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Southwest Airlines Co. (LUV) vs Ryanair Holdings PLC (RYAAY)

Southwest Airlines Co. and Ryanair Holdings PLC are both Airlines companies. Ryanair Holdings PLC is the larger, with a market value of $30.3B against $21.8B — 1.4× the size. Ryanair Holdings PLC trades at the lower P/E: 14.3× against 21.1×. Southwest Airlines Co. grew revenue faster over the last twelve months: 14.5% against 9.00%. Ryanair Holdings PLC has the higher net margin (11.2% vs 3.34%) and the higher return on invested capital (15.3% vs 9.02%). Only Southwest Airlines Co. pays a dividend (1.62%). Across the 22 metrics below, Ryanair Holdings PLC leads on 18 and Southwest Airlines Co. on 4.

Valuation

Metric LUV RYAAY Airlines median
P/E 21.05 14.30 9.74
P/S 0.69 1.65 0.62
P/B 2.96 2.26 2.03
Price to free cash flow 122.72 17.46 18.01
EV/EBITDA 8.12 6.93 8.55
EV/Sales 0.76 1.49 0.92
Earnings yield 4.75% 6.99% 3.19%
Free cash flow yield 0.81% 5.73% 3.20%

Profitability

Metric LUV RYAAY Airlines median
Gross margin 22.94% 51.54% 51.70%
Operating margin 4.39% 12.01% 6.13%
Net margin 3.34% 11.22% 1.73%
Free cash flow margin 0.56% 9.45% 3.29%
Return on equity 13.96% 17.26% 14.11%
Return on assets 3.58% 10.14% 1.28%
Return on invested capital 9.02% 15.34% 4.91%

Growth

Metric LUV RYAAY Airlines median
Revenue growth (TTM) 14.50% 9.00% 12.32%
EPS growth (last fiscal year) 3.95% 51.92% 9.88%
Revenue growth, 5-year CAGR 25.41% 56.66% 25.83%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LUV RYAAY Airlines median
Debt to equity 0.80 0.04 0.76
Current ratio 0.47 1.17 0.62
Net debt to EBITDA 0.84 (1.16) 1.42

Dividend

Metric LUV RYAAY Airlines median
Dividend yield 1.62% 0.00% 1.28%
Payout ratio 0.35 0.00 0.20

Size

Metric LUV RYAAY Airlines median
Market cap 21.76b 30.31b 2.23b

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