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 $91.7B against $36.3B — 2.5× the size. Howmet Aerospace Inc. trades at the lower P/E: 49.9× against 50.7×. Heico Corporation grew revenue faster over the last twelve months: 20.7% against 18.1%. Howmet Aerospace Inc. has the higher net margin (20.5% vs 16.4%) and the higher return on invested capital (16.9% vs 10.6%). Both pay a dividend; Howmet Aerospace Inc. yields more (0.29% vs 0.13%). Across the 23 metrics below, Heico Corporation leads on 12 and Howmet Aerospace Inc. on 11.

Valuation

Metric HEI HWM Aerospace & Defense median
P/E 50.75 49.89 33.00
P/S 8.33 10.20 3.63
P/B 8.58 16.22 3.24
Price to free cash flow 41.84 46.10 34.01
EV/EBITDA 31.05 34.48 18.69
EV/Sales 8.77 10.58 3.94
Earnings yield 1.97% 2.00% 1.31%
Free cash flow yield 2.39% 2.17% 0.00%

Profitability

Metric HEI HWM Aerospace & Defense median
Gross margin 40.40% 36.03% 25.48%
Operating margin 24.04% 27.37% 4.54%
Net margin 16.38% 20.51% 2.22%
Free cash flow margin 19.90% 22.12% 0.00%
Return on equity 18.35% 34.89% 6.43%
Return on assets 9.18% 15.39% 2.70%
Return on invested capital 10.62% 16.91% 1.56%

Growth

Metric HEI HWM Aerospace & Defense median
Revenue growth (TTM) 20.69% 18.08% 18.43%
EPS growth (last fiscal year) 33.51% 32.03% —
Revenue growth, 5-year CAGR 20.21% 9.43% 9.62%
Net income growth, 5-year CAGR 17.07% 42.20% 0.00%

Health

Metric HEI HWM Aerospace & Defense median
Debt to equity 0.51 0.71 0.24
Current ratio 2.72 1.82 2.72
Net debt to EBITDA 1.61 0.99 1.12

Dividend

Metric HEI HWM Aerospace & Defense median
Dividend yield 0.13% 0.29% 1.04%
Payout ratio 0.07 0.11 0.00

Size

Metric HEI HWM Aerospace & Defense median
Market cap 36.31b 91.73b 2.52b

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