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 $9.5B against $6.8B — 1.4× the size. Leonardo DRS, Inc. trades at the lower P/E: 29.1× against 45.1×. Leonardo DRS, Inc. grew revenue faster over the last twelve months: 10.5% against 5.41%. Leonardo DRS, Inc. has the higher net margin (8.52% vs 7.76%) and the higher return on invested capital (9.27% vs 6.47%). Across the 22 metrics below, Leonardo DRS, Inc. leads on 18 and Hexcel Corporation on 4.

Valuation

Metric DRS HXL Aerospace & Defense median
P/E 29.07 45.11 31.81
P/S 2.50 3.45 3.55
P/B 3.38 5.26 2.59
Price to free cash flow 26.00 26.72 31.99
EV/EBITDA 18.87 22.05 18.08
EV/Sales 2.47 3.91 3.37
Earnings yield 3.44% 2.22% 1.38%
Free cash flow yield 3.85% 3.74% 0.21%

Profitability

Metric DRS HXL Aerospace & Defense median
Gross margin 24.87% 24.96% 25.48%
Operating margin 10.53% 11.50% 4.54%
Net margin 8.52% 7.76% 2.22%
Free cash flow margin 9.63% 12.92% 1.43%
Return on equity 11.92% 10.76% 6.43%
Return on assets 7.78% 5.51% 2.70%
Return on invested capital 9.27% 6.47% 1.56%

Growth

Metric DRS HXL Aerospace & Defense median
Revenue growth (TTM) 10.46% 5.41% 18.43%
EPS growth (last fiscal year) 28.75% (13.84%) 24.27%
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 0.05 0.74 0.24
Current ratio 1.92 2.43 2.72
Net debt to EBITDA (0.68) 3.15 1.12

Dividend

Metric DRS HXL Aerospace & Defense median
Dividend yield — 0.79% 0.90%
Payout ratio — 0.36 0.32

Size

Metric DRS HXL Aerospace & Defense median
Market cap 9.47b 6.80b 2.19b

Compare with another peer

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