Heico Corporation (HEI) vs Howmet Aerospace Inc. (HWM)

Heico Corporation and Howmet Aerospace Inc. are both Aerospace & Defense companies. Howmet Aerospace Inc. is the larger, with a market value of $79.9B against $38.5B — 2.1× the size. Howmet Aerospace Inc. trades at the lower P/E: 39.3× against 53.7×. Howmet Aerospace Inc. grew revenue faster over the last twelve months: 22.0% against 20.7%. Howmet Aerospace Inc. has the higher net margin (21.1% vs 16.4%) and the higher return on invested capital (18.3% vs 10.6%). Both pay a dividend; Howmet Aerospace Inc. yields more (0.32% vs 0.08%). Across the 23 metrics below, Howmet Aerospace Inc. leads on 17 and Heico Corporation on 6.

Valuation

Metric HEI HWM Aerospace & Defense median
P/E 53.72 39.32 28.48
P/S 8.81 8.24 2.95
P/B 9.08 13.92 2.68
Price to free cash flow 44.29 37.19 31.70
EV/EBITDA 32.78 27.42 16.85
EV/Sales 9.26 8.61 2.74
Earnings yield 1.86% 2.54% 0.89%
Free cash flow yield 2.26% 2.69% 0.00%

Profitability

Metric HEI HWM Aerospace & Defense median
Gross margin 40.40% 36.63% 26.41%
Operating margin 24.04% 28.05% 3.69%
Net margin 16.38% 21.10% 2.74%
Free cash flow margin 19.90% 22.16% 0.00%
Return on equity 18.35% 37.84% 4.44%
Return on assets 9.18% 16.79% 1.90%
Return on invested capital 10.62% 18.33% 0.26%

Growth

Metric HEI HWM Aerospace & Defense median
Revenue growth (TTM) 20.69% 22.02% 18.03%
EPS growth (last fiscal year) 33.51% 32.03% 24.80%
Revenue growth, 5-year CAGR 20.21% 9.43% 9.73%
Net income growth, 5-year CAGR 17.07% 42.20% 0.00%

Health

Metric HEI HWM Aerospace & Defense median
Debt to equity 0.51 0.70 0.20
Current ratio 2.72 1.86 2.85
Net debt to EBITDA 1.61 0.99 1.29

Dividend

Metric HEI HWM Aerospace & Defense median
Dividend yield 0.08% 0.32% 0.91%
Payout ratio 0.04 0.13 0.30

Size

Metric HEI HWM Aerospace & Defense median
Market cap 38.54b 79.89b 1.78b

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