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 $325.2B against $79.9B — 4.1× the size. GE Aerospace trades at the lower P/E: 36.0× against 39.3×. Howmet Aerospace Inc. grew revenue faster over the last twelve months: 22.0% against 19.6%. Howmet Aerospace Inc. has the higher net margin (21.1% vs 17.3%) and the lower return on invested capital (18.3% vs 27.4%). Both pay a dividend; GE Aerospace yields more (0.56% vs 0.32%). Across the 23 metrics below, Howmet Aerospace Inc. leads on 13 and GE Aerospace on 10.

Valuation

Metric GE HWM Aerospace & Defense median
P/E 35.97 39.32 28.48
P/S 6.18 8.24 2.95
P/B 18.31 13.92 2.68
Price to free cash flow 49.64 37.19 31.70
EV/EBITDA 24.57 27.42 16.85
EV/Sales 6.38 8.61 2.74
Earnings yield 2.78% 2.54% 0.89%
Free cash flow yield 2.01% 2.69% 0.00%

Profitability

Metric GE HWM Aerospace & Defense median
Gross margin 35.22% 36.63% 26.41%
Operating margin 23.56% 28.05% 3.69%
Net margin 17.31% 21.10% 2.74%
Free cash flow margin 15.68% 22.16% 0.00%
Return on equity 49.51% 37.84% 4.44%
Return on assets 7.13% 16.79% 1.90%
Return on invested capital 27.35% 18.33% 0.26%

Growth

Metric GE HWM Aerospace & Defense median
Revenue growth (TTM) 19.62% 22.02% 18.03%
EPS growth (last fiscal year) 35.89% 32.03% 24.80%
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 1.09 0.70 0.20
Current ratio 0.98 1.86 2.85
Net debt to EBITDA 0.65 0.99 1.29

Dividend

Metric GE HWM Aerospace & Defense median
Dividend yield 0.56% 0.32% 0.91%
Payout ratio 0.20 0.13 0.30

Size

Metric GE HWM Aerospace & Defense median
Market cap 325.23b 79.89b 1.78b

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