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LUV vs. UNP: Southwest Airlines vs. Union Pacific Stock Comparison

How do Southwest Airlines (LUV) and Union Pacific (UNP) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Southwest Airlines (LUV) and Union Pacific (UNP) both fall under the Transportation industry group, but LUV is classified in Passenger Airlines while UNP is classified in Ground Transportation.

Company profile comparison for Southwest Airlines (LUV) and Union Pacific (UNP)
Profile ItemLUVUNP
NameSouthwest Airlines Co.Union Pacific Corp.
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupTransportationTransportation
GICS IndustryPassenger AirlinesGround Transportation
GICS Sub-IndustryPassenger AirlinesRail Transportation
Market Capitalization21.76 billion USD172.38 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1980January 2, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

LUV
UNP
GSPC
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Southwest Airlines (LUV) vs. Union Pacific (UNP), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Southwest Airlines (LUV) and Union Pacific (UNP). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Southwest Airlines (LUV) and Union Pacific (UNP). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Southwest Airlines (LUV) and Union Pacific (UNP)
MetricLUVUNP
Total Return (1Y)44.35%36.74%
Total Return (3Y, Annualized)28.08%14.66%
Total Return (5Y, Annualized)-0.31%6.62%

Risk Profile

Drawdown History

LUV
UNP
GSPC
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Southwest Airlines (LUV) vs. Union Pacific (UNP), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Southwest Airlines (LUV) and Union Pacific (UNP). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Southwest Airlines (LUV) and Union Pacific (UNP)
MetricLUVUNP
Volatility (1Y, Annualized)44.46%23.12%
Beta (5Y)1.190.84
Max Drawdown (5Y)-55.39%-31.83%
Avg. Volume (3M)5.76M2.49M

Risk-Adjusted Performance

Risk-Return Positioning

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LUV and UNP are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Southwest Airlines (LUV) and Union Pacific (UNP)
MetricLUVUNP
Sharpe Ratio (1Y)0.901.40
Sortino Ratio (1Y)1.512.22

Profitability

ROE (TTM)

Union Pacific (UNP) at 38.75% sits in the top ROE quartile, while Southwest Airlines (LUV) at 13.94% is closer to the peer norm — stronger capital efficiency for UNP.

LUV

Transportation industry group

13.94%

Max
45.08%
Q3
22.02%
LUV
13.94%
Median
13.94%
Q1
2.89%
Min
-10.45%

UNP

Transportation industry group

38.75%

Max
45.08%
UNP
38.75%
Q3
22.02%
Median
13.94%
Q1
2.89%
Min
-10.45%
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Southwest Airlines (LUV) vs. Union Pacific (UNP): A comparison of their ROE against the Transportation industry group benchmark.

Net Margin (TTM)

Union Pacific (UNP) at 28.90% retains a top-quartile share of revenue as profit, ahead of Southwest Airlines (LUV) at 3.34%, which keeps about the industry-typical share.

LUV

Transportation industry group

3.34%

Max
50.36%
Q3
21.18%
Median
5.58%
LUV
3.34%
Q1
1.55%
Min
-11.37%

UNP

Transportation industry group

28.90%

Max
50.36%
UNP
28.90%
Q3
21.18%
Median
5.58%
Q1
1.55%
Min
-11.37%
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Southwest Airlines (LUV) vs. Union Pacific (UNP): A comparison of their net margin against the Transportation industry group benchmark.

Operating Margin (TTM)

Union Pacific (UNP) at 41.34% carries a top-quartile operating margin, while Southwest Airlines (LUV) at 4.49% operates in the bottom quartile.

LUV

Transportation industry group

4.49%

Max
59.18%
Q3
29.30%
Median
11.50%
Q1
4.62%
LUV
4.49%
Min
-8.91%

UNP

Transportation industry group

41.34%

Max
59.18%
UNP
41.34%
Q3
29.30%
Median
11.50%
Q1
4.62%
Min
-8.91%
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Southwest Airlines (LUV) vs. Union Pacific (UNP): A comparison of their operating margin against the Transportation industry group benchmark.

Profitability Metrics

Profitability metrics for Southwest Airlines (LUV) and Union Pacific (UNP)
MetricLUVUNP
ROE (TTM)13.94%38.75%
ROA (TTM)3.05%9.51%
Net Margin (TTM)3.34%28.90%
Operating Margin (TTM)4.49%41.34%
Gross Margin (TTM)22.14%55.77%

Growth

Revenue Growth

Both Southwest Airlines (LUV) at 2.11% and Union Pacific (UNP) at 1.07% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Southwest Airlines (LUV) vs. Union Pacific (UNP): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Southwest Airlines (LUV) at 3.95% and Union Pacific (UNP) at 8.03% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Southwest Airlines (LUV) vs. Union Pacific (UNP): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Southwest Airlines (LUV) and Union Pacific (UNP)
MetricLUVUNP
Revenue Growth (YoY)2.11%1.07%
Revenue Growth (3Y CAGR)5.63%-0.49%
EPS Growth (YoY)3.95%8.03%
EPS Growth (3Y CAGR)-3.16%2.24%

Financial Strength

Current Ratio (MRQ)

Union Pacific (UNP) at 1.16 keeps current ratio within its industry’s typical mid-range, while Southwest Airlines (LUV) at 0.47 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for LUV.

