LUV vs. RTX
LUV (Southwest Airlines Co.) and RTX (RTX Corporation) are both stocks. Both are in the Industrials sector — LUV in Airlines, RTX in Aerospace & Defense. Over the past 10 years, LUV returned 2.29%/yr vs 15.98%/yr for RTX. At a 0.33 correlation, their price movements are largely independent.
Performance
LUV vs. RTX - Performance Comparison
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Returns By Period
In the year-to-date period, LUV achieves a 16.95% return, which is significantly higher than RTX's 7.89% return. Over the past 10 years, LUV has underperformed RTX with an annualized return of 2.29%, while RTX has yielded a comparatively higher 15.98% annualized return.
LUV
- 1D
- -1.05%
- 1M
- 5.39%
- 6M
- 10.23%
- YTD
- 16.95%
- 1Y
- 31.48%
- 3Y*
- 12.04%
- 5Y*
- -0.01%
- 10Y*
- 2.29%
RTX
- 1D
- 0.23%
- 1M
- 7.01%
- 6M
- 2.07%
- YTD
- 7.89%
- 1Y
- 35.85%
- 3Y*
- 29.58%
- 5Y*
- 20.89%
- 10Y*
- 15.98%
LUV vs. RTX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LUV Southwest Airlines Co. | 16.95% | 25.62% | 19.11% | -11.82% | -21.41% | -8.09% | -13.32% | 17.72% | -28.21% | 32.40% |
RTX RTX Corporation | 7.89% | 61.44% | 40.76% | -14.44% | 20.01% | 23.27% | -7.70% | 43.82% | -14.66% | 19.13% |
Correlation
The correlation between LUV and RTX is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.21 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.19 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.30 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.39 |
Correlation (All Time) Calculated using the full available price history since Jan 2, 1980 | 0.33 |
The correlation between LUV and RTX shifts across timeframes, from 0.19 (3 years) to 0.39 (10 years), reflecting how their relationship changes across market environments.
Fundamentals
LUV:
$23.42B
RTX:
$264.47B
LUV:
$1.58
RTX:
$5.33
LUV:
30.30
RTX:
36.85
LUV:
0.86
RTX:
2.96
LUV:
3.51
RTX:
4.04
LUV:
$28.88B
RTX:
$90.37B
LUV:
$6.36B
RTX:
$18.27B
LUV:
$2.74B
RTX:
$13.81B
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Return for Risk
LUV vs. RTX — Risk / Return Rank
LUV
RTX
LUV vs. RTX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Southwest Airlines Co. (LUV) and RTX Corporation (RTX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| LUV | RTX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.74 | ||
| Sortino ratioReturn per unit of downside risk | -0.80 | ||
| Omega ratioGain probability vs. loss probability | 1.16 | 1.27 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | 0.94 | 1.86 | -0.92 |
| Martin ratioReturn relative to average drawdown | 1.86 | 4.74 | -2.88 |
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Drawdowns
LUV vs. RTX - Drawdown Comparison
The maximum LUV drawdown since its inception was -78.25%, which is greater than RTX's maximum drawdown of -55.14%. Use the drawdown chart below to compare losses from any high point for LUV and RTX.
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Drawdown Indicators
| LUV | RTX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -78.25% | -55.14% | -23.11% |
Max Drawdown (1Y)Largest decline over 1 year | -33.49% | -19.32% | -14.17% |
Max Drawdown (3Y)Largest decline over 3 years | -40.14% | -28.09% | -12.05% |
Max Drawdown (5Y)Largest decline over 5 years | -58.75% | -32.84% | -25.91% |
Max Drawdown (10Y)Largest decline over 10 years | -64.76% | -51.98% | -12.78% |
Current DrawdownCurrent decline from peak | -19.39% | -7.05% | -12.34% |
Average DrawdownAverage peak-to-trough decline | -29.11% | -13.02% | -16.09% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 16.98% | 7.58% | +9.40% |
Volatility
LUV vs. RTX - Volatility Comparison
Southwest Airlines Co. (LUV) has a higher volatility of 10.63% compared to RTX Corporation (RTX) at 8.89%. This indicates that LUV's price experiences larger fluctuations and is considered to be riskier than RTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LUV | RTX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.63% | 8.89% | +1.74% |
Volatility (6M)Calculated over the trailing 6-month period | 35.56% | 19.30% | +16.26% |
Volatility (1Y)Calculated over the trailing 1-year period | 44.78% | 24.98% | +19.80% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 38.51% | 24.13% | +14.38% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 37.68% | 27.84% | +9.84% |
Dividends
LUV vs. RTX - Dividend Comparison
LUV's dividend yield for the trailing twelve months is around 1.50%, more than RTX's 1.41% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LUV Southwest Airlines Co. | 1.50% | 1.74% | 2.14% | 3.12% | 0.00% | 0.00% | 0.39% | 1.30% | 1.30% | 0.73% | 0.75% | 0.66% |
RTX RTX Corporation | 1.41% | 1.46% | 2.14% | 2.76% | 2.14% | 2.33% | 21.21% | 1.96% | 2.66% | 2.13% | 2.39% | 2.66% |
Financials
LUV vs. RTX - Financials Comparison
This section allows you to compare key financial metrics between Southwest Airlines Co. and RTX Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
LUV vs. RTX - Profitability Comparison
LUV - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, Southwest Airlines Co. reported a gross profit of 2.34B and revenue of 7.25B. Therefore, the gross margin over that period was 32.2%.
RTX - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, RTX Corporation reported a gross profit of 4.59B and revenue of 22.08B. Therefore, the gross margin over that period was 20.8%.
LUV - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, Southwest Airlines Co. reported an operating income of 330.00M and revenue of 7.25B, resulting in an operating margin of 4.6%.
RTX - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, RTX Corporation reported an operating income of 2.56B and revenue of 22.08B, resulting in an operating margin of 11.6%.
LUV - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, Southwest Airlines Co. reported a net income of 227.00M and revenue of 7.25B, resulting in a net margin of 3.1%.
RTX - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, RTX Corporation reported a net income of 2.06B and revenue of 22.08B, resulting in a net margin of 9.3%.
Frequently Asked Questions
LUV and RTX have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LUV has higher volatility (10.63%) compared to RTX (8.89%). In terms of maximum drawdown, LUV dropped -78.25% vs RTX's -55.14%.
RTX currently has the higher Sharpe Ratio (1.44 vs 0.71), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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