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

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

Company Profile

SymbolLUVODFL
Company NameSouthwest Airlines Co.Old Dominion Freight Line, Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryPassenger AirlinesGround Transportation
Market Capitalization16.38 billion USD31.58 billion USD
ExchangeNYSENasdaqGS
Listing DateJanuary 2, 1980October 24, 1991
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolLUVODFL
5-Day Price Return1.56%-0.58%
13-Week Price Return-4.33%-12.45%
26-Week Price Return4.18%-27.21%
52-Week Price Return16.65%-24.94%
Month-to-Date Return0.81%0.66%
Year-to-Date Return-7.26%-14.83%
10-Day Avg. Volume7.38M1.76M
3-Month Avg. Volume11.72M1.85M
3-Month Volatility40.41%35.49%
Beta1.231.23

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.

ODFL

25.94%

Ground Transportation Industry

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

ODFL’s Return on Equity of 25.94% 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. ODFL: 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.

ODFL

19.42%

Ground Transportation Industry

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

A Net Profit Margin of 19.42% places ODFL in the upper quartile for the Ground Transportation industry, signifying strong profitability and more effective cost management than most of its peers.

LUV vs. ODFL: 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.

ODFL

25.39%

Ground Transportation Industry

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

An Operating Profit Margin of 25.39% places ODFL in the upper quartile for the Ground Transportation industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolLUVODFL
Return on Equity (TTM)4.11%25.94%
Return on Assets (TTM)1.20%19.95%
Net Profit Margin (TTM)1.43%19.42%
Operating Profit Margin (TTM)1.15%25.39%
Gross Profit Margin (TTM)73.31%89.46%

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.

ODFL

1.38

Ground Transportation Industry

Max
2.03
Q3
1.26
Median
0.89
Q1
0.73
Min
0.38

ODFL’s Current Ratio of 1.38 is in the upper quartile for the Ground Transportation industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

LUV vs. ODFL: 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.

ODFL

0.04

Ground Transportation Industry

Max
2.51
Q3
1.51
Median
1.06
Q1
0.47
Min
0.00

Falling into the lower quartile for the Ground Transportation industry, ODFL’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

LUV vs. ODFL: 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.

ODFL

1,476.48

Ground Transportation Industry

Max
51.07
Q3
22.54
Median
7.94
Q1
2.72
Min
-24.57

With an Interest Coverage Ratio of 1,476.48, ODFL demonstrates a superior capacity to service its debt, placing it well above the typical range for the Ground Transportation industry. This stems from either robust earnings or a conservative debt load.

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

Financial Strength at a Glance

SymbolLUVODFL
Current Ratio (MRQ)0.561.38
Quick Ratio (MRQ)0.451.20
Debt-to-Equity Ratio (MRQ)0.510.04
Interest Coverage Ratio (TTM)9.271,476.48

Growth

Revenue Growth

LUV vs. ODFL: 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. ODFL: 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.

ODFL

0.72%

Ground Transportation Industry

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

ODFL’s Dividend Yield of 0.72% is consistent with its peers in the Ground Transportation industry, providing a dividend return that is standard for its sector.

LUV vs. ODFL: 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.

ODFL

20.96%

Ground Transportation Industry

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

ODFL’s Dividend Payout Ratio of 20.96% is within the typical range for the Ground Transportation industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolLUVODFL
Dividend Yield (TTM)2.58%0.72%
Dividend Payout Ratio (TTM)59.15%20.96%

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.

ODFL

29.06

Ground Transportation Industry

Max
42.59
Q3
24.86
Median
16.38
Q1
12.79
Min
4.37

A P/E Ratio of 29.06 places ODFL in the upper quartile for the Ground Transportation industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

LUV vs. ODFL: 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.

ODFL

5.64

Ground Transportation Industry

Max
4.02
Q3
2.20
Median
1.23
Q1
0.87
Min
0.22

With a P/S Ratio of 5.64, ODFL 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. ODFL: 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.

ODFL

8.11

Ground Transportation Industry

Max
4.95
Q3
2.78
Median
1.38
Q1
1.17
Min
0.64

At 8.11, ODFL’s P/B Ratio is at an extreme premium to the Ground Transportation 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 vs. ODFL: A comparison of their Price-to-Book Ratio (MRQ) against their respective Passenger Airlines and Ground Transportation industry benchmarks.

Valuation at a Glance

SymbolLUVODFL
Price-to-Earnings Ratio (TTM)42.2429.06
Price-to-Sales Ratio (TTM)0.605.64
Price-to-Book Ratio (MRQ)2.318.11
Price-to-Free Cash Flow Ratio (TTM)44.1640.75