Howmet Aerospace Inc. (HWM) vs Lockheed Martin Corporation (LMT)

Howmet Aerospace Inc. and Lockheed Martin Corporation are both Aerospace & Defense companies. Lockheed Martin Corporation is the larger, with a market value of $122.9B against $87.6B — 1.4× the size. Lockheed Martin Corporation trades at the lower P/E: 20.3× against 47.4×. Howmet Aerospace Inc. grew revenue faster over the last twelve months: 18.1% against 7.20%. Howmet Aerospace Inc. has the higher net margin (20.5% vs 8.16%) and the lower return on invested capital (16.9% vs 22.4%). Both pay a dividend; Lockheed Martin Corporation yields more (2.50% vs 0.23%). Across the 23 metrics below, Howmet Aerospace Inc. leads on 12 and Lockheed Martin Corporation on 11.

Valuation

Metric HWM LMT Aerospace & Defense median
P/E 47.42 20.26 31.81
P/S 9.69 1.65 3.55
P/B 15.42 14.49 2.59
Price to free cash flow 43.82 14.56 31.99
EV/EBITDA 32.83 13.28 18.08
EV/Sales 10.08 1.87 3.37
Earnings yield 2.11% 4.94% 1.38%
Free cash flow yield 2.28% 6.87% 0.21%

Profitability

Metric HWM LMT Aerospace & Defense median
Gross margin 36.03% 11.80% 25.48%
Operating margin 27.37% 11.88% 4.54%
Net margin 20.51% 8.16% 2.22%
Free cash flow margin 22.12% 11.33% 1.43%
Return on equity 34.89% 89.16% 6.43%
Return on assets 15.39% 10.36% 2.70%
Return on invested capital 16.91% 22.42% 1.56%

Growth

Metric HWM LMT Aerospace & Defense median
Revenue growth (TTM) 18.08% 7.20% 18.43%
EPS growth (last fiscal year) 32.03% (3.68%) 24.27%
Revenue growth, 5-year CAGR 9.43% 2.79% 9.73%
Net income growth, 5-year CAGR 42.20% (5.99%) 0.00%

Health

Metric HWM LMT Aerospace & Defense median
Debt to equity 0.71 2.34 0.24
Current ratio 1.82 1.19 2.72
Net debt to EBITDA 0.99 1.87 1.12

Dividend

Metric HWM LMT Aerospace & Defense median
Dividend yield 0.23% 2.50% 0.90%
Payout ratio 0.11 0.51 0.32

Size

Metric HWM LMT Aerospace & Defense median
Market cap 87.62b 122.93b 2.19b

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