AeroVironment, Inc. (AVAV) vs Hexcel Corporation (HXL)

AeroVironment, Inc. and Hexcel Corporation are both Aerospace & Defense companies. Hexcel Corporation is the larger, with a market value of $6.1B against $5.2B — 1.2× the size. AeroVironment, Inc. has negative trailing earnings, so its P/E is not meaningful; Hexcel Corporation trades at 36.0×. AeroVironment, Inc. grew revenue faster over the last twelve months: 84.4% against 7.57%. Hexcel Corporation has the higher net margin (8.50% vs −10.1%) and the higher return on invested capital (7.04% vs −3.47%). Across the 20 metrics below, Hexcel Corporation leads on 11 and AeroVironment, Inc. on 9.

Valuation

Metric AVAV HXL Aerospace & Defense median
P/E n/m 35.97 28.48
P/S 2.55 3.04 2.95
P/B 1.16 4.63 2.68
Price to free cash flow n/m 29.24 31.70
EV/EBITDA 23.69 18.97 16.85
EV/Sales 2.63 3.47 2.74
Earnings yield (3.97%) 2.78% 0.89%
Free cash flow yield (0.90%) 3.42% 0.00%

Profitability

Metric AVAV HXL Aerospace & Defense median
Gross margin 26.47% 25.23% 26.41%
Operating margin (12.61%) 12.21% 3.69%
Net margin (10.13%) 8.50% 2.74%
Free cash flow margin (2.24%) 10.39% 0.00%
Return on equity (4.60%) 11.86% 4.44%
Return on assets (3.57%) 6.25% 1.90%
Return on invested capital (3.47%) 7.04% 0.26%

Growth

Metric AVAV HXL Aerospace & Defense median
Revenue growth (TTM) 84.44% 7.57% 18.03%
EPS growth (last fiscal year) (448.39%) (13.84%) 24.80%
Revenue growth, 5-year CAGR 38.00% 4.74% 9.73%
Net income growth, 5-year CAGR 0.00% 28.11% 0.00%

Health

Metric AVAV HXL Aerospace & Defense median
Debt to equity 0.17 0.71 0.20
Current ratio 4.26 2.57 2.85
Net debt to EBITDA 0.47 3.15 1.29

Dividend

Metric AVAV HXL Aerospace & Defense median
Dividend yield — 0.89% 0.91%
Payout ratio — 0.32 0.30

Size

Metric AVAV HXL Aerospace & Defense median
Market cap 5.19b 6.10b 1.78b

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