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

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

Company Profile

SymbolLUVPAYX
Company NameSouthwest Airlines Co.Paychex, Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryPassenger AirlinesProfessional Services
Market Capitalization17.08 billion USD49.89 billion USD
ExchangeNYSENasdaqGS
Listing DateJanuary 2, 1980August 26, 1983
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolLUVPAYX
5-Day Price Return2.94%-0.37%
13-Week Price Return4.20%-11.32%
26-Week Price Return7.68%-7.69%
52-Week Price Return20.76%8.30%
Month-to-Date Return5.14%-4.04%
Year-to-Date Return-3.27%-1.23%
10-Day Avg. Volume7.36M2.15M
3-Month Avg. Volume11.57M2.13M
3-Month Volatility41.62%26.36%
Beta1.230.95

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.

PAYX

41.38%

Professional Services Industry

Max
52.17%
Q3
30.06%
Median
22.21%
Q1
11.67%
Min
-13.44%

In the upper quartile for the Professional Services industry, PAYX’s Return on Equity of 41.38% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

LUV vs. PAYX: A comparison of their Return on Equity (TTM) against their respective Passenger Airlines and Professional Services 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.

PAYX

29.74%

Professional Services Industry

Max
26.06%
Q3
13.34%
Median
7.88%
Q1
3.50%
Min
-2.93%

PAYX’s Net Profit Margin of 29.74% is exceptionally high, placing it well beyond the typical range for the Professional Services industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

LUV vs. PAYX: A comparison of their Net Profit Margin (TTM) against their respective Passenger Airlines and Professional Services 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.

PAYX

39.01%

Professional Services Industry

Max
35.84%
Q3
19.38%
Median
12.54%
Q1
7.36%
Min
-5.21%

PAYX’s Operating Profit Margin of 39.01% is exceptionally high, placing it well above the typical range for the Professional Services 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. PAYX: A comparison of their Operating Profit Margin (TTM) against their respective Passenger Airlines and Professional Services industry benchmarks.

Profitability at a Glance

SymbolLUVPAYX
Return on Equity (TTM)4.11%41.38%
Return on Assets (TTM)1.20%13.58%
Net Profit Margin (TTM)1.43%29.74%
Operating Profit Margin (TTM)1.15%39.01%
Gross Profit Margin (TTM)73.31%90.67%

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.

PAYX

1.28

Professional Services Industry

Max
2.45
Q3
1.65
Median
1.26
Q1
1.10
Min
0.47

PAYX’s Current Ratio of 1.28 aligns with the median group of the Professional Services industry, indicating that its short-term liquidity is in line with its sector peers.

LUV vs. PAYX: A comparison of their Current Ratio (MRQ) against their respective Passenger Airlines and Professional Services 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.

PAYX

1.20

Professional Services Industry

Max
2.63
Q3
1.44
Median
0.91
Q1
0.49
Min
0.00

PAYX’s Debt-to-Equity Ratio of 1.20 is typical for the Professional Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

LUV vs. PAYX: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Passenger Airlines and Professional Services 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.

PAYX

55.47

Professional Services Industry

Max
39.67
Q3
20.05
Median
11.07
Q1
5.36
Min
-2.22

With an Interest Coverage Ratio of 55.47, PAYX demonstrates a superior capacity to service its debt, placing it well above the typical range for the Professional Services industry. This stems from either robust earnings or a conservative debt load.

LUV vs. PAYX: A comparison of their Interest Coverage Ratio (TTM) against their respective Passenger Airlines and Professional Services industry benchmarks.

Financial Strength at a Glance

SymbolLUVPAYX
Current Ratio (MRQ)0.561.28
Quick Ratio (MRQ)0.451.22
Debt-to-Equity Ratio (MRQ)0.511.20
Interest Coverage Ratio (TTM)9.2755.47

Growth

Revenue Growth

LUV vs. PAYX: 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. PAYX: 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.

PAYX

2.88%

Professional Services Industry

Max
5.28%
Q3
2.51%
Median
1.63%
Q1
0.62%
Min
0.00%

With a Dividend Yield of 2.88%, PAYX offers a more attractive income stream than most of its peers in the Professional Services industry, signaling a strong commitment to shareholder returns.

LUV vs. PAYX: A comparison of their Dividend Yield (TTM) against their respective Passenger Airlines and Professional Services 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.

PAYX

87.40%

Professional Services Industry

Max
109.23%
Q3
64.39%
Median
47.00%
Q1
20.35%
Min
0.00%

PAYX’s Dividend Payout Ratio of 87.40% is in the upper quartile for the Professional Services 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.

LUV vs. PAYX: A comparison of their Dividend Payout Ratio (TTM) against their respective Passenger Airlines and Professional Services industry benchmarks.

Dividend at a Glance

SymbolLUVPAYX
Dividend Yield (TTM)2.58%2.88%
Dividend Payout Ratio (TTM)59.15%87.40%

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.

PAYX

30.36

Professional Services Industry

Max
49.59
Q3
36.59
Median
28.13
Q1
18.55
Min
10.07

PAYX’s P/E Ratio of 30.36 is within the middle range for the Professional Services 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. PAYX: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Passenger Airlines and Professional Services 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.

PAYX

9.03

Professional Services Industry

Max
9.54
Q3
5.11
Median
2.10
Q1
0.75
Min
0.11

PAYX’s P/S Ratio of 9.03 is in the upper echelon for the Professional Services 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 vs. PAYX: A comparison of their Price-to-Sales Ratio (TTM) against their respective Passenger Airlines and Professional Services 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.

PAYX

13.75

Professional Services Industry

Max
13.75
Q3
8.87
Median
4.35
Q1
2.43
Min
0.54

PAYX’s P/B Ratio of 13.75 is in the upper tier for the Professional Services 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. PAYX: A comparison of their Price-to-Book Ratio (MRQ) against their respective Passenger Airlines and Professional Services industry benchmarks.

Valuation at a Glance

SymbolLUVPAYX
Price-to-Earnings Ratio (TTM)42.2430.36
Price-to-Sales Ratio (TTM)0.609.03
Price-to-Book Ratio (MRQ)2.3113.75
Price-to-Free Cash Flow Ratio (TTM)44.1629.96