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

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

Company Profile

SymbolLUVVRSK
Company NameSouthwest Airlines Co.Verisk Analytics, Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryPassenger AirlinesProfessional Services
Market Capitalization17.08 billion USD37.31 billion USD
ExchangeNYSENasdaqGS
Listing DateJanuary 2, 1980October 7, 2009
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolLUVVRSK
5-Day Price Return2.94%-1.45%
13-Week Price Return4.20%-15.04%
26-Week Price Return7.68%-9.73%
52-Week Price Return20.76%-1.06%
Month-to-Date Return5.14%-4.18%
Year-to-Date Return-3.27%-3.04%
10-Day Avg. Volume7.36M1.08M
3-Month Avg. Volume11.57M0.93M
3-Month Volatility41.62%21.28%
Beta1.230.88

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.

VRSK

439.17%

Professional Services Industry

Max
52.17%
Q3
30.06%
Median
22.21%
Q1
11.67%
Min
-13.44%

VRSK’s Return on Equity of 439.17% is exceptionally high, placing it well beyond the typical range for the Professional Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

LUV vs. VRSK: A comparison of their Return on Equity (TTM) against their respective Passenger Airlines and Professional Services 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.

VRSK

30.67%

Professional Services Industry

Max
26.06%
Q3
13.34%
Median
7.88%
Q1
3.50%
Min
-2.93%

VRSK’s Net Profit Margin of 30.67% is exceptionally high, placing it well beyond the typical range for the Professional Services industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

LUV vs. VRSK: A comparison of their Net Profit Margin (TTM) against their respective Passenger Airlines and Professional Services 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.

VRSK

43.94%

Professional Services Industry

Max
35.84%
Q3
19.38%
Median
12.54%
Q1
7.36%
Min
-5.21%

VRSK’s Operating Profit Margin of 43.94% is exceptionally high, placing it well above the typical range for the Professional Services industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

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

Profitability at a Glance

SymbolLUVVRSK
Return on Equity (TTM)4.11%439.17%
Return on Assets (TTM)1.20%19.55%
Net Profit Margin (TTM)1.43%30.67%
Operating Profit Margin (TTM)1.15%43.94%
Gross Profit Margin (TTM)73.31%69.39%

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.

VRSK

1.53

Professional Services Industry

Max
2.45
Q3
1.65
Median
1.26
Q1
1.10
Min
0.47

VRSK’s Current Ratio of 1.53 aligns with the median group of the Professional Services industry, indicating that its short-term liquidity is in line with its sector peers.

LUV vs. VRSK: A comparison of their Current Ratio (MRQ) against their respective Passenger Airlines and Professional Services 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.

VRSK

10.43

Professional Services Industry

Max
2.63
Q3
1.44
Median
0.91
Q1
0.49
Min
0.00

With a Debt-to-Equity Ratio of 10.43, VRSK operates with exceptionally high leverage compared to the Professional Services industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

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

VRSK

43.51

Professional Services Industry

Max
39.67
Q3
20.05
Median
11.07
Q1
5.36
Min
-2.22

With an Interest Coverage Ratio of 43.51, VRSK demonstrates a superior capacity to service its debt, placing it well above the typical range for the Professional Services industry. This stems from either robust earnings or a conservative debt load.

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

Financial Strength at a Glance

SymbolLUVVRSK
Current Ratio (MRQ)0.561.53
Quick Ratio (MRQ)0.451.44
Debt-to-Equity Ratio (MRQ)0.5110.43
Interest Coverage Ratio (TTM)9.2743.51

Growth

Revenue Growth

LUV vs. VRSK: 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. VRSK: 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.

VRSK

0.62%

Professional Services Industry

Max
5.28%
Q3
2.51%
Median
1.63%
Q1
0.62%
Min
0.00%

VRSK’s Dividend Yield of 0.62% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.

LUV vs. VRSK: A comparison of their Dividend Yield (TTM) against their respective Passenger Airlines and Professional Services 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.

VRSK

25.76%

Professional Services Industry

Max
109.23%
Q3
64.39%
Median
47.00%
Q1
20.35%
Min
0.00%

VRSK’s Dividend Payout Ratio of 25.76% is within the typical range for the Professional Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolLUVVRSK
Dividend Yield (TTM)2.58%0.62%
Dividend Payout Ratio (TTM)59.15%25.76%

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.

VRSK

41.55

Professional Services Industry

Max
49.59
Q3
36.59
Median
28.13
Q1
18.55
Min
10.07

A P/E Ratio of 41.55 places VRSK in the upper quartile for the Professional Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

LUV vs. VRSK: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Passenger Airlines and Professional Services 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.

VRSK

12.75

Professional Services Industry

Max
9.54
Q3
5.11
Median
2.10
Q1
0.75
Min
0.11

With a P/S Ratio of 12.75, VRSK trades at a valuation that eclipses even the highest in the Professional Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

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

VRSK

139.79

Professional Services Industry

Max
13.75
Q3
8.87
Median
4.35
Q1
2.43
Min
0.54

At 139.79, VRSK’s P/B Ratio is at an extreme premium to the Professional Services 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. VRSK: A comparison of their Price-to-Book Ratio (MRQ) against their respective Passenger Airlines and Professional Services industry benchmarks.

Valuation at a Glance

SymbolLUVVRSK
Price-to-Earnings Ratio (TTM)42.2441.55
Price-to-Sales Ratio (TTM)0.6012.75
Price-to-Book Ratio (MRQ)2.31139.79
Price-to-Free Cash Flow Ratio (TTM)44.1637.30