Southwest Airlines Co. (LUV) vs United Airlines Holdings Inc (UAL)

Southwest Airlines Co. and United Airlines Holdings Inc are both Airlines companies. United Airlines Holdings Inc is the larger, with a market value of $35.9B against $21.8B — 1.6× the size. United Airlines Holdings Inc trades at the lower P/E: 10.1× against 21.1×. Southwest Airlines Co. grew revenue faster over the last twelve months: 14.5% against 12.3%. United Airlines Holdings Inc has the higher net margin (5.46% vs 3.34%) and the higher return on invested capital (10.4% vs 9.02%). Across the 21 metrics below, United Airlines Holdings Inc leads on 17 and Southwest Airlines Co. on 4.

Valuation

Metric LUV UAL Airlines median
P/E 21.05 10.14 9.74
P/S 0.69 0.55 0.62
P/B 2.96 2.03 2.03
Price to free cash flow 122.72 29.87 18.01
EV/EBITDA 8.12 9.70 8.55
EV/Sales 0.76 0.73 0.92
Earnings yield 4.75% 9.87% 3.19%
Free cash flow yield 0.81% 3.35% 3.20%

Profitability

Metric LUV UAL Airlines median
Gross margin 22.94% 66.07% 51.70%
Operating margin 4.39% 7.51% 6.13%
Net margin 3.34% 5.46% 1.73%
Free cash flow margin 0.56% 1.84% 3.29%
Return on equity 13.96% 22.31% 14.11%
Return on assets 3.58% 4.43% 1.28%
Return on invested capital 9.02% 10.43% 4.91%

Growth

Metric LUV UAL Airlines median
Revenue growth (TTM) 14.50% 12.30% 12.32%
EPS growth (last fiscal year) 3.95% 7.94% 9.88%
Revenue growth, 5-year CAGR 25.41% 30.93% 25.83%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LUV UAL Airlines median
Debt to equity 0.80 1.49 0.76
Current ratio 0.47 0.75 0.62
Net debt to EBITDA 0.84 1.65 1.42

Dividend

Metric LUV UAL Airlines median
Dividend yield 1.62% — 1.28%
Payout ratio 0.35 — 0.20

Size

Metric LUV UAL Airlines median
Market cap 21.76b 35.90b 2.23b

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