Heico Corporation (HEI.A) vs Woodward, Inc. (WWD)

Heico Corporation and Woodward, Inc. are both Aerospace & Defense companies. Heico Corporation is the larger, with a market value of $36.3B against $19.2B — 1.9× the size. Woodward, Inc. trades at the lower P/E: 35.7× against 38.2×. Woodward, Inc. grew revenue faster over the last twelve months: 22.4% against 20.7%. Heico Corporation has the higher net margin (16.4% vs 13.2%) and the lower return on invested capital (10.6% vs 12.3%). Both pay a dividend; Woodward, Inc. yields more (0.69% vs 0.17%). Across the 23 metrics below, Heico Corporation leads on 13 and Woodward, Inc. on 10.

Valuation

Metric HEI.A WWD Aerospace & Defense median
P/E 38.16 35.71 33.00
P/S 6.26 4.68 3.63
P/B 6.45 7.94 3.24
Price to free cash flow 31.46 52.15 34.01
EV/EBITDA 23.74 26.42 18.69
EV/Sales 6.71 4.89 3.94
Earnings yield 2.62% 2.80% 1.31%
Free cash flow yield 3.18% 1.92% 0.00%

Profitability

Metric HEI.A WWD Aerospace & Defense median
Gross margin 40.40% 29.47% 25.48%
Operating margin 24.04% 15.64% 4.54%
Net margin 16.38% 13.17% 2.22%
Free cash flow margin 19.90% 8.98% 0.00%
Return on equity 18.35% 22.34% 6.43%
Return on assets 9.18% 11.14% 2.70%
Return on invested capital 10.62% 12.27% 1.56%

Growth

Metric HEI.A WWD Aerospace & Defense median
Revenue growth (TTM) 20.69% 22.35% 18.43%
EPS growth (last fiscal year) 33.51% 19.63% —
Revenue growth, 5-year CAGR 20.21% 7.41% 9.62%
Net income growth, 5-year CAGR 17.07% 12.96% 0.00%

Health

Metric HEI.A WWD Aerospace & Defense median
Debt to equity 0.51 0.54 0.24
Current ratio 2.72 1.65 2.72
Net debt to EBITDA 1.61 0.63 1.12

Dividend

Metric HEI.A WWD Aerospace & Defense median
Dividend yield 0.17% 0.69% 1.04%
Payout ratio 0.07 0.25 0.00

Size

Metric HEI.A WWD Aerospace & Defense median
Market cap 36.31b 19.24b 2.52b

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