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 $323.7B against $87.6B — 3.7× the size. GE Aerospace trades at the lower P/E: 36.7× against 47.4×. 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 (0.56% vs 0.23%). Across the 23 metrics below, Howmet Aerospace Inc. leads on 12 and GE Aerospace on 11.

Valuation

Metric GE HWM Aerospace & Defense median
P/E 36.73 47.42 31.81
P/S 6.46 9.69 3.55
P/B 18.30 15.42 2.59
Price to free cash flow 47.70 43.82 31.99
EV/EBITDA 25.95 32.83 18.08
EV/Sales 6.65 10.08 3.37
Earnings yield 2.72% 2.11% 1.38%
Free cash flow yield 2.10% 2.28% 0.21%

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% 1.43%
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% 24.27%
Revenue growth, 5-year CAGR (9.57%) 9.43% 9.73%
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 0.56% 0.23% 0.90%
Payout ratio 0.21 0.11 0.32

Size

Metric GE HWM Aerospace & Defense median
Market cap 323.72b 87.62b 2.19b

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