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

Leonardo DRS, Inc. and Huntington Ingalls Industries, Inc. are both Aerospace & Defense companies. Leonardo DRS, Inc. and Huntington Ingalls Industries, Inc. are of similar size ($10.5B and $10.0B). Huntington Ingalls Industries, Inc. trades at the lower P/E: 15.7× against 30.4×. Huntington Ingalls Industries, Inc. grew revenue faster over the last twelve months: 14.0% against 10.5%. Leonardo DRS, Inc. has the higher net margin (8.52% vs 5.01%) and the higher return on invested capital (9.27% vs 5.45%). Across the 21 metrics below, Leonardo DRS, Inc. leads on 13 and Huntington Ingalls Industries, Inc. on 8.

Valuation

Metric DRS HII Aerospace & Defense median
P/E 30.43 15.72 33.00
P/S 2.62 0.79 3.63
P/B 3.53 1.96 3.24
Price to free cash flow 27.21 n/m 34.01
EV/EBITDA 19.76 12.25 18.69
EV/Sales 2.59 1.00 3.94
Earnings yield 3.29% 6.36% 1.31%
Free cash flow yield 3.68% (0.82%) 0.00%

Profitability

Metric DRS HII Aerospace & Defense median
Gross margin 24.87% 12.40% 25.48%
Operating margin 10.53% 5.68% 4.54%
Net margin 8.52% 5.01% 2.22%
Free cash flow margin 9.63% (0.64%) 0.00%
Return on equity 11.92% 12.97% 6.43%
Return on assets 7.78% 5.33% 2.70%
Return on invested capital 9.27% 5.45% 1.56%

Growth

Metric DRS HII Aerospace & Defense median
Revenue growth (TTM) 10.46% 13.97% 18.43%
EPS growth (last fiscal year) 28.75% 10.24% —
Revenue growth, 5-year CAGR 116.77% 5.93% 9.62%
Net income growth, 5-year CAGR 118.05% (2.76%) 0.00%

Health

Metric DRS HII Aerospace & Defense median
Debt to equity 0.05 0.51 0.24
Current ratio 1.92 1.23 2.72
Net debt to EBITDA (0.68) 1.87 1.12

Dividend

Metric DRS HII Aerospace & Defense median
Dividend yield — 1.97% 1.04%
Payout ratio 0.00 0.38 0.00

Size

Metric DRS HII Aerospace & Defense median
Market cap 10.03b 10.50b 2.52b

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