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LUV vs. UPS: Southwest Airlines vs. United Parcel Service Stock Comparison

How do Southwest Airlines (LUV) and United Parcel Service (UPS) 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 United Parcel Service (UPS) both fall under the Transportation industry group, but LUV is classified in Passenger Airlines while UPS is classified in Air Freight & Logistics.

Company profile comparison for Southwest Airlines (LUV) and United Parcel Service (UPS)
Profile ItemLUVUPS
NameSouthwest Airlines Co.United Parcel Service, Inc. Class B Common Stock
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupTransportationTransportation
GICS IndustryPassenger AirlinesAir Freight & Logistics
GICS Sub-IndustryPassenger AirlinesAir Freight & Logistics
Market Capitalization21.76 billion USD92.21 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1980November 10, 1999
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

LUV
UPS
GSPC
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Southwest Airlines (LUV) vs. United Parcel Service (UPS), 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 United Parcel Service (UPS). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Southwest Airlines (LUV) and United Parcel Service (UPS). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Southwest Airlines (LUV) and United Parcel Service (UPS)
MetricLUVUPS
Total Return (1Y)44.35%23.57%
Total Return (3Y, Annualized)28.08%-1.91%
Total Return (5Y, Annualized)-0.31%-7.66%

Risk Profile

Drawdown History

LUV
UPS
GSPC
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Southwest Airlines (LUV) vs. United Parcel Service (UPS), 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 United Parcel Service (UPS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Southwest Airlines (LUV) and United Parcel Service (UPS)
MetricLUVUPS
Volatility (1Y, Annualized)44.46%29.76%
Beta (5Y)1.190.95
Max Drawdown (5Y)-55.39%-57.92%
Avg. Volume (3M)5.76M4.77M

Risk-Adjusted Performance

Risk-Return Positioning

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LUV and UPS 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 United Parcel Service (UPS)
MetricLUVUPS
Sharpe Ratio (1Y)0.900.65
Sortino Ratio (1Y)1.510.89

Profitability

ROE (TTM)

United Parcel Service (UPS) at 28.65% sits in the top ROE quartile, while Southwest Airlines (LUV) at 13.94% is closer to the peer norm — stronger capital efficiency for UPS.

LUV

Transportation industry group

13.94%

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

UPS

Transportation industry group

28.65%

Max
45.08%
UPS
28.65%
Q3
22.02%
Median
13.94%
Q1
2.89%
Min
-10.45%
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Southwest Airlines (LUV) vs. United Parcel Service (UPS): A comparison of their ROE against the Transportation industry group benchmark.

Net Margin (TTM)

Both Southwest Airlines (LUV) at 3.34% and United Parcel Service (UPS) at 4.84% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

LUV

Transportation industry group

3.34%

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

UPS

Transportation industry group

4.84%

Max
50.36%
Q3
21.18%
Median
5.58%
UPS
4.84%
Q1
1.55%
Min
-11.37%
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Southwest Airlines (LUV) vs. United Parcel Service (UPS): A comparison of their net margin against the Transportation industry group benchmark.

Operating Margin (TTM)

United Parcel Service (UPS) at 9.28% runs core operations around its industry’s norm, 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%

UPS

Transportation industry group

9.28%

Max
59.18%
Q3
29.30%
Median
11.50%
UPS
9.28%
Q1
4.62%
Min
-8.91%
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Southwest Airlines (LUV) vs. United Parcel Service (UPS): A comparison of their operating margin against the Transportation industry group benchmark.

Profitability Metrics

Profitability metrics for Southwest Airlines (LUV) and United Parcel Service (UPS)
MetricLUVUPS
ROE (TTM)13.94%28.65%
ROA (TTM)3.05%7.23%
Net Margin (TTM)3.34%4.84%
Operating Margin (TTM)4.49%9.28%
Gross Margin (TTM)22.14%22.37%

Growth

Revenue Growth

Southwest Airlines (LUV) at 2.11% is around its peer norm for revenue growth, while United Parcel Service (UPS) at -2.65% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Southwest Airlines (LUV) vs. United Parcel Service (UPS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Southwest Airlines (LUV) at 3.95% and United Parcel Service (UPS) at -2.81% 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. United Parcel Service (UPS): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Southwest Airlines (LUV) and United Parcel Service (UPS)
MetricLUVUPS
Revenue Growth (YoY)2.11%-2.65%
Revenue Growth (3Y CAGR)5.63%-4.04%
EPS Growth (YoY)3.95%-2.81%
EPS Growth (3Y CAGR)-3.16%-20.79%

