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 $120.7B against $91.7B — 1.3× the size. Lockheed Martin Corporation trades at the lower P/E: 19.1× against 49.9×. 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 (2.99% vs 0.29%). 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 49.89 19.07 33.00
P/S 10.20 1.55 3.63
P/B 16.22 13.64 3.24
Price to free cash flow 46.10 13.70 34.01
EV/EBITDA 34.48 12.59 18.69
EV/Sales 10.58 1.77 3.94
Earnings yield 2.00% 5.24% 1.31%
Free cash flow yield 2.17% 7.30% 0.00%

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% 0.00%
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%) —
Revenue growth, 5-year CAGR 9.43% 2.79% 9.62%
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 0.29% 2.99% 1.04%
Payout ratio 0.11 0.43 0.00

Size

Metric HWM LMT Aerospace & Defense median
Market cap 91.73b 120.73b 2.52b

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