LUV vs. ULTA

Last updated Jun 6, 2026

LUV (Southwest Airlines Co.) and ULTA (Ulta Beauty, Inc.) are both stocks. LUV operates in Airlines (Industrials), while ULTA operates in Specialty Retail (Consumer Cyclical). Over the past 10 years, LUV returned 0.82%/yr vs 6.92%/yr for ULTA. At a 0.34 correlation, their price movements are largely independent.

Performance

LUV vs. ULTA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Southwest Airlines Co. (LUV) and Ulta Beauty, Inc. (ULTA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LUV achieves a 0.94% return, which is significantly higher than ULTA's -22.80% return. Over the past 10 years, LUV has underperformed ULTA with an annualized return of 0.82%, while ULTA has yielded a comparatively higher 6.92% annualized return.

LUV

• 1D: 0.56%
• 1M: 0.10%
• YTD: 0.94%
• 6M: 10.70%
• 1Y: 30.56%
• 3Y*: 13.45%
• 5Y*: -5.20%
• 10Y*: 0.82%

ULTA

• 1D: 0.98%
• 1M: -12.71%
• YTD: -22.80%
• 6M: -22.35%
• 1Y: 0.01%
• 3Y*: 3.81%
• 5Y*: 7.42%
• 10Y*: 6.92%

*Multi-year figures are annualized to reflect compound growth (CAGR)

LUV vs. ULTA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LUV Southwest Airlines Co.	0.94%	25.62%	19.11%	-11.82%	-21.41%	-8.09%	-13.32%	17.72%	-28.21%	32.40%
ULTA Ulta Beauty, Inc.	-22.80%	39.11%	-11.24%	4.46%	13.76%	43.59%	13.44%	3.39%	9.47%	-12.27%

Correlation

The correlation between LUV and ULTA is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.32
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (10Y) Calculated over the trailing 10-year period	0.35
Correlation (All Time) Calculated using the full available price history since Oct 26, 2007	0.34

Fundamentals

Market Cap LUV : $20.89B ULTA : $20.53B
EPS LUV : $1.56 ULTA : $26.57
PE Ratio LUV : 26.58 ULTA : 17.58
PS Ratio LUV : 0.75 ULTA : 1.64
PB Ratio LUV : 3.04 ULTA : 7.96
Total Revenue (TTM) LUV : $28.88B ULTA : $12.71B
Gross Profit (TTM) LUV : $6.36B ULTA : $5.00B
EBITDA (TTM) LUV : $2.74B ULTA : $1.81B

Return for Risk

LUV vs. ULTA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LUV

LUV Risk / Return Rank: 61
LUV Sharpe Ratio Rank: 64
LUV Sortino Ratio Rank: 62
LUV Omega Ratio Rank: 60
LUV Calmar Ratio Rank: 61
LUV Martin Ratio Rank: 60

ULTA

ULTA Risk / Return Rank: 39
ULTA Sharpe Ratio Rank: 42
ULTA Sortino Ratio Rank: 36
ULTA Omega Ratio Rank: 36
ULTA Calmar Ratio Rank: 42
ULTA Martin Ratio Rank: 42

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LUV vs. ULTA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Southwest Airlines Co. (LUV) and Ulta Beauty, Inc. (ULTA). 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.

	LUV	ULTA	Difference
Sharpe ratio: Return per unit of total volatility	0.69	0.00	+0.69
Sortino ratio: Return per unit of downside risk	1.32	0.23	+1.08
Omega ratio: Gain probability vs. loss probability	1.16	1.03	+0.13
Calmar ratio: Return relative to maximum drawdown	0.92	0.00	+0.92
Martin ratio: Return relative to average drawdown	1.85	0.00	+1.85
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LUV vs. ULTA - Sharpe Ratio Comparison

The current LUV Sharpe Ratio is 0.69, which is higher than the ULTA Sharpe Ratio of 0.00. The chart below compares the historical Sharpe Ratios of LUV and ULTA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	LUV	ULTA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.69	0.00	+0.69
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.14	0.22	-0.35
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.02	0.18	-0.16
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.35	-0.02

Drawdowns

LUV vs. ULTA - Drawdown Comparison

The maximum LUV drawdown since its inception was -78.25%, smaller than the maximum ULTA drawdown of -87.89%. Use the drawdown chart below to compare losses from any high point for LUV and ULTA.

Drawdown Indicators

	LUV	ULTA	Difference
Max Drawdown Largest peak-to-trough decline	-78.25%	-87.89%	+9.64%
Max Drawdown (1Y) Largest decline over 1 year	-33.49%	-34.56%	+1.07%
Max Drawdown (3Y) Largest decline over 3 years	-42.93%	-44.56%	+1.63%
Max Drawdown (5Y) Largest decline over 5 years	-61.44%	-44.56%	-16.88%
Max Drawdown (10Y) Largest decline over 10 years	-64.76%	-64.92%	+0.16%
Current Drawdown Current decline from peak	-30.42%	-33.92%	+3.50%
Average Drawdown Average peak-to-trough decline	-29.13%	-20.80%	-8.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.58%	13.33%	+3.25%

Volatility

LUV vs. ULTA - Volatility Comparison

Southwest Airlines Co. (LUV) has a higher volatility of 10.62% compared to Ulta Beauty, Inc. (ULTA) at 9.12%. This indicates that LUV's price experiences larger fluctuations and is considered to be riskier than ULTA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LUV	ULTA	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.62%	9.12%	+1.50%
Volatility (6M) Calculated over the trailing 6-month period	34.42%	27.72%	+6.70%
Volatility (1Y) Calculated over the trailing 1-year period	44.33%	33.17%	+11.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	38.18%	34.27%	+3.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.63%	38.30%	-0.67%

Dividends

LUV vs. ULTA - Dividend Comparison

LUV's dividend yield for the trailing twelve months is around 1.73%, while ULTA has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LUV Southwest Airlines Co.	1.73%	1.74%	2.14%	3.12%	0.00%	0.00%	0.39%	1.30%	1.30%	0.73%	0.75%	0.66%
ULTA Ulta Beauty, 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. ULTA - Profitability Comparison

The chart below illustrates the profitability comparison between Southwest Airlines Co. and Ulta Beauty, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

LUV - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 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%.

ULTA - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Ulta Beauty, Inc. reported a gross profit of 1.27B and revenue of 3.16B. Therefore, the gross margin over that period was 40.1%.

LUV - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Southwest Airlines Co. reported an operating income of 330.00M and revenue of 7.25B, resulting in an operating margin of 4.6%.

ULTA - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Ulta Beauty, Inc. reported an operating income of 448.26M and revenue of 3.16B, resulting in an operating margin of 14.2%.

LUV - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Southwest Airlines Co. reported a net income of 227.00M and revenue of 7.25B, resulting in a net margin of 3.1%.

ULTA - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Ulta Beauty, Inc. reported a net income of 340.47M and revenue of 3.16B, resulting in a net margin of 10.8%.

Frequently Asked Questions

Can I hold both LUV and ULTA in my portfolio?

LUV and ULTA have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LUV or ULTA?

LUV has higher volatility (10.62%) compared to ULTA (9.12%). In terms of maximum drawdown, LUV dropped -78.25% vs ULTA's -87.89%.

Which has better risk-adjusted returns?

LUV currently has the higher Sharpe Ratio (0.69 vs 0.00), 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.