GE Aerospace (GE) vs L3Harris Technologies Inc (LHX)

GE Aerospace and L3Harris Technologies Inc are both Aerospace & Defense companies. GE Aerospace is the larger, with a market value of $317.1B against $44.1B — 7.2× the size. L3Harris Technologies Inc trades at the lower P/E: 23.8× against 36.0×. GE Aerospace grew revenue faster over the last twelve months: 21.7% against 7.29%. GE Aerospace has the higher net margin (17.7% vs 8.11%) and the higher return on invested capital (26.5% vs 5.12%). Both pay a dividend; L3Harris Technologies Inc yields more (2.09% vs 0.57%). Across the 23 metrics below, L3Harris Technologies Inc leads on 12 and GE Aerospace on 11.

Valuation

Metric GE LHX Aerospace & Defense median
P/E 36.00 23.79 32.34
P/S 6.33 1.92 3.59
P/B 17.94 2.22 2.83
Price to free cash flow 46.76 15.72 31.13
EV/EBITDA 25.45 14.57 18.50
EV/Sales 6.52 2.34 3.61
Earnings yield 2.78% 4.20% 1.35%
Free cash flow yield 2.14% 6.36% 0.00%

Profitability

Metric GE LHX Aerospace & Defense median
Gross margin 35.38% 25.48% 25.48%
Operating margin 23.20% 10.49% 4.54%
Net margin 17.72% 8.11% 2.22%
Free cash flow margin 16.89% 12.24% 0.00%
Return on equity 48.22% 9.50% 6.43%
Return on assets 7.09% 4.42% 2.70%
Return on invested capital 26.53% 5.12% 1.56%

Growth

Metric GE LHX Aerospace & Defense median
Revenue growth (TTM) 21.69% 7.29% 18.43%
EPS growth (last fiscal year) 35.89% 8.39% 24.27%
Revenue growth, 5-year CAGR (9.57%) 3.74% 9.73%
Net income growth, 5-year CAGR 10.72% 7.49% 0.00%

Health

Metric GE LHX Aerospace & Defense median
Debt to equity 1.07 0.55 0.24
Current ratio 0.98 1.18 2.72
Net debt to EBITDA 0.65 2.68 1.12

Dividend

Metric GE LHX Aerospace & Defense median
Dividend yield 0.57% 2.09% 0.92%
Payout ratio 0.21 0.50 0.33

Size

Metric GE LHX Aerospace & Defense median
Market cap 317.10b 44.12b 2.33b

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