Leonardo DRS, Inc. (DRS) vs Textron Inc. (TXT)

Leonardo DRS, Inc. and Textron Inc. are both Aerospace & Defense companies. Textron Inc. is the larger, with a market value of $13.0B against $10.0B — 1.3× the size. Textron Inc. trades at the lower P/E: 14.5× against 30.4×. Leonardo DRS, Inc. grew revenue faster over the last twelve months: 10.5% against 8.80%. Leonardo DRS, Inc. has the higher net margin (8.52% vs 6.12%) and the higher return on invested capital (9.27% vs 6.25%). Across the 22 metrics below, Leonardo DRS, Inc. leads on 13 and Textron Inc. on 9.

Valuation

Metric DRS TXT Aerospace & Defense median
P/E 30.43 14.45 33.00
P/S 2.62 0.87 3.63
P/B 3.53 1.65 3.24
Price to free cash flow 27.21 17.37 34.01
EV/EBITDA 19.76 10.87 18.69
EV/Sales 2.59 1.01 3.94
Earnings yield 3.29% 6.92% 1.31%
Free cash flow yield 3.68% 5.76% 0.00%

Profitability

Metric DRS TXT Aerospace & Defense median
Gross margin 24.87% 17.77% 25.48%
Operating margin 10.53% 6.71% 4.54%
Net margin 8.52% 6.12% 2.22%
Free cash flow margin 9.63% 5.00% 0.00%
Return on equity 11.92% 12.10% 6.43%
Return on assets 7.78% 5.32% 2.70%
Return on invested capital 9.27% 6.25% 1.56%

Growth

Metric DRS TXT Aerospace & Defense median
Revenue growth (TTM) 10.46% 8.80% 18.43%
EPS growth (last fiscal year) 28.75% 18.01% —
Revenue growth, 5-year CAGR 116.77% 4.90% 9.62%
Net income growth, 5-year CAGR 118.05% 24.41% 0.00%

Health

Metric DRS TXT Aerospace & Defense median
Debt to equity 0.05 0.47 0.24
Current ratio 1.92 1.86 2.72
Net debt to EBITDA (0.68) 1.32 1.12

Dividend

Metric DRS TXT Aerospace & Defense median
Dividend yield — 0.09% 1.04%
Payout ratio 0.00 0.02 0.00

Size

Metric DRS TXT Aerospace & Defense median
Market cap 10.03b 13.00b 2.52b

Compare with another peer

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