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 $136.7B against $79.9B — 1.7× the size. The Boeing Company trades at the lower P/E: 17.9× against 39.3×. Howmet Aerospace Inc. grew revenue faster over the last twelve months: 22.0% against 17.5%. Howmet Aerospace Inc. has the higher net margin (21.1% vs 7.70%) and the lower return on invested capital (18.3% vs 19.2%). Across the 22 metrics below, Howmet Aerospace Inc. leads on 15 and The Boeing Company on 7.

Valuation

Metric BA HWM Aerospace & Defense median
P/E 17.89 39.32 28.48
P/S 1.44 8.24 2.95
P/B 20.90 13.92 2.68
Price to free cash flow 1,304.86 37.19 31.70
EV/EBITDA 13.49 27.42 16.85
EV/Sales 1.71 8.61 2.74
Earnings yield 5.59% 2.54% 0.89%
Free cash flow yield 0.08% 2.69% 0.00%

Profitability

Metric BA HWM Aerospace & Defense median
Gross margin 9.42% 36.63% 26.41%
Operating margin 10.26% 28.05% 3.69%
Net margin 7.70% 21.10% 2.74%
Free cash flow margin 0.12% 22.16% 0.00%
Return on equity (858.49%) 37.84% 4.44%
Return on assets 4.56% 16.79% 1.90%
Return on invested capital 19.15% 18.33% 0.26%

Growth

Metric BA HWM Aerospace & Defense median
Revenue growth (TTM) 17.53% 22.02% 18.03%
EPS growth (last fiscal year) 113.51% 32.03% 24.80%
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 7.00 0.70 0.20
Current ratio 1.13 1.86 2.85
Net debt to EBITDA 3.96 0.99 1.29

Dividend

Metric BA HWM Aerospace & Defense median
Dividend yield — 0.32% 0.91%
Payout ratio — 0.13 0.30

Size

Metric BA HWM Aerospace & Defense median
Market cap 136.70b 79.89b 1.78b

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