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 $156.4B against $91.7B — 1.7× the size. Howmet Aerospace Inc. trades at the lower P/E: 49.9× against 74.2×. 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%). Both pay a dividend; Howmet Aerospace Inc. yields more (0.29% vs 0.16%). Across the 22 metrics below, Howmet Aerospace Inc. leads on 16 and The Boeing Company on 6.

Valuation

Metric BA HWM Aerospace & Defense median
P/E 74.18 49.89 33.00
P/S 1.67 10.20 3.63
P/B 25.63 16.22 3.24
Price to free cash flow n/m 46.10 34.01
EV/EBITDA 26.85 34.48 18.69
EV/Sales 1.94 10.58 3.94
Earnings yield 1.35% 2.00% 1.31%
Free cash flow yield (0.09%) 2.17% 0.00%

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% 0.00%
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% —
Revenue growth, 5-year CAGR 9.00% 9.43% 9.62%
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 0.16% 0.29% 1.04%
Payout ratio 0.00 0.11 0.00

Size

Metric BA HWM Aerospace & Defense median
Market cap 156.38b 91.73b 2.52b

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