Leonardo DRS, Inc. (DRS) vs Huntington Ingalls Industries, Inc. (HII)

Leonardo DRS, Inc. and Huntington Ingalls Industries, Inc. are both Aerospace & Defense companies. Huntington Ingalls Industries, Inc. is the larger, with a market value of $11.4B against $8.8B — 1.3× the size. Huntington Ingalls Industries, Inc. trades at the lower P/E: 15.6× against 24.0×. Huntington Ingalls Industries, Inc. grew revenue faster over the last twelve months: 12.6% against 8.85%. Leonardo DRS, Inc. has the higher net margin (9.40% vs 5.42%) and the higher return on invested capital (9.50% vs 6.27%). Across the 22 metrics below, Leonardo DRS, Inc. leads on 14 and Huntington Ingalls Industries, Inc. on 8.

Valuation

Metric DRS HII Aerospace & Defense median
P/E 23.95 15.57 28.48
P/S 2.27 0.85 2.95
P/B 3.05 2.08 2.68
Price to free cash flow 25.58 35.00 31.70
EV/EBITDA 16.68 11.81 16.85
EV/Sales 2.24 1.02 2.74
Earnings yield 4.17% 6.42% 0.89%
Free cash flow yield 3.91% 2.86% 0.00%

Profitability

Metric DRS HII Aerospace & Defense median
Gross margin 25.25% 12.72% 26.41%
Operating margin 10.84% 6.27% 3.69%
Net margin 9.40% 5.42% 2.74%
Free cash flow margin 8.88% 2.42% 0.00%
Return on equity 13.18% 13.99% 4.44%
Return on assets 8.47% 5.80% 1.90%
Return on invested capital 9.50% 6.27% 0.26%

Growth

Metric DRS HII Aerospace & Defense median
Revenue growth (TTM) 8.85% 12.64% 18.03%
EPS growth (last fiscal year) 28.75% 10.24% 24.80%
Revenue growth, 5-year CAGR 116.77% 5.93% 9.73%
Net income growth, 5-year CAGR 118.05% (2.76%) 0.00%

Health

Metric DRS HII Aerospace & Defense median
Debt to equity 0.06 0.49 0.20
Current ratio 1.88 1.26 2.85
Net debt to EBITDA (0.68) 1.87 1.29

Dividend

Metric DRS HII Aerospace & Defense median
Dividend yield — 1.91% 0.91%
Payout ratio — 0.30 0.30

Size

Metric DRS HII Aerospace & Defense median
Market cap 8.80b 11.40b 1.78b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack