Embraer-Empresa Brasileira de Aeronautica (EMBJ) vs Textron Inc. (TXT)

Embraer-Empresa Brasileira de Aeronautica and Textron Inc. are both Aerospace & Defense companies. Embraer-Empresa Brasileira de Aeronautica and Textron Inc. are of similar size ($14.4B and $13.2B). Textron Inc. trades at the lower P/E: 15.0× against 29.9×. Embraer-Empresa Brasileira de Aeronautica grew revenue faster over the last twelve months: 20.4% against 8.51%. Textron Inc. has the higher net margin (6.30% vs 5.35%) and the lower return on invested capital (6.30% vs 11.8%). Both pay a dividend; Embraer-Empresa Brasileira de Aeronautica yields more (1.14% vs 0.10%). Across the 23 metrics below, Textron Inc. leads on 15 and Embraer-Empresa Brasileira de Aeronautica on 8.

Valuation

Metric EMBJ TXT Aerospace & Defense median
P/E 29.95 15.02 29.42
P/S 1.59 0.93 3.05
P/B 3.46 1.76 2.91
Price to free cash flow 18.87 17.57 29.52
EV/EBITDA 13.29 11.46 17.23
EV/Sales 1.61 1.06 3.25
Earnings yield 3.34% 6.66% 0.95%
Free cash flow yield 5.30% 5.69% 0.00%

Profitability

Metric EMBJ TXT Aerospace & Defense median
Gross margin 17.89% 17.67% 26.41%
Operating margin 8.93% 6.67% 3.69%
Net margin 5.35% 6.30% 2.74%
Free cash flow margin 8.41% 5.28% 0.73%
Return on equity 11.99% 12.47% 5.39%
Return on assets 3.52% 5.45% 2.18%
Return on invested capital 11.76% 6.30% 0.64%

Growth

Metric EMBJ TXT Aerospace & Defense median
Revenue growth (TTM) 20.38% 8.51% 18.03%
EPS growth (last fiscal year) 0.00% 18.01% 24.80%
Revenue growth, 5-year CAGR 14.98% 4.90% 9.73%
Net income growth, 5-year CAGR 0.00% 24.41% 0.00%

Health

Metric EMBJ TXT Aerospace & Defense median
Debt to equity 0.61 0.47 0.18
Current ratio 1.44 1.80 2.85
Net debt to EBITDA (0.17) 1.32 1.29

Dividend

Metric EMBJ TXT Aerospace & Defense median
Dividend yield 1.14% 0.10% 0.89%
Payout ratio 0.34 0.01 0.30

Size

Metric EMBJ TXT Aerospace & Defense median
Market cap 13.20b 14.44b 1.52b

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