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 $14.4B against $11.4B — 1.3× the size. Textron Inc. trades at the lower P/E: 15.4× against 15.6×. Huntington Ingalls Industries, Inc. grew revenue faster over the last twelve months: 12.6% against 8.51%. Textron Inc. has the higher net margin (6.30% vs 5.42%) and the higher return on invested capital (6.30% vs 6.27%). Both pay a dividend; Huntington Ingalls Industries, Inc. yields more (1.91% vs 0.09%). Across the 23 metrics below, Textron Inc. leads on 16 and Huntington Ingalls Industries, Inc. on 7.

Valuation

Metric HII TXT Aerospace & Defense median
P/E 15.57 15.37 28.48
P/S 0.85 0.95 2.95
P/B 2.08 1.81 2.68
Price to free cash flow 35.00 17.98 31.70
EV/EBITDA 11.81 11.69 16.85
EV/Sales 1.02 1.09 2.74
Earnings yield 6.42% 6.51% 0.89%
Free cash flow yield 2.86% 5.56% 0.00%

Profitability

Metric HII TXT Aerospace & Defense median
Gross margin 12.72% 17.67% 26.41%
Operating margin 6.27% 6.67% 3.69%
Net margin 5.42% 6.30% 2.74%
Free cash flow margin 2.42% 5.28% 0.00%
Return on equity 13.99% 12.47% 4.44%
Return on assets 5.80% 5.45% 1.90%
Return on invested capital 6.27% 6.30% 0.26%

Growth

Metric HII TXT Aerospace & Defense median
Revenue growth (TTM) 12.64% 8.51% 18.03%
EPS growth (last fiscal year) 10.24% 18.01% 24.80%
Revenue growth, 5-year CAGR 5.93% 4.90% 9.73%
Net income growth, 5-year CAGR (2.76%) 24.41% 0.00%

Health

Metric HII TXT Aerospace & Defense median
Debt to equity 0.49 0.47 0.20
Current ratio 1.26 1.80 2.85
Net debt to EBITDA 1.87 1.32 1.29

Dividend

Metric HII TXT Aerospace & Defense median
Dividend yield 1.91% 0.09% 0.91%
Payout ratio 0.30 0.01 0.30

Size

Metric HII TXT Aerospace & Defense median
Market cap 11.40b 14.44b 1.78b

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