LUV vs. UAL
LUV (Southwest Airlines Co.) and UAL (United Airlines Holdings, Inc.) are both stocks. Both operate in the Airlines industry within the Industrials sector. Over the past 10 years, LUV returned 3.64%/yr vs 10.58%/yr for UAL. Their 0.67 correlation means they have sometimes moved together and sometimes differently.
Performance
LUV vs. UAL - Performance Comparison
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Returns By Period
In the year-to-date period, LUV achieves a 9.75% return, which is significantly higher than UAL's 8.50% return. Over the past 10 years, LUV has underperformed UAL with an annualized return of 3.64%, while UAL has yielded a comparatively higher 10.58% annualized return.
LUV
- 1D
- -1.38%
- 1M
- -10.51%
- 6M
- -4.54%
- YTD
- 9.75%
- 1Y
- 53.74%
- 3Y*
- 12.81%
- 5Y*
- -0.71%
- 10Y*
- 3.64%
- ALL TIME*
- 12.70%
UAL
- 1D
- -1.80%
- 1M
- -8.99%
- 6M
- 18.58%
- YTD
- 8.50%
- 1Y
- 43.47%
- 3Y*
- 31.58%
- 5Y*
- 21.03%
- 10Y*
- 10.58%
- ALL TIME*
- 6.63%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $275.82M | $262.21M | $284.21M | |
| $484.86M | $546.58M | $611.26M |
LUV vs. UAL - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LUV Southwest Airlines Co. | 9.75% | 25.62% | 19.11% | -11.82% | -21.41% | -8.09% | -13.32% | 17.72% | -28.21% | 32.40% |
UAL United Airlines Holdings, Inc. | 8.50% | 15.16% | 135.34% | 9.44% | -13.89% | 1.23% | -50.90% | 5.21% | 24.23% | -7.52% |
Correlation
The correlation between LUV and UAL is 0.75, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.75 |
Correlation (3Y) Balances recent behavior with more history. | 0.63 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.69 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.70 |
Correlation (All Time) Calculated using the full available price history since Feb 6, 2006 | 0.67 |
The correlation between LUV and UAL shifts across timeframes, from 0.63 (3 years) to 0.75 (1 year), reflecting how their relationship changes across market environments.
Fundamentals
LUV:
$22.00B
UAL:
$39.38B
LUV:
$1.63
UAL:
$10.70
LUV:
27.51
UAL:
11.34
LUV:
0.77
UAL:
0.63
LUV:
3.16
UAL:
2.37
LUV:
$30.07B
UAL:
$62.90B
LUV:
$7.43B
UAL:
$40.92B
LUV:
$2.80B
UAL:
$8.06B
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Return for Risk
LUV vs. UAL — Risk / Return Rank
LUV
UAL
LUV vs. UAL - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Southwest Airlines Co. (LUV) and United Airlines Holdings, Inc. (UAL). 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 | UAL | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.32 | ||
| Sortino ratioReturn per unit of downside risk | +0.43 | ||
| Omega ratioGain probability vs. loss probability | 1.22 | 1.16 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 1.44 | 1.37 | +0.08 |
| Martin ratioReturn relative to average drawdown | 3.21 | 3.13 | +0.08 |
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Drawdowns
LUV vs. UAL - Drawdown Comparison
The maximum LUV drawdown since its inception was -78.25%, smaller than the maximum UAL drawdown of -93.50%. Use the drawdown chart below to compare losses from any high point for LUV and UAL.
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Drawdown Indicators
| LUV | UAL | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -78.25% | -93.50% | +15.25% |
Max Drawdown (1Y)Largest decline over 1 year | -33.49% | -27.50% | -5.99% |
Max Drawdown (3Y)Largest decline over 3 years | -33.93% | -49.19% | +15.26% |
Max Drawdown (5Y)Largest decline over 5 years | -58.75% | -49.19% | -9.56% |
Max Drawdown (10Y)Largest decline over 10 years | -64.76% | -79.40% | +14.64% |
Current DrawdownCurrent decline from peak | -24.35% | -10.86% | -13.49% |
Average DrawdownAverage peak-to-trough decline | -29.10% | -37.03% | +7.93% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 15.03% | 11.97% | +3.06% |
Volatility
LUV vs. UAL - Volatility Comparison
Southwest Airlines Co. (LUV) has a higher volatility of 10.73% compared to United Airlines Holdings, Inc. (UAL) at 10.19%. This indicates that LUV's price experiences larger fluctuations and is considered to be riskier than UAL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LUV | UAL | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.73% | 10.19% | +0.54% |
Volatility (6M)Calculated over the trailing 6-month period | 32.19% | 38.64% | -6.45% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.88% | 48.22% | -4.34% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 38.50% | 48.85% | -10.35% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 37.60% | 51.69% | -14.09% |
Dividends
LUV vs. UAL - Dividend Comparison
LUV's dividend yield for the trailing twelve months is around 1.60%, while UAL has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LUV Southwest Airlines Co. | 1.60% | 1.74% | 2.14% | 3.12% | 0.00% | 0.00% | 0.39% | 1.30% | 1.30% | 0.73% | 0.75% | 0.66% |
UAL United Airlines Holdings, Inc. | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Financials
LUV vs. UAL - Financials Comparison
This section allows you to compare key financial metrics between Southwest Airlines Co. and United Airlines Holdings, Inc.. 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. UAL - Profitability Comparison
LUV - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, Southwest Airlines Co. reported a gross profit of 4.03B and revenue of 8.43B. Therefore, the gross margin over that period was 47.8%.
UAL - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, United Airlines Holdings, Inc. reported a gross profit of 11.97B and revenue of 17.67B. Therefore, the gross margin over that period was 67.7%.
LUV - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, Southwest Airlines Co. reported an operating income of 285.00M and revenue of 8.43B, resulting in an operating margin of 3.4%.
UAL - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, United Airlines Holdings, Inc. reported an operating income of 1.10B and revenue of 17.67B, resulting in an operating margin of 6.2%.
LUV - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, Southwest Airlines Co. reported a net income of 233.00M and revenue of 8.43B, resulting in a net margin of 2.8%.
UAL - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, United Airlines Holdings, Inc. reported a net income of 805.00M and revenue of 17.67B, resulting in a net margin of 4.6%.
Frequently Asked Questions
LUV and UAL have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LUV has higher volatility (10.73%) compared to UAL (10.19%). In terms of maximum drawdown, LUV dropped -78.25% vs UAL's -93.50%.
LUV currently has the higher Sharpe Ratio (1.10 vs 0.78), 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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