BWX Technologies, Inc. (BWXT) vs Leonardo DRS, Inc. (DRS)

BWX Technologies, Inc. and Leonardo DRS, Inc. are both Aerospace & Defense companies. BWX Technologies, Inc. is the larger, with a market value of $12.8B against $10.0B — 1.3× the size. Leonardo DRS, Inc. trades at the lower P/E: 30.4× against 35.7×. BWX Technologies, Inc. grew revenue faster over the last twelve months: 22.7% against 10.5%. BWX Technologies, Inc. has the higher net margin (10.1% vs 8.52%) and the higher return on invested capital (9.71% vs 9.27%). Across the 22 metrics below, Leonardo DRS, Inc. leads on 15 and BWX Technologies, Inc. on 7.

Valuation

Metric BWXT DRS Aerospace & Defense median
P/E 35.69 30.43 33.00
P/S 3.61 2.62 3.63
P/B 9.52 3.53 3.24
Price to free cash flow 40.19 27.21 34.01
EV/EBITDA 22.40 19.76 18.69
EV/Sales 4.02 2.59 3.94
Earnings yield 2.80% 3.29% 1.31%
Free cash flow yield 2.49% 3.68% 0.00%

Profitability

Metric BWXT DRS Aerospace & Defense median
Gross margin 22.08% 24.87% 25.48%
Operating margin 14.57% 10.53% 4.54%
Net margin 10.11% 8.52% 2.22%
Free cash flow margin 9.01% 9.63% 0.00%
Return on equity 28.21% 11.92% 6.43%
Return on assets 8.75% 7.78% 2.70%
Return on invested capital 9.71% 9.27% 1.56%

Growth

Metric BWXT DRS Aerospace & Defense median
Revenue growth (TTM) 22.67% 10.46% 18.43%
EPS growth (last fiscal year) 16.61% 28.75% —
Revenue growth, 5-year CAGR 8.54% 116.77% 9.62%
Net income growth, 5-year CAGR 3.37% 118.05% 0.00%

Health

Metric BWXT DRS Aerospace & Defense median
Debt to equity 1.51 0.05 0.24
Current ratio 2.40 1.92 2.72
Net debt to EBITDA 2.57 (0.68) 1.12

Dividend

Metric BWXT DRS Aerospace & Defense median
Dividend yield 1.10% — 1.04%
Payout ratio 0.37 0.00 0.00

Size

Metric BWXT DRS Aerospace & Defense median
Market cap 12.75b 10.03b 2.52b

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