Howmet Aerospace Inc. (HWM) vs L3Harris Technologies Inc (LHX)

Howmet Aerospace Inc. and L3Harris Technologies Inc are both Aerospace & Defense companies. Howmet Aerospace Inc. is the larger, with a market value of $79.9B against $48.1B — 1.7× the size. L3Harris Technologies Inc trades at the lower P/E: 23.8× against 39.3×. Howmet Aerospace Inc. grew revenue faster over the last twelve months: 22.0% against 7.33%. Howmet Aerospace Inc. has the higher net margin (21.1% vs 8.62%) and the higher return on invested capital (18.3% vs 5.69%). Both pay a dividend; L3Harris Technologies Inc yields more (1.91% vs 0.32%). Across the 23 metrics below, Howmet Aerospace Inc. leads on 13 and L3Harris Technologies Inc on 10.

Valuation

Metric HWM LHX Aerospace & Defense median
P/E 39.32 23.79 28.48
P/S 8.24 2.07 2.95
P/B 13.92 2.38 2.68
Price to free cash flow 37.19 13.20 31.70
EV/EBITDA 27.42 14.77 16.85
EV/Sales 8.61 2.41 2.74
Earnings yield 2.54% 4.20% 0.89%
Free cash flow yield 2.69% 7.58% 0.00%

Profitability

Metric HWM LHX Aerospace & Defense median
Gross margin 36.63% 25.55% 26.41%
Operating margin 28.05% 11.01% 3.69%
Net margin 21.10% 8.62% 2.74%
Free cash flow margin 22.16% 15.65% 0.00%
Return on equity 37.84% 10.11% 4.44%
Return on assets 16.79% 4.74% 1.90%
Return on invested capital 18.33% 5.69% 0.26%

Growth

Metric HWM LHX Aerospace & Defense median
Revenue growth (TTM) 22.02% 7.33% 18.03%
EPS growth (last fiscal year) 32.03% 8.39% 24.80%
Revenue growth, 5-year CAGR 9.43% 3.74% 9.73%
Net income growth, 5-year CAGR 42.20% 7.49% 0.00%

Health

Metric HWM LHX Aerospace & Defense median
Debt to equity 0.70 0.54 0.20
Current ratio 1.86 1.20 2.85
Net debt to EBITDA 0.99 2.68 1.29

Dividend

Metric HWM LHX Aerospace & Defense median
Dividend yield 0.32% 1.91% 0.91%
Payout ratio 0.13 0.46 0.30

Size

Metric HWM LHX Aerospace & Defense median
Market cap 79.89b 48.06b 1.78b

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