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 $133.1B against $79.9B — 1.7× the size. Lockheed Martin Corporation trades at the lower P/E: 20.4× against 39.3×. Howmet Aerospace Inc. grew revenue faster over the last twelve months: 22.0% against 7.86%. Howmet Aerospace Inc. has the higher net margin (21.1% vs 8.23%) and the lower return on invested capital (18.3% vs 23.7%). Both pay a dividend; Lockheed Martin Corporation yields more (2.39% vs 0.32%). 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 39.32 20.43 28.48
P/S 8.24 1.68 2.95
P/B 13.92 13.23 2.68
Price to free cash flow 37.19 15.89 31.70
EV/EBITDA 27.42 13.44 16.85
EV/Sales 8.61 1.87 2.74
Earnings yield 2.54% 4.89% 0.89%
Free cash flow yield 2.69% 6.30% 0.00%

Profitability

Metric HWM LMT Aerospace & Defense median
Gross margin 36.63% 11.73% 26.41%
Operating margin 28.05% 11.78% 3.69%
Net margin 21.10% 8.23% 2.74%
Free cash flow margin 22.16% 10.59% 0.00%
Return on equity 37.84% 80.19% 4.44%
Return on assets 16.79% 10.44% 1.90%
Return on invested capital 18.33% 23.67% 0.26%

Growth

Metric HWM LMT Aerospace & Defense median
Revenue growth (TTM) 22.02% 7.86% 18.03%
EPS growth (last fiscal year) 32.03% (3.68%) 24.80%
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 0.70 2.04 0.20
Current ratio 1.86 1.26 2.85
Net debt to EBITDA 0.99 1.87 1.29

Dividend

Metric HWM LMT Aerospace & Defense median
Dividend yield 0.32% 2.39% 0.91%
Payout ratio 0.13 0.49 0.30

Size

Metric HWM LMT Aerospace & Defense median
Market cap 79.89b 133.10b 1.78b

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