Axon Enterprise, Inc (AXON) vs L3Harris Technologies Inc (LHX)

Axon Enterprise, Inc and L3Harris Technologies Inc are both Aerospace & Defense companies. L3Harris Technologies Inc is the larger, with a market value of $44.5B against $36.2B — 1.2× the size. L3Harris Technologies Inc trades at the lower P/E: 23.9× against 173×. Axon Enterprise, Inc grew revenue faster over the last twelve months: 34.6% against 7.29%. L3Harris Technologies Inc has the higher net margin (8.11% vs 6.19%) and the higher return on invested capital (5.12% vs 0.32%). Across the 22 metrics below, L3Harris Technologies Inc leads on 16 and Axon Enterprise, Inc on 6.

Valuation

Metric AXON LHX Aerospace & Defense median
P/E 173.43 23.86 33.00
P/S 10.77 1.93 3.63
P/B 9.43 2.23 3.24
Price to free cash flow 262.21 15.77 34.01
EV/EBITDA 268.08 14.60 18.69
EV/Sales 11.09 2.34 3.94
Earnings yield 0.58% 4.19% 1.31%
Free cash flow yield 0.38% 6.34% 0.00%

Profitability

Metric AXON LHX Aerospace & Defense median
Gross margin 59.41% 25.48% 25.48%
Operating margin 0.74% 10.49% 4.54%
Net margin 6.19% 8.11% 2.22%
Free cash flow margin 4.14% 12.24% 0.00%
Return on equity 6.22% 9.50% 6.43%
Return on assets 2.91% 4.42% 2.70%
Return on invested capital 0.32% 5.12% 1.56%

Growth

Metric AXON LHX Aerospace & Defense median
Revenue growth (TTM) 34.60% 7.29% 18.43%
EPS growth (last fiscal year) (68.54%) 8.39% —
Revenue growth, 5-year CAGR 32.48% 3.74% 9.62%
Net income growth, 5-year CAGR 0.00% 7.49% 0.00%

Health

Metric AXON LHX Aerospace & Defense median
Debt to equity 0.47 0.55 0.24
Current ratio 2.15 1.18 2.72
Net debt to EBITDA (0.17) 2.68 1.12

Dividend

Metric AXON LHX Aerospace & Defense median
Dividend yield — 2.32% 1.04%
Payout ratio 0.00 1.07 0.00

Size

Metric AXON LHX Aerospace & Defense median
Market cap 36.23b 44.49b 2.52b

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