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 ($13.6B and $13.0B). Textron Inc. trades at the lower P/E: 14.5× against 31.8×. 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 (0.18% vs 0.09%). 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 31.83 14.45 33.00
P/S 1.69 0.87 3.63
P/B 3.67 1.65 3.24
Price to free cash flow 20.06 17.37 34.01
EV/EBITDA 14.11 10.87 18.69
EV/Sales 1.71 1.01 3.94
Earnings yield 3.14% 6.92% 1.31%
Free cash flow yield 4.99% 5.76% 0.00%

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% 0.00%
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% —
Revenue growth, 5-year CAGR 14.98% 4.90% 9.62%
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 0.18% 0.09% 1.04%
Payout ratio 0.00 0.02 0.00

Size

Metric EMBJ TXT Aerospace & Defense median
Market cap 13.60b 13.00b 2.52b

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