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 $74.6B against $38.9B — 1.9× the size. Northrop Grumman Corporation trades at the lower P/E: 16.5× against 40.0×. Heico Corporation grew revenue faster over the last twelve months: 20.7% against 6.51%. Heico Corporation has the higher net margin (16.4% vs 10.4%) and the higher return on invested capital (10.6% vs 9.84%). 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 40.04 16.52 28.48
P/S 6.57 1.71 2.95
P/B 6.77 3.99 2.68
Price to free cash flow 33.01 17.76 31.70
EV/EBITDA 24.83 13.87 16.85
EV/Sales 7.01 1.96 2.74
Earnings yield 2.50% 6.05% 0.89%
Free cash flow yield 3.03% 5.63% 0.00%

Profitability

Metric HEI.A NOC Aerospace & Defense median
Gross margin 40.40% 20.02% 26.41%
Operating margin 24.04% 10.61% 3.69%
Net margin 16.38% 10.37% 2.74%
Free cash flow margin 19.90% 9.64% 0.00%
Return on equity 18.35% 26.07% 4.44%
Return on assets 9.18% 8.88% 1.90%
Return on invested capital 10.62% 9.84% 0.26%

Growth

Metric HEI.A NOC Aerospace & Defense median
Revenue growth (TTM) 20.69% 6.51% 18.03%
EPS growth (last fiscal year) 33.51% 2.61% 24.80%
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 0.77 0.20
Current ratio 2.72 1.23 2.85
Net debt to EBITDA 1.61 1.80 1.29

Dividend

Metric HEI.A NOC Aerospace & Defense median
Dividend yield — 1.82% 0.91%
Payout ratio — 0.30 0.30

Size

Metric HEI.A NOC Aerospace & Defense median
Market cap 38.89b 74.62b 1.78b

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