Huntington Ingalls Industries, Inc. (HII) vs Textron Inc. (TXT)

Huntington Ingalls Industries, Inc. and Textron Inc. are both Aerospace & Defense companies. Textron Inc. is the larger, with a market value of $13.0B against $10.5B — 1.2× the size. Textron Inc. trades at the lower P/E: 14.5× against 15.7×. Huntington Ingalls Industries, Inc. grew revenue faster over the last twelve months: 14.0% against 8.80%. Textron Inc. has the higher net margin (6.12% vs 5.01%) and the higher return on invested capital (6.25% vs 5.45%). Both pay a dividend; Huntington Ingalls Industries, Inc. yields more (1.97% vs 0.09%). Across the 22 metrics below, Textron Inc. leads on 15 and Huntington Ingalls Industries, Inc. on 7.

Valuation

Metric HII TXT Aerospace & Defense median
P/E 15.72 14.45 33.00
P/S 0.79 0.87 3.63
P/B 1.96 1.65 3.24
Price to free cash flow n/m 17.37 34.01
EV/EBITDA 12.25 10.87 18.69
EV/Sales 1.00 1.01 3.94
Earnings yield 6.36% 6.92% 1.31%
Free cash flow yield (0.82%) 5.76% 0.00%

Profitability

Metric HII TXT Aerospace & Defense median
Gross margin 12.40% 17.77% 25.48%
Operating margin 5.68% 6.71% 4.54%
Net margin 5.01% 6.12% 2.22%
Free cash flow margin (0.64%) 5.00% 0.00%
Return on equity 12.97% 12.10% 6.43%
Return on assets 5.33% 5.32% 2.70%
Return on invested capital 5.45% 6.25% 1.56%

Growth

Metric HII TXT Aerospace & Defense median
Revenue growth (TTM) 13.97% 8.80% 18.43%
EPS growth (last fiscal year) 10.24% 18.01% —
Revenue growth, 5-year CAGR 5.93% 4.90% 9.62%
Net income growth, 5-year CAGR (2.76%) 24.41% 0.00%

Health

Metric HII TXT Aerospace & Defense median
Debt to equity 0.51 0.47 0.24
Current ratio 1.23 1.86 2.72
Net debt to EBITDA 1.87 1.32 1.12

Dividend

Metric HII TXT Aerospace & Defense median
Dividend yield 1.97% 0.09% 1.04%
Payout ratio 0.38 0.02 0.00

Size

Metric HII TXT Aerospace & Defense median
Market cap 10.50b 13.00b 2.52b

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