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 $36.3B against $32.9B — 1.1× the size. Heico Corporation trades at the lower P/E: 50.7× 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 (0.98% vs 0.13%). Across the 23 metrics below, Heico Corporation leads on 14 and Elbit Systems Ltd. on 9.

Valuation

Metric ESLT HEI Aerospace & Defense median
P/E 53.73 50.75 33.00
P/S 4.02 8.33 3.63
P/B 8.07 8.58 3.24
Price to free cash flow 50.29 41.84 34.01
EV/EBITDA 34.80 31.05 18.69
EV/Sales 3.94 8.77 3.94
Earnings yield 1.86% 1.97% 1.31%
Free cash flow yield 1.99% 2.39% 0.00%

Profitability

Metric ESLT HEI Aerospace & Defense median
Gross margin 25.03% 40.40% 25.48%
Operating margin 9.22% 24.04% 4.54%
Net margin 7.44% 16.38% 2.22%
Free cash flow margin 8.00% 19.90% 0.00%
Return on equity 0.00% 18.35% 6.43%
Return on assets 4.90% 9.18% 2.70%
Return on invested capital 13.26% 10.62% 1.56%

Growth

Metric ESLT HEI Aerospace & Defense median
Revenue growth (TTM) 13.70% 20.69% 18.43%
EPS growth (last fiscal year) 58.64% 33.51% —
Revenue growth, 5-year CAGR 11.23% 20.21% 9.62%
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 0.24
Current ratio 1.39 2.72 2.72
Net debt to EBITDA (0.57) 1.61 1.12

Dividend

Metric ESLT HEI Aerospace & Defense median
Dividend yield 0.98% 0.13% 1.04%
Payout ratio 0.34 0.07 0.00

Size

Metric ESLT HEI Aerospace & Defense median
Market cap 32.94b 36.31b 2.52b

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