The Boeing Company (BA) vs L3Harris Technologies Inc (LHX)

The Boeing Company and L3Harris Technologies Inc are both Aerospace & Defense companies. The Boeing Company is the larger, with a market value of $136.8B against $51.9B — 2.6× the size. L3Harris Technologies Inc trades at the lower P/E: 27.9× against 64.2×. The Boeing Company grew revenue faster over the last twelve months: 24.8% against 7.29%. L3Harris Technologies Inc has the higher net margin (8.11% vs 2.22%) and the lower return on invested capital (5.12% vs 8.99%). Across the 21 metrics below, L3Harris Technologies Inc leads on 14 and The Boeing Company on 7.

Valuation

Metric BA LHX Aerospace & Defense median
P/E 64.20 27.92 32.30
P/S 1.44 2.26 3.38
P/B 22.18 2.60 2.87
Price to free cash flow n/m 18.45 31.68
EV/EBITDA 23.75 16.65 18.91
EV/Sales 1.72 2.67 3.33
Earnings yield 1.56% 3.58% 0.95%
Free cash flow yield (0.10%) 5.42% (0.02%)

Profitability

Metric BA LHX Aerospace & Defense median
Gross margin 4.68% 25.48% 25.48%
Operating margin 4.89% 10.49% 2.45%
Net margin 2.22% 8.11% 1.96%
Free cash flow margin (0.14%) 12.24% 0.00%
Return on equity 148.84% 9.50% 4.20%
Return on assets 1.30% 4.42% 1.29%
Return on invested capital 8.99% 5.12% 0.25%

Growth

Metric BA LHX Aerospace & Defense median
Revenue growth (TTM) 24.78% 7.29% 18.08%
EPS growth (last fiscal year) 113.51% 8.39% 24.80%
Revenue growth, 5-year CAGR 9.00% 3.74% 9.73%
Net income growth, 5-year CAGR 0.00% 7.49% 0.00%

Health

Metric BA LHX Aerospace & Defense median
Debt to equity 7.51 0.55 0.20
Current ratio 1.14 1.18 2.85
Net debt to EBITDA 3.96 2.68 1.32

Dividend

Metric BA LHX Aerospace & Defense median
Dividend yield — 1.78% 1.00%
Payout ratio — 0.50 0.32

Size

Metric BA LHX Aerospace & Defense median
Market cap 136.82b 51.85b 2.17b

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