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 ($12.9B and $12.8B). Textron Inc. trades at the lower P/E: 14.3× against 29.3×. Embraer-Empresa Brasileira de Aeronautica grew revenue faster over the last twelve months: 20.4% against 8.80%. Textron Inc. has the higher net margin (6.12% vs 5.35%) and the lower return on invested capital (6.25% vs 11.8%). Both pay a dividend; Embraer-Empresa Brasileira de Aeronautica yields more (1.16% vs 0.11%). 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 29.29 14.33 31.81
P/S 1.55 0.86 3.55
P/B 3.38 1.64 2.59
Price to free cash flow 18.45 17.22 31.99
EV/EBITDA 13.00 10.79 18.08
EV/Sales 1.58 1.00 3.37
Earnings yield 3.41% 6.98% 1.38%
Free cash flow yield 5.42% 5.81% 0.21%

Profitability

Metric EMBJ TXT Aerospace & Defense median
Gross margin 17.89% 17.77% 25.48%
Operating margin 8.93% 6.71% 4.54%
Net margin 5.35% 6.12% 2.22%
Free cash flow margin 8.41% 5.00% 1.43%
Return on equity 11.99% 12.10% 6.43%
Return on assets 3.52% 5.32% 2.70%
Return on invested capital 11.76% 6.25% 1.56%

Growth

Metric EMBJ TXT Aerospace & Defense median
Revenue growth (TTM) 20.38% 8.80% 18.43%
EPS growth (last fiscal year) 0.00% 18.01% 24.27%
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 0.24
Current ratio 1.44 1.86 2.72
Net debt to EBITDA (0.17) 1.32 1.12

Dividend

Metric EMBJ TXT Aerospace & Defense median
Dividend yield 1.16% 0.11% 0.90%
Payout ratio 0.34 0.02 0.32

Size

Metric EMBJ TXT Aerospace & Defense median
Market cap 12.83b 12.92b 2.19b

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