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 $10.5B against $8.8B — 1.2× the size. Leonardo DRS, Inc. trades at the lower P/E: 24.0× against 28.3×. BWX Technologies, Inc. grew revenue faster over the last twelve months: 17.7% against 8.85%. BWX Technologies, Inc. has the higher net margin (10.4% vs 9.40%) and the higher return on invested capital (9.69% vs 9.50%). 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 28.28 23.95 28.48
P/S 2.95 2.27 2.95
P/B 7.48 3.05 2.68
Price to free cash flow 28.57 25.58 31.70
EV/EBITDA 18.33 16.68 16.85
EV/Sales 3.35 2.24 2.74
Earnings yield 3.54% 4.17% 0.89%
Free cash flow yield 3.50% 3.91% 0.00%

Profitability

Metric BWXT DRS Aerospace & Defense median
Gross margin 22.61% 25.25% 26.41%
Operating margin 14.87% 10.84% 3.69%
Net margin 10.41% 9.40% 2.74%
Free cash flow margin 10.34% 8.88% 0.00%
Return on equity 28.18% 13.18% 4.44%
Return on assets 8.78% 8.47% 1.90%
Return on invested capital 9.69% 9.50% 0.26%

Growth

Metric BWXT DRS Aerospace & Defense median
Revenue growth (TTM) 17.71% 8.85% 18.03%
EPS growth (last fiscal year) 16.61% 28.75% 24.80%
Revenue growth, 5-year CAGR 8.54% 116.77% 9.73%
Net income growth, 5-year CAGR 3.37% 118.05% 0.00%

Health

Metric BWXT DRS Aerospace & Defense median
Debt to equity 1.43 0.06 0.20
Current ratio 1.88 1.88 2.85
Net debt to EBITDA 2.57 (0.68) 1.29

Dividend

Metric BWXT DRS Aerospace & Defense median
Dividend yield 0.92% — 0.91%
Payout ratio 0.26 — 0.30

Size

Metric BWXT DRS Aerospace & Defense median
Market cap 10.53b 8.80b 1.78b

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