Heico Corporation (HEI.A) vs L3Harris Technologies Inc (LHX)

Heico Corporation and L3Harris Technologies Inc are both Aerospace & Defense companies. L3Harris Technologies Inc is the larger, with a market value of $44.5B against $36.3B — 1.2× the size. L3Harris Technologies Inc trades at the lower P/E: 23.9× against 38.2×. Heico Corporation grew revenue faster over the last twelve months: 20.7% against 7.29%. Heico Corporation has the higher net margin (16.4% vs 8.11%) and the higher return on invested capital (10.6% vs 5.12%). Both pay a dividend; L3Harris Technologies Inc yields more (2.32% vs 0.17%). Across the 23 metrics below, Heico Corporation leads on 14 and L3Harris Technologies Inc on 9.

Valuation

Metric HEI.A LHX Aerospace & Defense median
P/E 38.16 23.86 33.00
P/S 6.26 1.93 3.63
P/B 6.45 2.23 3.24
Price to free cash flow 31.46 15.77 34.01
EV/EBITDA 23.74 14.60 18.69
EV/Sales 6.71 2.34 3.94
Earnings yield 2.62% 4.19% 1.31%
Free cash flow yield 3.18% 6.34% 0.00%

Profitability

Metric HEI.A LHX Aerospace & Defense median
Gross margin 40.40% 25.48% 25.48%
Operating margin 24.04% 10.49% 4.54%
Net margin 16.38% 8.11% 2.22%
Free cash flow margin 19.90% 12.24% 0.00%
Return on equity 18.35% 9.50% 6.43%
Return on assets 9.18% 4.42% 2.70%
Return on invested capital 10.62% 5.12% 1.56%

Growth

Metric HEI.A LHX Aerospace & Defense median
Revenue growth (TTM) 20.69% 7.29% 18.43%
EPS growth (last fiscal year) 33.51% 8.39% —
Revenue growth, 5-year CAGR 20.21% 3.74% 9.62%
Net income growth, 5-year CAGR 17.07% 7.49% 0.00%

Health

Metric HEI.A LHX Aerospace & Defense median
Debt to equity 0.51 0.55 0.24
Current ratio 2.72 1.18 2.72
Net debt to EBITDA 1.61 2.68 1.12

Dividend

Metric HEI.A LHX Aerospace & Defense median
Dividend yield 0.17% 2.32% 1.04%
Payout ratio 0.07 1.07 0.00

Size

Metric HEI.A LHX Aerospace & Defense median
Market cap 36.31b 44.49b 2.52b

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