AAR Corp. (AIR) vs Hexcel Corporation (HXL)

AAR Corp. and Hexcel Corporation are both Aerospace & Defense companies. Hexcel Corporation is the larger, with a market value of $6.4B against $4.9B — 1.3× the size. AAR Corp. trades at the lower P/E: 23.8× against 42.9×. AAR Corp. grew revenue faster over the last twelve months: 19.0% against 5.41%. Hexcel Corporation has the higher net margin (7.76% vs 5.67%) and the lower return on invested capital (6.47% vs 6.97%). Across the 22 metrics below, AAR Corp. leads on 16 and Hexcel Corporation on 6.

Valuation

Metric AIR HXL Aerospace & Defense median
P/E 23.84 42.88 33.00
P/S 1.34 3.28 3.63
P/B 2.61 5.00 3.24
Price to free cash flow 51.00 25.40 34.01
EV/EBITDA 14.85 21.09 18.69
EV/Sales 1.59 3.74 3.94
Earnings yield 4.19% 2.33% 1.31%
Free cash flow yield 1.96% 3.94% 0.00%

Profitability

Metric AIR HXL Aerospace & Defense median
Gross margin 18.80% 24.96% 25.48%
Operating margin 8.40% 11.50% 4.54%
Net margin 5.67% 7.76% 2.22%
Free cash flow margin 2.64% 12.92% 0.00%
Return on equity 12.88% 10.76% 6.43%
Return on assets 6.05% 5.51% 2.70%
Return on invested capital 6.97% 6.47% 1.56%

Growth

Metric AIR HXL Aerospace & Defense median
Revenue growth (TTM) 18.97% 5.41% 18.43%
EPS growth (last fiscal year) 1,288.57% (13.84%) —
Revenue growth, 5-year CAGR 14.89% 4.74% 9.62%
Net income growth, 5-year CAGR 39.60% 28.11% 0.00%

Health

Metric AIR HXL Aerospace & Defense median
Debt to equity 0.52 0.74 0.24
Current ratio 2.84 2.43 2.72
Net debt to EBITDA 2.23 3.15 1.12

Dividend

Metric AIR HXL Aerospace & Defense median
Dividend yield — 0.82% 1.04%
Payout ratio 0.00 0.26 0.00

Size

Metric AIR HXL Aerospace & Defense median
Market cap 4.85b 6.40b 2.52b

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