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 $44.5B against $32.9B — 1.4× the size. L3Harris Technologies Inc trades at the lower P/E: 23.9× against 53.7×. 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 (2.32% vs 0.98%). 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 53.73 23.86 33.00
P/S 4.02 1.93 3.63
P/B 8.07 2.23 3.24
Price to free cash flow 50.29 15.77 34.01
EV/EBITDA 34.80 14.60 18.69
EV/Sales 3.94 2.34 3.94
Earnings yield 1.86% 4.19% 1.31%
Free cash flow yield 1.99% 6.34% 0.00%

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% 0.00%
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% —
Revenue growth, 5-year CAGR 11.23% 3.74% 9.62%
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 0.98% 2.32% 1.04%
Payout ratio 0.34 1.07 0.00

Size

Metric ESLT LHX Aerospace & Defense median
Market cap 32.94b 44.49b 2.52b

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