Elbit Systems Ltd. (ESLT) vs Heico Corporation (HEI)

Elbit Systems Ltd. and Heico Corporation are both Aerospace & Defense companies. Heico Corporation is the larger, with a market value of $38.5B against $30.5B — 1.3× the size. Elbit Systems Ltd. trades at the lower P/E: 47.9× against 53.7×. Heico Corporation grew revenue faster over the last twelve months: 20.7% against 13.7%. Heico Corporation has the higher net margin (16.4% vs 7.44%) and the lower return on invested capital (10.6% vs 13.3%). Both pay a dividend; Elbit Systems Ltd. yields more (0.57% vs 0.08%). Across the 23 metrics below, Elbit Systems Ltd. leads on 12 and Heico Corporation on 11.

Valuation

Metric ESLT HEI Aerospace & Defense median
P/E 47.87 53.72 28.48
P/S 3.58 8.81 2.95
P/B 7.19 9.08 2.68
Price to free cash flow 44.81 44.29 31.70
EV/EBITDA 30.93 32.78 16.85
EV/Sales 3.50 9.26 2.74
Earnings yield 2.09% 1.86% 0.89%
Free cash flow yield 2.23% 2.26% 0.00%

Profitability

Metric ESLT HEI Aerospace & Defense median
Gross margin 25.03% 40.40% 26.41%
Operating margin 9.22% 24.04% 3.69%
Net margin 7.44% 16.38% 2.74%
Free cash flow margin 8.00% 19.90% 0.00%
Return on equity 0.00% 18.35% 4.44%
Return on assets 4.90% 9.18% 1.90%
Return on invested capital 13.26% 10.62% 0.26%

Growth

Metric ESLT HEI Aerospace & Defense median
Revenue growth (TTM) 13.70% 20.69% 18.03%
EPS growth (last fiscal year) 58.64% 33.51% 24.80%
Revenue growth, 5-year CAGR 11.23% 20.21% 9.73%
Net income growth, 5-year CAGR 17.59% 17.07% 0.00%

Health

Metric ESLT HEI Aerospace & Defense median
Debt to equity 0.06 0.51 0.20
Current ratio 1.39 2.72 2.85
Net debt to EBITDA (0.57) 1.61 1.29

Dividend

Metric ESLT HEI Aerospace & Defense median
Dividend yield 0.57% 0.08% 0.91%
Payout ratio 0.28 0.04 0.30

Size

Metric ESLT HEI Aerospace & Defense median
Market cap 30.53b 38.54b 1.78b

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