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

Updated on October 5, 2025

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

Company Profile

Symbol	LUV	RKLB
Company Name	Southwest Airlines Co.	Rocket Lab Corporation
Country	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry	Passenger Airlines	Aerospace & Defense
Market Capitalization	17.08 billion USD	27.18 billion USD
Exchange	NYSE	NasdaqCM
Listing Date	January 2, 1980	November 24, 2020
Security Type	Common Stock	Common Stock

Historical Performance

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

Historical Performance at a Glance

Symbol	LUV	RKLB
5-Day Price Return	-0.73%	19.46%
13-Week Price Return	-4.58%	57.49%
26-Week Price Return	-3.16%	214.09%
52-Week Price Return	9.98%	478.37%
Month-to-Date Return	1.91%	17.22%
Year-to-Date Return	-3.27%	120.49%
10-Day Avg. Volume	9.33M	25.87M
3-Month Avg. Volume	10.47M	23.39M
3-Month Volatility	39.87%	76.06%
Beta	1.20	2.17

Profitability

Return on Equity (TTM)

LUV

4.11%

Passenger Airlines Industry

Max: 49.96%
Q3: 27.29%
Median: 16.68%
Q1: 8.40%
Min: -15.23%

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.

RKLB

-48.14%

Aerospace & Defense Industry

Max: 37.11%
Q3: 20.14%
Median: 11.72%
Q1: 6.30%
Min: -6.24%

RKLB has a negative Return on Equity of -48.14%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

LUV vs. RKLB: A comparison of their Return on Equity (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Net Profit Margin (TTM)

LUV

1.43%

Passenger Airlines Industry

Max: 16.00%
Q3: 8.99%
Median: 6.35%
Q1: 3.18%
Min: -4.22%

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.

RKLB

-45.87%

Aerospace & Defense Industry

Max: 13.66%
Q3: 8.61%
Median: 6.59%
Q1: 4.92%
Min: 1.01%

RKLB has a negative Net Profit Margin of -45.87%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

LUV vs. RKLB: A comparison of their Net Profit Margin (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Operating Profit Margin (TTM)

LUV

1.15%

Passenger Airlines Industry

Max: 22.47%
Q3: 12.67%
Median: 8.62%
Q1: 4.63%
Min: -2.30%

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.

RKLB

-44.08%

Aerospace & Defense Industry

Max: 22.35%
Q3: 12.83%
Median: 9.29%
Q1: 6.38%
Min: -2.15%

RKLB has a negative Operating Profit Margin of -44.08%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

LUV vs. RKLB: A comparison of their Operating Profit Margin (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Profitability at a Glance

Symbol	LUV	RKLB
Return on Equity (TTM)	4.11%	-48.14%
Return on Assets (TTM)	1.20%	-17.98%
Net Profit Margin (TTM)	1.43%	-45.87%
Operating Profit Margin (TTM)	1.15%	-44.08%
Gross Profit Margin (TTM)	73.31%	29.04%

Financial Strength

Current Ratio (MRQ)

LUV

0.56

Passenger Airlines Industry

Max: 1.44
Q3: 0.91
Median: 0.73
Q1: 0.54
Min: 0.18

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.

RKLB

2.67

Aerospace & Defense Industry

Max: 3.35
Q3: 2.03
Median: 1.24
Q1: 1.04
Min: 0.77

RKLB’s Current Ratio of 2.67 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

LUV vs. RKLB: A comparison of their Current Ratio (MRQ) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio (MRQ)

LUV

0.51

Passenger Airlines Industry

Max: 10.23
Q3: 5.04
Median: 1.27
Q1: 0.82
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.

RKLB

0.63

Aerospace & Defense Industry

Max: 1.72
Q3: 0.96
Median: 0.63
Q1: 0.37
Min: 0.03

RKLB’s Debt-to-Equity Ratio of 0.63 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

LUV vs. RKLB: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio (TTM)

LUV

9.27

Passenger Airlines Industry

Max: 22.60
Q3: 17.27
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.

