Seek Returns logo

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

Updated on

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

Company Profile

SymbolLUVWAB
Company NameSouthwest Airlines Co.Westinghouse Air Brake Technologies Corporation
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryPassenger AirlinesMachinery
Market Capitalization16.38 billion USD32.97 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 1980June 16, 1995
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolLUVWAB
5-Day Price Return1.56%0.98%
13-Week Price Return-4.33%-6.91%
26-Week Price Return4.18%-1.85%
52-Week Price Return16.65%19.80%
Month-to-Date Return0.81%0.42%
Year-to-Date Return-7.26%1.72%
10-Day Avg. Volume7.38M1.05M
3-Month Avg. Volume11.72M1.02M
3-Month Volatility40.41%20.33%
Beta1.231.11

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.

WAB

11.11%

Machinery Industry

Max
34.68%
Q3
19.06%
Median
13.13%
Q1
8.53%
Min
-4.87%

WAB’s Return on Equity of 11.11% is on par with the norm for the Machinery industry, indicating its profitability relative to shareholder equity is typical for the sector.

LUV vs. WAB: A comparison of their Return on Equity (TTM) against their respective Passenger Airlines and Machinery 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.

WAB

10.92%

Machinery Industry

Max
19.74%
Q3
11.24%
Median
8.13%
Q1
5.38%
Min
-1.11%

WAB’s Net Profit Margin of 10.92% is aligned with the median group of its peers in the Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.

LUV vs. WAB: A comparison of their Net Profit Margin (TTM) against their respective Passenger Airlines and Machinery 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.

WAB

16.22%

Machinery Industry

Max
26.63%
Q3
16.15%
Median
11.27%
Q1
7.72%
Min
-4.91%

An Operating Profit Margin of 16.22% places WAB in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolLUVWAB
Return on Equity (TTM)4.11%11.11%
Return on Assets (TTM)1.20%6.00%
Net Profit Margin (TTM)1.43%10.92%
Operating Profit Margin (TTM)1.15%16.22%
Gross Profit Margin (TTM)73.31%33.57%

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.

WAB

1.76

Machinery Industry

Max
3.83
Q3
2.32
Median
1.72
Q1
1.28
Min
0.78

WAB’s Current Ratio of 1.76 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.

LUV vs. WAB: A comparison of their Current Ratio (MRQ) against their respective Passenger Airlines and Machinery 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.

WAB

0.44

Machinery Industry

Max
1.49
Q3
0.75
Median
0.44
Q1
0.26
Min
0.00

WAB’s Debt-to-Equity Ratio of 0.44 is typical for the Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

WAB

7.65

Machinery Industry

Max
67.55
Q3
33.79
Median
13.87
Q1
7.97
Min
-1.43

In the lower quartile for the Machinery industry, WAB’s Interest Coverage Ratio of 7.65 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

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

Financial Strength at a Glance

SymbolLUVWAB
Current Ratio (MRQ)0.561.76
Quick Ratio (MRQ)0.451.05
Debt-to-Equity Ratio (MRQ)0.510.44
Interest Coverage Ratio (TTM)9.277.65

Growth

Revenue Growth

LUV vs. WAB: 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. WAB: 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.

WAB

0.47%

Machinery Industry

Max
5.32%
Q3
2.84%
Median
1.87%
Q1
1.09%
Min
0.00%

WAB’s Dividend Yield of 0.47% is in the lower quartile for the Machinery industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

LUV vs. WAB: A comparison of their Dividend Yield (TTM) against their respective Passenger Airlines and Machinery 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.

WAB

13.53%

Machinery Industry

Max
202.17%
Q3
98.65%
Median
55.54%
Q1
29.03%
Min
0.00%

WAB’s Dividend Payout Ratio of 13.53% is in the lower quartile for the Machinery industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

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

Dividend at a Glance

SymbolLUVWAB
Dividend Yield (TTM)2.58%0.47%
Dividend Payout Ratio (TTM)59.15%13.53%

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.

WAB

28.50

Machinery Industry

Max
53.66
Q3
31.29
Median
22.00
Q1
16.18
Min
7.00

WAB’s P/E Ratio of 28.50 is within the middle range for the Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

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

WAB

3.11

Machinery Industry

Max
5.04
Q3
2.72
Median
1.67
Q1
1.04
Min
0.24

WAB’s P/S Ratio of 3.11 is in the upper echelon for the Machinery industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

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

WAB

3.32

Machinery Industry

Max
7.23
Q3
3.90
Median
2.52
Q1
1.47
Min
0.49

WAB’s P/B Ratio of 3.32 is within the conventional range for the Machinery 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.

LUV vs. WAB: A comparison of their Price-to-Book Ratio (MRQ) against their respective Passenger Airlines and Machinery industry benchmarks.

Valuation at a Glance

SymbolLUVWAB
Price-to-Earnings Ratio (TTM)42.2428.50
Price-to-Sales Ratio (TTM)0.603.11
Price-to-Book Ratio (MRQ)2.313.32
Price-to-Free Cash Flow Ratio (TTM)44.1622.63