GE Aerospace (GE) vs Howmet Aerospace Inc. (HWM)

GE Aerospace and Howmet Aerospace Inc. are both Aerospace & Defense companies. GE Aerospace is the larger, with a market value of $333.1B against $91.7B — 3.6× the size. GE Aerospace trades at the lower P/E: 38.2× against 49.9×. GE Aerospace grew revenue faster over the last twelve months: 21.7% against 18.1%. Howmet Aerospace Inc. has the higher net margin (20.5% vs 17.7%) and the lower return on invested capital (16.9% vs 26.5%). Both pay a dividend; GE Aerospace yields more (0.29% vs 0.29%). Across the 22 metrics below, Howmet Aerospace Inc. leads on 12 and GE Aerospace on 10.

Valuation

Metric GE HWM Aerospace & Defense median
P/E 38.21 49.89 33.00
P/S 6.72 10.20 3.63
P/B 19.04 16.22 3.24
Price to free cash flow 49.62 46.10 34.01
EV/EBITDA 26.96 34.48 18.69
EV/Sales 6.91 10.58 3.94
Earnings yield 2.62% 2.00% 1.31%
Free cash flow yield 2.02% 2.17% 0.00%

Profitability

Metric GE HWM Aerospace & Defense median
Gross margin 35.38% 36.03% 25.48%
Operating margin 23.20% 27.37% 4.54%
Net margin 17.72% 20.51% 2.22%
Free cash flow margin 16.89% 22.12% 0.00%
Return on equity 48.22% 34.89% 6.43%
Return on assets 7.09% 15.39% 2.70%
Return on invested capital 26.53% 16.91% 1.56%

Growth

Metric GE HWM Aerospace & Defense median
Revenue growth (TTM) 21.69% 18.08% 18.43%
EPS growth (last fiscal year) 35.89% 32.03% —
Revenue growth, 5-year CAGR (9.57%) 9.43% 9.62%
Net income growth, 5-year CAGR 10.72% 42.20% 0.00%

Health

Metric GE HWM Aerospace & Defense median
Debt to equity 1.07 0.71 0.24
Current ratio 0.98 1.82 2.72
Net debt to EBITDA 0.65 0.99 1.12

Dividend

Metric GE HWM Aerospace & Defense median
Dividend yield 0.29% 0.29% 1.04%
Payout ratio 0.03 0.11 0.00

Size

Metric GE HWM Aerospace & Defense median
Market cap 333.06b 91.73b 2.52b

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