RKLB

-45.87

Aerospace & Defense Industry

Max: 36.57
Q3: 19.08
Median: 7.25
Q1: 2.65
Min: -7.63

RKLB has a negative Interest Coverage Ratio of -45.87. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

LUV vs. RKLB: A comparison of their Interest Coverage Ratio (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

Symbol	LUV	RKLB
Current Ratio (MRQ)	0.56	2.67
Quick Ratio (MRQ)	0.45	2.21
Debt-to-Equity Ratio (MRQ)	0.51	0.63
Interest Coverage Ratio (TTM)	9.27	-45.87

Growth

Revenue Growth

LUV vs. RKLB: 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. RKLB: 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

2.45%

Passenger Airlines Industry

Max: 7.04%
Q3: 3.76%
Median: 1.72%
Q1: 0.00%
Min: 0.00%

LUV’s Dividend Yield of 2.45% is consistent with its peers in the Passenger Airlines industry, providing a dividend return that is standard for its sector.

RKLB

0.00%

Aerospace & Defense Industry

Max: 2.72%
Q3: 1.45%
Median: 0.48%
Q1: 0.08%
Min: 0.00%

RKLB currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

LUV vs. RKLB: A comparison of their Dividend Yield (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio (TTM)

LUV

59.15%

Passenger Airlines Industry

Max: 99.73%
Q3: 50.30%
Median: 23.18%
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.

RKLB

0.00%

Aerospace & Defense Industry

Max: 110.40%
Q3: 50.43%
Median: 17.11%
Q1: 0.46%
Min: 0.00%

RKLB has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

LUV vs. RKLB: A comparison of their Dividend Payout Ratio (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Dividend at a Glance

Symbol	LUV	RKLB
Dividend Yield (TTM)	2.45%	0.00%
Dividend Payout Ratio (TTM)	59.15%	0.00%

Valuation

Price-to-Earnings Ratio (TTM)

LUV

44.50

Passenger Airlines Industry

Max: 18.74
Q3: 11.24
Median: 8.33
Q1: 6.11
Min: 2.97

At 44.50, 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.

RKLB

Aerospace & Defense Industry

Max: 67.20
Q3: 55.74
Median: 33.28
Q1: 27.49
Min: 15.02

P/E Ratio data for RKLB is currently unavailable.

LUV vs. RKLB: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio (TTM)

LUV

0.64

Passenger Airlines Industry

Max: 1.07
Q3: 0.73
Median: 0.62
Q1: 0.40
Min: 0.09

LUV’s P/S Ratio of 0.64 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.

RKLB

53.90

Aerospace & Defense Industry

Max: 9.06
Q3: 4.87
Median: 2.47
Q1: 1.61
Min: 0.33

With a P/S Ratio of 53.90, RKLB trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

LUV vs. RKLB: A comparison of their Price-to-Sales Ratio (TTM) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio (MRQ)

LUV

2.31

Passenger Airlines Industry

Max: 3.47
Q3: 3.19
Median: 1.94
Q1: 1.28
Min: 0.50

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.

RKLB

23.97

Aerospace & Defense Industry

Max: 14.90
Q3: 8.93
Median: 4.70
Q1: 3.03
Min: 0.83

At 23.97, RKLB’s P/B Ratio is at an extreme premium to the Aerospace & Defense 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. RKLB: A comparison of their Price-to-Book Ratio (MRQ) against their respective Passenger Airlines and Aerospace & Defense industry benchmarks.

Valuation at a Glance

Symbol	LUV	RKLB
Price-to-Earnings Ratio (TTM)	44.50	--
Price-to-Sales Ratio (TTM)	0.64	53.90
Price-to-Book Ratio (MRQ)	2.31	23.97
Price-to-Free Cash Flow Ratio (TTM)	46.52	--