AeroVironment, Inc. (AVAV) vs Huntington Ingalls Industries, Inc. (HII)

AeroVironment, Inc. and Huntington Ingalls Industries, Inc. are both Aerospace & Defense companies. Huntington Ingalls Industries, Inc. is the larger, with a market value of $10.5B against $8.1B — 1.3× the size. AeroVironment, Inc. has negative trailing earnings, so its P/E is not meaningful; Huntington Ingalls Industries, Inc. trades at 15.7×. AeroVironment, Inc. grew revenue faster over the last twelve months: 84.4% against 14.0%. Huntington Ingalls Industries, Inc. has the higher net margin (5.01% vs −10.1%) and the higher return on invested capital (5.45% vs −3.47%). Both pay a dividend; AeroVironment, Inc. yields more (5.70% vs 1.97%). Across the 21 metrics below, Huntington Ingalls Industries, Inc. leads on 11 and AeroVironment, Inc. on 10.

Valuation

Metric AVAV HII Aerospace & Defense median
P/E n/m 15.72 33.00
P/S 3.78 0.79 3.63
P/B 1.72 1.96 3.24
Price to free cash flow n/m n/m 34.01
EV/EBITDA 34.74 12.25 18.69
EV/Sales 3.86 1.00 3.94
Earnings yield (2.68%) 6.36% 1.31%
Free cash flow yield (0.61%) (0.82%) 0.00%

Profitability

Metric AVAV HII Aerospace & Defense median
Gross margin 26.47% 12.40% 25.48%
Operating margin (12.61%) 5.68% 4.54%
Net margin (10.13%) 5.01% 2.22%
Free cash flow margin (2.24%) (0.64%) 0.00%
Return on equity (4.60%) 12.97% 6.43%
Return on assets (3.57%) 5.33% 2.70%
Return on invested capital (3.47%) 5.45% 1.56%

Growth

Metric AVAV HII Aerospace & Defense median
Revenue growth (TTM) 84.44% 13.97% 18.43%
EPS growth (last fiscal year) (448.39%) 10.24% —
Revenue growth, 5-year CAGR 38.00% 5.93% 9.62%
Net income growth, 5-year CAGR 0.00% (2.76%) 0.00%

Health

Metric AVAV HII Aerospace & Defense median
Debt to equity 0.17 0.51 0.24
Current ratio 4.26 1.23 2.72
Net debt to EBITDA 0.47 1.87 1.12

Dividend

Metric AVAV HII Aerospace & Defense median
Dividend yield 5.70% 1.97% 1.04%
Payout ratio 0.00 0.38 0.00

Size

Metric AVAV HII Aerospace & Defense median
Market cap 8.08b 10.50b 2.52b

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