Huntington Ingalls Industries, Inc. (HII) vs Woodward, Inc. (WWD)

Huntington Ingalls Industries, Inc. and Woodward, Inc. are both Aerospace & Defense companies. Woodward, Inc. is the larger, with a market value of $19.2B against $10.5B — 1.8× the size. Huntington Ingalls Industries, Inc. trades at the lower P/E: 15.7× against 35.7×. Woodward, Inc. grew revenue faster over the last twelve months: 22.4% against 14.0%. Woodward, Inc. has the higher net margin (13.2% vs 5.01%) and the higher return on invested capital (12.3% vs 5.45%). Both pay a dividend; Huntington Ingalls Industries, Inc. yields more (1.97% vs 0.69%). Across the 22 metrics below, Woodward, Inc. leads on 14 and Huntington Ingalls Industries, Inc. on 8.

Valuation

Metric HII WWD Aerospace & Defense median
P/E 15.72 35.71 33.00
P/S 0.79 4.68 3.63
P/B 1.96 7.94 3.24
Price to free cash flow n/m 52.15 34.01
EV/EBITDA 12.25 26.42 18.69
EV/Sales 1.00 4.89 3.94
Earnings yield 6.36% 2.80% 1.31%
Free cash flow yield (0.82%) 1.92% 0.00%

Profitability

Metric HII WWD Aerospace & Defense median
Gross margin 12.40% 29.47% 25.48%
Operating margin 5.68% 15.64% 4.54%
Net margin 5.01% 13.17% 2.22%
Free cash flow margin (0.64%) 8.98% 0.00%
Return on equity 12.97% 22.34% 6.43%
Return on assets 5.33% 11.14% 2.70%
Return on invested capital 5.45% 12.27% 1.56%

Growth

Metric HII WWD Aerospace & Defense median
Revenue growth (TTM) 13.97% 22.35% 18.43%
EPS growth (last fiscal year) 10.24% 19.63% —
Revenue growth, 5-year CAGR 5.93% 7.41% 9.62%
Net income growth, 5-year CAGR (2.76%) 12.96% 0.00%

Health

Metric HII WWD Aerospace & Defense median
Debt to equity 0.51 0.54 0.24
Current ratio 1.23 1.65 2.72
Net debt to EBITDA 1.87 0.63 1.12

Dividend

Metric HII WWD Aerospace & Defense median
Dividend yield 1.97% 0.69% 1.04%
Payout ratio 0.38 0.25 0.00

Size

Metric HII WWD Aerospace & Defense median
Market cap 10.50b 19.24b 2.52b

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