Arxis, Inc. (ARXS) vs Heico Corporation (HEI)

Arxis, Inc. and Heico Corporation are both Aerospace & Defense companies. Heico Corporation is the larger, with a market value of $39.9B against $22.4B — 1.8× the size. Heico Corporation has the higher net margin (16.4% vs 11.6%) and the higher return on invested capital (10.6% vs 3.02%). Across the 16 metrics below, Heico Corporation leads on 11 and Arxis, Inc. on 5.

Valuation

Metric ARXS HEI Aerospace & Defense median
P/E — 55.50 31.60
P/S 11.32 9.11 3.36
P/B 4.06 9.38 2.99
Price to free cash flow 55.06 45.76 33.23
EV/EBITDA 42.35 33.81 19.00
EV/Sales 11.96 9.55 3.37
Earnings yield — 1.80% 0.90%
Free cash flow yield 1.82% 2.19% 0.00%

Profitability

Metric ARXS HEI Aerospace & Defense median
Gross margin 51.76% 40.40% 25.95%
Operating margin 16.58% 24.04% 1.21%
Net margin 11.56% 16.38% 2.11%
Free cash flow margin 20.56% 19.90% 0.00%
Return on equity 0.00% 18.35% 2.67%
Return on assets 3.09% 9.18% 1.90%
Return on invested capital 3.02% 10.62% 0.25%

Growth

Metric ARXS HEI Aerospace & Defense median
Revenue growth (TTM) — 20.69% 18.25%
EPS growth (last fiscal year) — 33.51% 24.80%
Revenue growth, 5-year CAGR — 20.21% 9.73%
Net income growth, 5-year CAGR — 17.07% 0.00%

Health

Metric ARXS HEI Aerospace & Defense median
Debt to equity 0.32 0.51 0.18
Current ratio 4.70 2.72 2.85
Net debt to EBITDA 4.76 1.61 1.29

Dividend

Metric ARXS HEI Aerospace & Defense median
Dividend yield — 0.07% 0.87%
Payout ratio — 0.04 0.30

Size

Metric ARXS HEI Aerospace & Defense median
Market cap 22.39b 39.93b 1.94b

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