Heico Corporation (HEI.A) vs Northrop Grumman Corporation (NOC)

Heico Corporation and Northrop Grumman Corporation are both Aerospace & Defense companies. Northrop Grumman Corporation is the larger, with a market value of $71.0B against $36.6B — 1.9× the size. Northrop Grumman Corporation trades at the lower P/E: 16.5× against 38.3×. Heico Corporation grew revenue faster over the last twelve months: 20.7% against 5.90%. Heico Corporation has the higher net margin (16.4% vs 10.5%) and the higher return on invested capital (10.6% vs 9.58%). Across the 22 metrics below, Heico Corporation leads on 13 and Northrop Grumman Corporation on 9.

Valuation

Metric HEI.A NOC Aerospace & Defense median
P/E 38.33 16.48 31.81
P/S 6.29 1.72 3.55
P/B 6.48 4.13 2.59
Price to free cash flow 31.60 20.26 31.99
EV/EBITDA 23.84 14.05 18.08
EV/Sales 6.73 2.00 3.37
Earnings yield 2.61% 6.07% 1.38%
Free cash flow yield 3.16% 4.94% 0.21%

Profitability

Metric HEI.A NOC Aerospace & Defense median
Gross margin 40.40% 20.06% 25.48%
Operating margin 24.04% 10.72% 4.54%
Net margin 16.38% 10.48% 2.22%
Free cash flow margin 19.90% 8.50% 1.43%
Return on equity 18.35% 26.96% 6.43%
Return on assets 9.18% 8.97% 2.70%
Return on invested capital 10.62% 9.58% 1.56%

Growth

Metric HEI.A NOC Aerospace & Defense median
Revenue growth (TTM) 20.69% 5.90% 18.43%
EPS growth (last fiscal year) 33.51% 2.61% 24.27%
Revenue growth, 5-year CAGR 20.21% 2.66% 9.73%
Net income growth, 5-year CAGR 17.07% 5.57% 0.00%

Health

Metric HEI.A NOC Aerospace & Defense median
Debt to equity 0.51 0.81 0.24
Current ratio 2.72 1.17 2.72
Net debt to EBITDA 1.61 1.80 1.12

Dividend

Metric HEI.A NOC Aerospace & Defense median
Dividend yield — 1.84% 0.90%
Payout ratio — 0.30 0.32

Size

Metric HEI.A NOC Aerospace & Defense median
Market cap 36.55b 70.98b 2.19b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack