The Boeing Company (BA) vs Howmet Aerospace Inc. (HWM)

The Boeing Company and Howmet Aerospace Inc. are both Aerospace & Defense companies. The Boeing Company is the larger, with a market value of $149.2B against $87.6B — 1.7× the size. Howmet Aerospace Inc. trades at the lower P/E: 47.4× against 71.2×. The Boeing Company grew revenue faster over the last twelve months: 24.8% against 18.1%. Howmet Aerospace Inc. has the higher net margin (20.5% vs 2.22%) and the higher return on invested capital (16.9% vs 8.99%). Across the 21 metrics below, Howmet Aerospace Inc. leads on 15 and The Boeing Company on 6.

Valuation

Metric BA HWM Aerospace & Defense median
P/E 71.24 47.42 31.81
P/S 1.60 9.69 3.55
P/B 24.61 15.42 2.59
Price to free cash flow n/m 43.82 31.99
EV/EBITDA 25.93 32.83 18.08
EV/Sales 1.88 10.08 3.37
Earnings yield 1.40% 2.11% 1.38%
Free cash flow yield (0.09%) 2.28% 0.21%

Profitability

Metric BA HWM Aerospace & Defense median
Gross margin 4.68% 36.03% 25.48%
Operating margin 4.89% 27.37% 4.54%
Net margin 2.22% 20.51% 2.22%
Free cash flow margin (0.14%) 22.12% 1.43%
Return on equity 148.84% 34.89% 6.43%
Return on assets 1.30% 15.39% 2.70%
Return on invested capital 8.99% 16.91% 1.56%

Growth

Metric BA HWM Aerospace & Defense median
Revenue growth (TTM) 24.78% 18.08% 18.43%
EPS growth (last fiscal year) 113.51% 32.03% 24.27%
Revenue growth, 5-year CAGR 9.00% 9.43% 9.73%
Net income growth, 5-year CAGR 0.00% 42.20% 0.00%

Health

Metric BA HWM Aerospace & Defense median
Debt to equity 7.51 0.71 0.24
Current ratio 1.14 1.82 2.72
Net debt to EBITDA 3.96 0.99 1.12

Dividend

Metric BA HWM Aerospace & Defense median
Dividend yield — 0.23% 0.90%
Payout ratio — 0.11 0.32

Size

Metric BA HWM Aerospace & Defense median
Market cap 149.17b 87.62b 2.19b

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