Financial Strength

Current Ratio (MRQ)

United Parcel Service (UPS) at 1.24 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

UPS

Transportation industry group

1.24

Max
2.58
Q3
1.62
UPS
1.24
Median
1.16
Q1
0.78
Min
0.22
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Southwest Airlines (LUV) vs. United Parcel Service (UPS): 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 United Parcel Service (UPS) at 2.03 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

UPS

Transportation industry group

2.03

Max
2.75
UPS
2.03
Q3
1.37
Median
0.78
Q1
0.35
Min
0.00
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Southwest Airlines (LUV) vs. United Parcel Service (UPS): 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 United Parcel Service (UPS)
MetricLUVUPS
Current Ratio (MRQ)0.471.24
Debt / Equity (MRQ)0.942.03
Net Debt / EBITDA1.211.94

Dividends

Dividend Yield (TTM)

Southwest Airlines (LUV) at 1.62% pays an industry-typical yield; United Parcel Service (UPS) at 5.91% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

LUV

Transportation industry group

1.62%

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

UPS

Transportation industry group

5.91%

UPS
5.91%
Max
4.68%
Q3
1.99%
Median
0.74%
Q1
0.00%
Min
0.00%
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Southwest Airlines (LUV) vs. United Parcel Service (UPS): A comparison of their dividend yield against the Transportation industry group benchmark.

Dividend Payout Ratio (TTM)

United Parcel Service (UPS) reports payout ratio above 100% at 126.40%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Southwest Airlines (LUV) reports 35.12%, ranking against industry peers normally.

LUV

Transportation industry group

35.12%

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

UPS

Transportation industry group

126.40%

UPS
126.40%
Max
100.89%
Q3
41.68%
Median
20.43%
Q1
0.00%
Min
0.00%
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Southwest Airlines (LUV) vs. United Parcel Service (UPS): A comparison of their payout ratio against the Transportation industry group benchmark.

Dividend Metrics

Dividend metrics for Southwest Airlines (LUV) and United Parcel Service (UPS)
MetricLUVUPS
Dividend Yield (TTM)1.62%5.91%
Dividend Payout Ratio (TTM)35.12%126.40%

Valuation

P/E Ratio (TTM)

Both Southwest Airlines (LUV) at 21.68 and United Parcel Service (UPS) at 20.87 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

UPS

Transportation industry group

20.87

Max
46.76
Q3
30.87
UPS
20.87
Median
20.58
Q1
10.44
Min
0.00
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Southwest Airlines (LUV) vs. United Parcel Service (UPS): A comparison of their P/E ratio against the Transportation industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Southwest Airlines (LUV) at 0.69 and United Parcel Service (UPS) at 1.01 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

LUV

Transportation industry group

0.69

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

UPS

Transportation industry group

1.01

Max
4.35
Q3
2.07
UPS
1.01
Median
0.93
Q1
0.53
Min
0.04
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Southwest Airlines (LUV) vs. United Parcel Service (UPS): A comparison of their P/S ratio against the Transportation industry group benchmark.

P/B Ratio (MRQ)

Southwest Airlines (LUV) at 2.97 is valued about in line with its industry on P/B ratio, while United Parcel Service (UPS) at 6.15 carries an above-peer premium to book — UPS is pricier on assets.

LUV

Transportation industry group

2.97

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

UPS

Transportation industry group

6.15

Max
6.29
UPS
6.15
Q3
3.39
Median
1.90
Q1
1.03
Min
-2.07
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Southwest Airlines (LUV) vs. United Parcel Service (UPS): A comparison of their P/B ratio against the Transportation industry group benchmark.

Valuation Metrics

Valuation metrics for Southwest Airlines (LUV) and United Parcel Service (UPS)
MetricLUVUPS
P/E Ratio (TTM)21.6820.87
P/S Ratio (TTM)0.691.01
P/B Ratio (MRQ)2.976.15
Free Cash Flow Yield (TTM)-2.82%6.79%