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 $48.1B against $31.1B — 1.5× the size. L3Harris Technologies Inc trades at the lower P/E: 23.8× against 155×. Axon Enterprise, Inc grew revenue faster over the last twelve months: 34.6% against 7.33%. L3Harris Technologies Inc has the higher net margin (8.62% vs 6.19%) and the higher return on invested capital (5.69% 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 155.46 23.79 28.48
P/S 9.65 2.07 2.95
P/B 8.45 2.38 2.68
Price to free cash flow 235.05 13.20 31.70
EV/EBITDA 241.11 14.77 16.85
EV/Sales 9.97 2.41 2.74
Earnings yield 0.64% 4.20% 0.89%
Free cash flow yield 0.43% 7.58% 0.00%

Profitability

Metric AXON LHX Aerospace & Defense median
Gross margin 59.41% 25.55% 26.41%
Operating margin 0.74% 11.01% 3.69%
Net margin 6.19% 8.62% 2.74%
Free cash flow margin 4.14% 15.65% 0.00%
Return on equity 6.22% 10.11% 4.44%
Return on assets 2.91% 4.74% 1.90%
Return on invested capital 0.32% 5.69% 0.26%

Growth

Metric AXON LHX Aerospace & Defense median
Revenue growth (TTM) 34.60% 7.33% 18.03%
EPS growth (last fiscal year) (68.54%) 8.39% 24.80%
Revenue growth, 5-year CAGR 32.48% 3.74% 9.73%
Net income growth, 5-year CAGR 0.00% 7.49% 0.00%

Health

Metric AXON LHX Aerospace & Defense median
Debt to equity 0.47 0.54 0.20
Current ratio 2.15 1.20 2.85
Net debt to EBITDA (0.17) 2.68 1.29

Dividend

Metric AXON LHX Aerospace & Defense median
Dividend yield — 1.91% 0.91%
Payout ratio — 0.46 0.30

Size

Metric AXON LHX Aerospace & Defense median
Market cap 31.08b 48.06b 1.78b

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