Elbit Systems Ltd. (ESLT) vs L3Harris Technologies Inc (LHX)

Elbit Systems Ltd. and L3Harris Technologies Inc are both Aerospace & Defense companies. L3Harris Technologies Inc is the larger, with a market value of $44.8B against $34.8B — 1.3× the size. L3Harris Technologies Inc trades at the lower P/E: 25.0× against 55.2×. Elbit Systems Ltd. grew revenue faster over the last twelve months: 13.7% against 7.29%. L3Harris Technologies Inc has the higher net margin (8.11% vs 7.44%) and the lower return on invested capital (5.12% vs 13.3%). Both pay a dividend; L3Harris Technologies Inc yields more (1.99% vs 0.50%). Across the 23 metrics below, L3Harris Technologies Inc leads on 14 and Elbit Systems Ltd. on 9.

Valuation

Metric ESLT LHX Aerospace & Defense median
P/E 55.22 24.95 31.81
P/S 4.13 2.02 3.55
P/B 8.29 2.33 2.59
Price to free cash flow 51.69 16.49 31.99
EV/EBITDA 35.79 15.15 18.08
EV/Sales 4.05 2.43 3.37
Earnings yield 1.81% 4.01% 1.38%
Free cash flow yield 1.93% 6.06% 0.21%

Profitability

Metric ESLT LHX Aerospace & Defense median
Gross margin 25.03% 25.48% 25.48%
Operating margin 9.22% 10.49% 4.54%
Net margin 7.44% 8.11% 2.22%
Free cash flow margin 8.00% 12.24% 1.43%
Return on equity 0.00% 9.50% 6.43%
Return on assets 4.90% 4.42% 2.70%
Return on invested capital 13.26% 5.12% 1.56%

Growth

Metric ESLT LHX Aerospace & Defense median
Revenue growth (TTM) 13.70% 7.29% 18.43%
EPS growth (last fiscal year) 58.64% 8.39% 24.27%
Revenue growth, 5-year CAGR 11.23% 3.74% 9.73%
Net income growth, 5-year CAGR 17.59% 7.49% 0.00%

Health

Metric ESLT LHX Aerospace & Defense median
Debt to equity 0.06 0.55 0.24
Current ratio 1.39 1.18 2.72
Net debt to EBITDA (0.57) 2.68 1.12

Dividend

Metric ESLT LHX Aerospace & Defense median
Dividend yield 0.50% 1.99% 0.90%
Payout ratio 0.28 0.50 0.32

Size

Metric ESLT LHX Aerospace & Defense median
Market cap 34.76b 44.78b 2.19b

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