LUV

Transportation industry group

0.47

Max
2.58
Q3
1.62
Median
1.16
Q1
0.78
LUV
0.47
Min
0.22

UNP

Transportation industry group

1.16

Max
2.58
Q3
1.62
Median
1.16
UNP
1.16
Q1
0.78
Min
0.22
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Southwest Airlines (LUV) vs. Union Pacific (UNP): A comparison of their current ratio against the Transportation industry group benchmark.

Debt / Equity (MRQ)

Southwest Airlines (LUV) at 0.94 carries an industry-typical debt-to-equity mix, while Union Pacific (UNP) at 1.41 uses more debt funding than most peers.

LUV

Transportation industry group

0.94

Max
2.75
Q3
1.37
LUV
0.94
Median
0.78
Q1
0.35
Min
0.00

UNP

Transportation industry group

1.41

Max
2.75
UNP
1.41
Q3
1.37
Median
0.78
Q1
0.35
Min
0.00
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Southwest Airlines (LUV) vs. Union Pacific (UNP): A comparison of their debt-to-equity ratio against the Transportation industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Southwest Airlines (LUV) and Union Pacific (UNP)
MetricLUVUNP
Current Ratio (MRQ)0.471.16
Debt / Equity (MRQ)0.941.41
Net Debt / EBITDA1.212.11

Dividends

Dividend Yield (TTM)

Both Southwest Airlines (LUV) at 1.62% and Union Pacific (UNP) at 1.87% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

LUV

Transportation industry group

1.62%

Max
4.68%
Q3
1.99%
LUV
1.62%
Median
0.74%
Q1
0.00%
Min
0.00%

UNP

Transportation industry group

1.87%

Max
4.68%
Q3
1.99%
UNP
1.87%
Median
0.74%
Q1
0.00%
Min
0.00%
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Southwest Airlines (LUV) vs. Union Pacific (UNP): A comparison of their dividend yield against the Transportation industry group benchmark.

Dividend Payout Ratio (TTM)

Southwest Airlines (LUV) at 35.12% pays out a band-typical share of earnings, while Union Pacific (UNP) at 43.37% distributes more than its industry norm — less retained, thinner cover.

LUV

Transportation industry group

35.12%

Max
100.89%
Q3
41.68%
LUV
35.12%
Median
20.43%
Q1
0.00%
Min
0.00%

UNP

Transportation industry group

43.37%

Max
100.89%
UNP
43.37%
Q3
41.68%
Median
20.43%
Q1
0.00%
Min
0.00%
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Southwest Airlines (LUV) vs. Union Pacific (UNP): A comparison of their payout ratio against the Transportation industry group benchmark.

Dividend Metrics

Dividend metrics for Southwest Airlines (LUV) and Union Pacific (UNP)
MetricLUVUNP
Dividend Yield (TTM)1.62%1.87%
Dividend Payout Ratio (TTM)35.12%43.37%

Valuation

P/E Ratio (TTM)

Both Southwest Airlines (LUV) at 21.68 and Union Pacific (UNP) at 22.63 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

LUV

Transportation industry group

21.68

Max
46.76
Q3
30.87
LUV
21.68
Median
20.58
Q1
10.44
Min
0.00

UNP

Transportation industry group

22.63

Max
46.76
Q3
30.87
UNP
22.63
Median
20.58
Q1
10.44
Min
0.00
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Southwest Airlines (LUV) vs. Union Pacific (UNP): A comparison of their P/E ratio against the Transportation industry group benchmark.

P/S Ratio (TTM)

Southwest Airlines (LUV) at 0.69 prices around its industry’s typical P/S ratio, while Union Pacific (UNP) at 6.54 clears its benchmark range — UNP looks notably rich on sales.

LUV

Transportation industry group

0.69

Max
4.35
Q3
2.07
Median
0.93
LUV
0.69
Q1
0.53
Min
0.04

UNP

Transportation industry group

6.54

UNP
6.54
Max
4.35
Q3
2.07
Median
0.93
Q1
0.53
Min
0.04
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Southwest Airlines (LUV) vs. Union Pacific (UNP): A comparison of their P/S ratio against the Transportation industry group benchmark.

P/B Ratio (MRQ)

Southwest Airlines (LUV) at 2.97 sits near its industry’s typical P/B ratio, while Union Pacific (UNP) at 7.83 prices above its benchmark range — UNP looks rich relative to book.

LUV

Transportation industry group

2.97

Max
6.29
Q3
3.39
LUV
2.97
Median
1.90
Q1
1.03
Min
-2.07

UNP

Transportation industry group

7.83

UNP
7.83
Max
6.29
Q3
3.39
Median
1.90
Q1
1.03
Min
-2.07
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Southwest Airlines (LUV) vs. Union Pacific (UNP): A comparison of their P/B ratio against the Transportation industry group benchmark.

Valuation Metrics

Valuation metrics for Southwest Airlines (LUV) and Union Pacific (UNP)
MetricLUVUNP
P/E Ratio (TTM)21.6822.63
P/S Ratio (TTM)0.696.54
P/B Ratio (MRQ)2.977.83
Free Cash Flow Yield (TTM)-2.82%2.94%