, providing a dividend return that is standard for its sector.

NSC

1.90%

Ground Transportation Industry

Max: 5.44%
Q3: 2.49%
Median: 1.53%
Q1: 0.39%
Min: 0.00%

NSC’s Dividend Yield of 1.90% is consistent with its peers in the Ground Transportation industry, providing a dividend return that is standard for its sector.

LUV vs. NSC: A comparison of their Dividend Yield (TTM) against their respective Passenger Airlines and Ground Transportation industry benchmarks.

Dividend Payout Ratio (TTM)

LUV

59.15%

Passenger Airlines Industry

Max: 71.59%
Q3: 38.54%
Median: 8.16%
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.

NSC

36.42%

Ground Transportation Industry

Max: 137.07%
Q3: 74.71%
Median: 41.16%
Q1: 15.12%
Min: 0.00%

NSC’s Dividend Payout Ratio of 36.42% is within the typical range for the Ground Transportation industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

LUV vs. NSC: A comparison of their Dividend Payout Ratio (TTM) against their respective Passenger Airlines and Ground Transportation industry benchmarks.

Dividend at a Glance

Symbol	LUV	NSC
Dividend Yield (TTM)	2.58%	1.90%
Dividend Payout Ratio (TTM)	59.15%	36.42%

Valuation

Price-to-Earnings Ratio (TTM)

LUV

42.24

Passenger Airlines Industry

Max: 13.29
Q3: 11.94
Median: 8.78
Q1: 7.42
Min: 3.07

At 42.24, 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.

NSC

19.18

Ground Transportation Industry

Max: 42.59
Q3: 24.86
Median: 16.38
Q1: 12.79
Min: 4.37

NSC’s P/E Ratio of 19.18 is within the middle range for the Ground Transportation 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 vs. NSC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Passenger Airlines and Ground Transportation industry benchmarks.

Price-to-Sales Ratio (TTM)

LUV

0.60

Passenger Airlines Industry

Max: 1.09
Q3: 0.74
Median: 0.61
Q1: 0.44
Min: 0.09

LUV’s P/S Ratio of 0.60 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.

NSC

5.28

Ground Transportation Industry

Max: 4.02
Q3: 2.20
Median: 1.23
Q1: 0.87
Min: 0.22

With a P/S Ratio of 5.28, NSC trades at a valuation that eclipses even the highest in the Ground Transportation industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

LUV vs. NSC: A comparison of their Price-to-Sales Ratio (TTM) against their respective Passenger Airlines and Ground Transportation industry benchmarks.

Price-to-Book Ratio (MRQ)

LUV

2.31

Passenger Airlines Industry

Max: 3.44
Q3: 2.89
Median: 1.84
Q1: 1.22
Min: 0.56

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.

NSC

3.90

Ground Transportation Industry

Max: 4.95
Q3: 2.78
Median: 1.38
Q1: 1.17
Min: 0.64

NSC’s P/B Ratio of 3.90 is in the upper tier for the Ground Transportation industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

LUV vs. NSC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Passenger Airlines and Ground Transportation industry benchmarks.

Valuation at a Glance

Symbol	LUV	NSC
Price-to-Earnings Ratio (TTM)	42.24	19.18
Price-to-Sales Ratio (TTM)	0.60	5.28
Price-to-Book Ratio (MRQ)	2.31	3.90
Price-to-Free Cash Flow Ratio (TTM)	44.16	31.74