Leonardo DRS, Inc. (DRS) vs Hexcel Corporation (HXL)

Leonardo DRS, Inc. and Hexcel Corporation are both Aerospace & Defense companies. Leonardo DRS, Inc. is the larger, with a market value of $8.8B against $6.1B — 1.4× the size. Leonardo DRS, Inc. trades at the lower P/E: 24.0× against 36.0×. Leonardo DRS, Inc. grew revenue faster over the last twelve months: 8.85% against 7.57%. Leonardo DRS, Inc. has the higher net margin (9.40% vs 8.50%) and the higher return on invested capital (9.50% vs 7.04%). Across the 22 metrics below, Leonardo DRS, Inc. leads on 19 and Hexcel Corporation on 3.

Valuation

Metric DRS HXL Aerospace & Defense median
P/E 23.95 35.97 28.48
P/S 2.27 3.04 2.95
P/B 3.05 4.63 2.68
Price to free cash flow 25.58 29.24 31.70
EV/EBITDA 16.68 18.97 16.85
EV/Sales 2.24 3.47 2.74
Earnings yield 4.17% 2.78% 0.89%
Free cash flow yield 3.91% 3.42% 0.00%

Profitability

Metric DRS HXL Aerospace & Defense median
Gross margin 25.25% 25.23% 26.41%
Operating margin 10.84% 12.21% 3.69%
Net margin 9.40% 8.50% 2.74%
Free cash flow margin 8.88% 10.39% 0.00%
Return on equity 13.18% 11.86% 4.44%
Return on assets 8.47% 6.25% 1.90%
Return on invested capital 9.50% 7.04% 0.26%

Growth

Metric DRS HXL Aerospace & Defense median
Revenue growth (TTM) 8.85% 7.57% 18.03%
EPS growth (last fiscal year) 28.75% (13.84%) 24.80%
Revenue growth, 5-year CAGR 116.77% 4.74% 9.73%
Net income growth, 5-year CAGR 118.05% 28.11% 0.00%

Health

Metric DRS HXL Aerospace & Defense median
Debt to equity 0.06 0.71 0.20
Current ratio 1.88 2.57 2.85
Net debt to EBITDA (0.68) 3.15 1.29

Dividend

Metric DRS HXL Aerospace & Defense median
Dividend yield — 0.89% 0.91%
Payout ratio — 0.32 0.30

Size

Metric DRS HXL Aerospace & Defense median
Market cap 8.80b 6.10b 1.78b

Compare with another peer

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