Embraer-Empresa Brasileira de Aeronautica (EMBJ) vs Huntington Ingalls Industries, Inc. (HII)

Embraer-Empresa Brasileira de Aeronautica and Huntington Ingalls Industries, Inc. are both Aerospace & Defense companies. Embraer-Empresa Brasileira de Aeronautica is the larger, with a market value of $13.6B against $10.5B — 1.3× the size. Huntington Ingalls Industries, Inc. trades at the lower P/E: 15.7× against 31.8×. Embraer-Empresa Brasileira de Aeronautica grew revenue faster over the last twelve months: 20.4% against 14.0%. Embraer-Empresa Brasileira de Aeronautica has the higher net margin (5.35% vs 5.01%) and the higher return on invested capital (11.8% vs 5.45%). Both pay a dividend; Huntington Ingalls Industries, Inc. yields more (1.97% vs 0.18%). Across the 22 metrics below, Embraer-Empresa Brasileira de Aeronautica leads on 11 and Huntington Ingalls Industries, Inc. on 11.

Valuation

Metric EMBJ HII Aerospace & Defense median
P/E 31.83 15.72 33.00
P/S 1.69 0.79 3.63
P/B 3.67 1.96 3.24
Price to free cash flow 20.06 n/m 34.01
EV/EBITDA 14.11 12.25 18.69
EV/Sales 1.71 1.00 3.94
Earnings yield 3.14% 6.36% 1.31%
Free cash flow yield 4.99% (0.82%) 0.00%

Profitability

Metric EMBJ HII Aerospace & Defense median
Gross margin 17.89% 12.40% 25.48%
Operating margin 8.93% 5.68% 4.54%
Net margin 5.35% 5.01% 2.22%
Free cash flow margin 8.41% (0.64%) 0.00%
Return on equity 11.99% 12.97% 6.43%
Return on assets 3.52% 5.33% 2.70%
Return on invested capital 11.76% 5.45% 1.56%

Growth

Metric EMBJ HII Aerospace & Defense median
Revenue growth (TTM) 20.38% 13.97% 18.43%
EPS growth (last fiscal year) 0.00% 10.24% —
Revenue growth, 5-year CAGR 14.98% 5.93% 9.62%
Net income growth, 5-year CAGR 0.00% (2.76%) 0.00%

Health

Metric EMBJ HII Aerospace & Defense median
Debt to equity 0.61 0.51 0.24
Current ratio 1.44 1.23 2.72
Net debt to EBITDA (0.17) 1.87 1.12

Dividend

Metric EMBJ HII Aerospace & Defense median
Dividend yield 0.18% 1.97% 1.04%
Payout ratio 0.00 0.38 0.00

Size

Metric EMBJ HII Aerospace & Defense median
Market cap 13.60b 10.50b 2.52b

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