LATAM Airlines Group S.A. (LTM) vs Southwest Airlines Co. (LUV)

LATAM Airlines Group S.A. and Southwest Airlines Co. are both Airlines companies. Southwest Airlines Co. is the larger, with a market value of $20.5B against $14.8B — 1.4× the size. LATAM Airlines Group S.A. trades at the lower P/E: 9.6× against 25.7×. LATAM Airlines Group S.A. grew revenue faster over the last twelve months: 20.5% against 9.46%. LATAM Airlines Group S.A. has the higher net margin (9.85% vs 2.79%) and the lower return on invested capital (0.00% vs 7.04%). Across the 20 metrics below, LATAM Airlines Group S.A. leads on 16 and Southwest Airlines Co. on 4.

Valuation

Metric LTM LUV Airlines median
P/E 9.63 25.71 10.32
P/S 0.95 0.69 0.57
P/B 7.58 2.95 2.06
Price to free cash flow 6.90 n/m 13.20
EV/EBITDA 8.31 8.84 9.68
EV/Sales 1.24 0.77 0.89
Earnings yield 10.38% 3.89% 2.85%
Free cash flow yield 14.49% (0.03%) 3.17%

Profitability

Metric LTM LUV Airlines median
Gross margin 26.98% 23.23% 42.57%
Operating margin 14.96% 3.46% 4.18%
Net margin 9.85% 2.79% 1.85%
Free cash flow margin 13.73% (0.02%) 4.31%
Return on equity 108.24% 11.11% 10.75%
Return on assets 8.63% 2.85% 1.67%
Return on invested capital 0.00% 7.04% 3.19%

Growth

Metric LTM LUV Airlines median
Revenue growth (TTM) 20.52% 9.46% 9.79%
EPS growth (last fiscal year) 53.25% 3.95% —
Revenue growth, 5-year CAGR 29.45% 25.41% 25.83%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LTM LUV Airlines median
Debt to equity 0.00 0.84 0.81
Current ratio 0.67 0.49 0.60
Net debt to EBITDA (0.92) 0.84 1.42

Dividend

Metric LTM LUV Airlines median
Dividend yield — 2.28% 0.82%
Payout ratio — 0.57 0.00

Size

Metric LTM LUV Airlines median
Market cap 14.83b 20.53b 3.91b

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