LUV vs. UPS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at LUV and UPS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | LUV | UPS |
|---|---|---|
| Company Name | Southwest Airlines Co. | United Parcel Service, Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Passenger Airlines | Air Freight & Logistics |
| Market Capitalization | 17.43 billion USD | 74.47 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | January 2, 1980 | November 10, 1999 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of LUV and UPS 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 | UPS |
|---|---|---|
| 5-Day Price Return | 6.82% | 1.98% |
| 13-Week Price Return | 1.62% | -9.93% |
| 26-Week Price Return | 11.34% | -24.47% |
| 52-Week Price Return | 17.70% | -32.03% |
| Month-to-Date Return | 7.31% | 1.97% |
| Year-to-Date Return | -1.28% | -30.33% |
| 10-Day Avg. Volume | 6.69M | 7.84M |
| 3-Month Avg. Volume | 11.46M | 6.47M |
| 3-Month Volatility | 41.76% | 31.07% |
| Beta | 1.23 | 1.10 |
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.
UPS
35.27%
Air Freight & Logistics Industry
- Max
- 35.27%
- Q3
- 18.47%
- Median
- 11.35%
- Q1
- 7.21%
- Min
- 2.53%
In the upper quartile for the Air Freight & Logistics industry, UPS’s Return on Equity of 35.27% 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.
UPS
6.34%
Air Freight & Logistics Industry
- Max
- 10.27%
- Q3
- 6.18%
- Median
- 3.96%
- Q1
- 2.32%
- Min
- 0.61%
A Net Profit Margin of 6.34% places UPS in the upper quartile for the Air Freight & Logistics industry, signifying strong profitability and more effective cost management than most of its peers.
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.
UPS
9.30%
Air Freight & Logistics Industry
- Max
- 17.40%
- Q3
- 8.87%
- Median
- 5.89%
- Q1
- 3.03%
- Min
- 0.62%
An Operating Profit Margin of 9.30% places UPS in the upper quartile for the Air Freight & Logistics industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | LUV | UPS |
|---|---|---|
| Return on Equity (TTM) | 4.11% | 35.27% |
| Return on Assets (TTM) | 1.20% | 8.25% |
| Net Profit Margin (TTM) | 1.43% | 6.34% |
| Operating Profit Margin (TTM) | 1.15% | 9.30% |
| Gross Profit Margin (TTM) | 73.31% | 81.60% |
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.
UPS
1.32
Air Freight & Logistics Industry
- Max
- 1.83
- Q3
- 1.47
- Median
- 1.29
- Q1
- 1.05
- Min
- 0.62
UPS’s Current Ratio of 1.32 aligns with the median group of the Air Freight & Logistics 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.
UPS
1.57
Air Freight & Logistics Industry
- Max
- 1.57
- Q3
- 1.06
- Median
- 0.72
- Q1
- 0.30
- Min
- 0.00
UPS’s leverage is in the upper quartile of the Air Freight & Logistics industry, with a Debt-to-Equity Ratio of 1.57. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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.
UPS
9.59
Air Freight & Logistics Industry
- Max
- 49.07
- Q3
- 23.59
- Median
- 8.56
- Q1
- 5.97
- Min
- -0.60
UPS’s Interest Coverage Ratio of 9.59 is positioned comfortably within the norm for the Air Freight & Logistics industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | LUV | UPS |
|---|---|---|
| Current Ratio (MRQ) | 0.56 | 1.32 |
| Quick Ratio (MRQ) | 0.45 | 1.32 |
| Debt-to-Equity Ratio (MRQ) | 0.51 | 1.57 |
| Interest Coverage Ratio (TTM) | 9.27 | 9.59 |
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.
UPS
7.29%
Air Freight & Logistics Industry
- Max
- 6.43%
- Q3
- 3.10%
- Median
- 2.40%
- Q1
- 0.46%
- Min
- 0.00%
UPS’s Dividend Yield of 7.29% is exceptionally high, placing it well above the typical range for the Air Freight & Logistics industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
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.
UPS
94.15%
Air Freight & Logistics Industry
- Max
- 160.95%
- Q3
- 92.80%
- Median
- 54.10%
- Q1
- 0.19%
- Min
- 0.00%
UPS’s Dividend Payout Ratio of 94.15% is in the upper quartile for the Air Freight & Logistics 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 | UPS |
|---|---|---|
| Dividend Yield (TTM) | 2.58% | 7.29% |
| Dividend Payout Ratio (TTM) | 59.15% | 94.15% |
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.
UPS
12.92
Air Freight & Logistics Industry
- Max
- 34.55
- Q3
- 23.34
- Median
- 16.33
- Q1
- 13.38
- Min
- 6.36
In the lower quartile for the Air Freight & Logistics industry, UPS’s P/E Ratio of 12.92 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
UPS
0.82
Air Freight & Logistics Industry
- Max
- 2.13
- Q3
- 1.16
- Median
- 0.59
- Q1
- 0.36
- Min
- 0.18
UPS’s P/S Ratio of 0.82 aligns with the market consensus for the Air Freight & Logistics industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
UPS
5.43
Air Freight & Logistics Industry
- Max
- 3.13
- Q3
- 2.81
- Median
- 1.82
- Q1
- 1.20
- Min
- 0.74
At 5.43, UPS’s P/B Ratio is at an extreme premium to the Air Freight & Logistics 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.
Valuation at a Glance
| Symbol | LUV | UPS |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 42.24 | 12.92 |
| Price-to-Sales Ratio (TTM) | 0.60 | 0.82 |
| Price-to-Book Ratio (MRQ) | 2.31 | 5.43 |
| Price-to-Free Cash Flow Ratio (TTM) | 44.16 | 13.77 |