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

AeroVironment, Inc. and Hexcel Corporation are both Aerospace & Defense companies. AeroVironment, Inc. and Hexcel Corporation are of similar size ($6.8B and $6.3B). AeroVironment, Inc. has negative trailing earnings, so its P/E is not meaningful; Hexcel Corporation trades at 45.1×. AeroVironment, Inc. grew revenue faster over the last twelve months: 84.4% against 5.41%. Hexcel Corporation has the higher net margin (7.76% vs −10.1%) and the higher return on invested capital (6.47% 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 45.11 31.81
P/S 3.02 3.45 3.55
P/B 1.38 5.26 2.59
Price to free cash flow n/m 26.72 31.99
EV/EBITDA 27.88 22.05 18.08
EV/Sales 3.10 3.91 3.37
Earnings yield (3.36%) 2.22% 1.38%
Free cash flow yield (0.77%) 3.74% 0.21%

Profitability

Metric AVAV HXL Aerospace & Defense median
Gross margin 26.47% 24.96% 25.48%
Operating margin (12.61%) 11.50% 4.54%
Net margin (10.13%) 7.76% 2.22%
Free cash flow margin (2.24%) 12.92% 1.43%
Return on equity (4.60%) 10.76% 6.43%
Return on assets (3.57%) 5.51% 2.70%
Return on invested capital (3.47%) 6.47% 1.56%

Growth

Metric AVAV HXL Aerospace & Defense median
Revenue growth (TTM) 84.44% 5.41% 18.43%
EPS growth (last fiscal year) (448.39%) (13.84%) 24.27%
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 0.74 0.24
Current ratio 4.26 2.43 2.72
Net debt to EBITDA 0.47 3.15 1.12

Dividend

Metric AVAV HXL Aerospace & Defense median
Dividend yield — 0.79% 0.90%
Payout ratio — 0.36 0.32

Size

Metric AVAV HXL Aerospace & Defense median
Market cap 6.26b 6.80b 2.19b

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