Heico Corporation (HEI.A) 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 $38.9B — 2.1× the size. Howmet Aerospace Inc. trades at the lower P/E: 40.2× against 41.0×. 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%). Across the 22 metrics below, Heico Corporation leads on 11 and Howmet Aerospace Inc. on 11.

Valuation

Metric HEI.A HWM Aerospace & Defense median
P/E 40.95 40.16 29.42
P/S 6.72 8.42 3.05
P/B 6.92 14.22 2.91
Price to free cash flow 33.76 37.99 29.52
EV/EBITDA 25.36 27.98 17.23
EV/Sales 7.16 8.78 3.25
Earnings yield 2.44% 2.49% 0.95%
Free cash flow yield 2.96% 2.63% 0.00%

Profitability

Metric HEI.A 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% 0.73%
Return on equity 18.35% 37.84% 5.39%
Return on assets 9.18% 16.79% 2.18%
Return on invested capital 10.62% 18.33% 0.64%

Growth

Metric HEI.A 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.A HWM Aerospace & Defense median
Debt to equity 0.51 0.70 0.18
Current ratio 2.72 1.86 2.85
Net debt to EBITDA 1.61 0.99 1.29

Dividend

Metric HEI.A HWM Aerospace & Defense median
Dividend yield — 0.25% 0.89%
Payout ratio — 0.10 0.30

Size

Metric HEI.A HWM Aerospace & Defense median
Market cap 38.89b 79.89b 1.52b

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