LUV vs. PAYX: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at LUV and PAYX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
Symbol | LUV | PAYX |
---|---|---|
Company Name | Southwest Airlines Co. | Paychex, Inc. |
Country | United States | United States |
GICS Sector | Industrials | Industrials |
GICS Industry | Passenger Airlines | Professional Services |
Market Capitalization | 17.08 billion USD | 49.89 billion USD |
Exchange | NYSE | NasdaqGS |
Listing Date | January 2, 1980 | August 26, 1983 |
Security Type | Common Stock | Common 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.
Historical Performance at a Glance
Symbol | LUV | PAYX |
---|---|---|
5-Day Price Return | 2.94% | -0.37% |
13-Week Price Return | 4.20% | -11.32% |
26-Week Price Return | 7.68% | -7.69% |
52-Week Price Return | 20.76% | 8.30% |
Month-to-Date Return | 5.14% | -4.04% |
Year-to-Date Return | -3.27% | -1.23% |
10-Day Avg. Volume | 7.36M | 2.15M |
3-Month Avg. Volume | 11.57M | 2.13M |
3-Month Volatility | 41.62% | 26.36% |
Beta | 1.23 | 0.95 |
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.
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.
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.
Profitability at a Glance
Symbol | LUV | PAYX |
---|---|---|
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.
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.
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.
Financial Strength at a Glance
Symbol | LUV | PAYX |
---|---|---|
Current Ratio (MRQ) | 0.56 | 1.28 |
Quick Ratio (MRQ) | 0.45 | 1.22 |
Debt-to-Equity Ratio (MRQ) | 0.51 | 1.20 |
Interest Coverage Ratio (TTM) | 9.27 | 55.47 |
Growth
Revenue Growth
EPS Growth
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.
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.
Dividend at a Glance
Symbol | LUV | PAYX |
---|---|---|
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.
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.
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.
Valuation at a Glance
Symbol | LUV | PAYX |
---|---|---|
Price-to-Earnings Ratio (TTM) | 42.24 | 30.36 |
Price-to-Sales Ratio (TTM) | 0.60 | 9.03 |
Price-to-Book Ratio (MRQ) | 2.31 | 13.75 |
Price-to-Free Cash Flow Ratio (TTM) | 44.16 | 29.96 |