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

Updated on August 28, 2025

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

Company Profile

Symbol	LUV	PCAR
Company Name	Southwest Airlines Co.	PACCAR Inc
Country	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry	Passenger Airlines	Machinery
Market Capitalization	17.08 billion USD	52.78 billion USD
Exchange	NYSE	NasdaqGS
Listing Date	January 2, 1980	March 17, 1980
Security Type	Common Stock	Common Stock

Historical Performance

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

Historical Performance at a Glance

Symbol	LUV	PCAR
5-Day Price Return	2.94%	1.06%
13-Week Price Return	4.20%	6.55%
26-Week Price Return	7.68%	-6.25%
52-Week Price Return	20.76%	5.49%
Month-to-Date Return	5.14%	1.77%
Year-to-Date Return	-3.27%	-3.37%
10-Day Avg. Volume	7.36M	2.17M
3-Month Avg. Volume	11.57M	2.83M
3-Month Volatility	41.62%	24.40%
Beta	1.23	0.96

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.

PCAR

16.81%

Machinery Industry

Max: 34.68%
Q3: 19.06%
Median: 13.13%
Q1: 8.53%
Min: -4.87%

PCAR’s Return on Equity of 16.81% is on par with the norm for the Machinery industry, indicating its profitability relative to shareholder equity is typical for the sector.

LUV vs. PCAR: A comparison of their Return on Equity (TTM) against their respective Passenger Airlines and Machinery 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.

PCAR

9.88%

Machinery Industry

Max: 19.74%
Q3: 11.24%
Median: 8.13%
Q1: 5.38%
Min: -1.11%

PCAR’s Net Profit Margin of 9.88% is aligned with the median group of its peers in the Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.

LUV vs. PCAR: A comparison of their Net Profit Margin (TTM) against their respective Passenger Airlines and Machinery 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.

PCAR

14.86%

Machinery Industry

Max: 26.63%
Q3: 16.15%
Median: 11.27%
Q1: 7.72%
Min: -4.91%

PCAR’s Operating Profit Margin of 14.86% is around the midpoint for the Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

Symbol	LUV	PCAR
Return on Equity (TTM)	4.11%	16.81%
Return on Assets (TTM)	1.20%	7.08%
Net Profit Margin (TTM)	1.43%	9.88%
Operating Profit Margin (TTM)	1.15%	14.86%
Gross Profit Margin (TTM)	73.31%	21.19%

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.

PCAR

1.64

Machinery Industry

Max: 3.83
Q3: 2.32
Median: 1.72
Q1: 1.28
Min: 0.78

PCAR’s Current Ratio of 1.64 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.

LUV vs. PCAR: A comparison of their Current Ratio (MRQ) against their respective Passenger Airlines and Machinery 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.

PCAR

0.84

Machinery Industry

Max: 1.49
Q3: 0.75
Median: 0.44
Q1: 0.26
Min: 0.00

PCAR’s leverage is in the upper quartile of the Machinery industry, with a Debt-to-Equity Ratio of 0.84. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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

PCAR

27.70

Machinery Industry

Max: 67.55
Q3: 33.79
Median: 13.87
Q1: 7.97
Min: -1.43

PCAR’s Interest Coverage Ratio of 27.70 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

Symbol	LUV	PCAR
Current Ratio (MRQ)	0.56	1.64
Quick Ratio (MRQ)	0.45	1.24
Debt-to-Equity Ratio (MRQ)	0.51	0.84
Interest Coverage Ratio (TTM)	9.27	27.70

Growth

Revenue Growth

LUV vs. PCAR: 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. PCAR: 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.

PCAR

4.31%

Machinery Industry

Max: 5.32%
Q3: 2.84%
Median: 1.87%
Q1: 1.09%
Min: 0.00%

With a Dividend Yield of 4.31%, PCAR offers a more attractive income stream than most of its peers in the Machinery industry, signaling a strong commitment to shareholder returns.

LUV vs. PCAR: A comparison of their Dividend Yield (TTM) against their respective Passenger Airlines and Machinery 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.

PCAR

72.73%

Machinery Industry

Max: 202.17%
Q3: 98.65%
Median: 55.54%
Q1: 29.03%
Min: 0.00%

PCAR’s Dividend Payout Ratio of 72.73% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

Symbol	LUV	PCAR
Dividend Yield (TTM)	2.58%	4.31%
Dividend Payout Ratio (TTM)	59.15%	72.73%

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.

PCAR

16.89

Machinery Industry

Max: 53.66
Q3: 31.29
Median: 22.00
Q1: 16.18
Min: 7.00

PCAR’s P/E Ratio of 16.89 is within the middle range for the Machinery 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. PCAR: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Passenger Airlines and Machinery 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.

PCAR

1.67

Machinery Industry

Max: 5.04
Q3: 2.72
Median: 1.67
Q1: 1.04
Min: 0.24

PCAR’s P/S Ratio of 1.67 aligns with the market consensus for the Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

LUV vs. PCAR: A comparison of their Price-to-Sales Ratio (TTM) against their respective Passenger Airlines and Machinery 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.

PCAR

2.63

Machinery Industry

Max: 7.23
Q3: 3.90
Median: 2.52
Q1: 1.47
Min: 0.49

PCAR’s P/B Ratio of 2.63 is within the conventional range for the Machinery 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.

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

Valuation at a Glance

Symbol	LUV	PCAR
Price-to-Earnings Ratio (TTM)	42.24	16.89
Price-to-Sales Ratio (TTM)	0.60	1.67
Price-to-Book Ratio (MRQ)	2.31	2.63
Price-to-Free Cash Flow Ratio (TTM)	44.16	18.02