Howmet Aerospace Inc. (HWM) vs Northrop Grumman Corporation (NOC)

Howmet Aerospace Inc. and Northrop Grumman Corporation are both Aerospace & Defense companies. Howmet Aerospace Inc. and Northrop Grumman Corporation are of similar size ($79.9B and $74.6B). Northrop Grumman Corporation trades at the lower P/E: 16.5× against 39.3×. Howmet Aerospace Inc. grew revenue faster over the last twelve months: 22.0% against 6.51%. Howmet Aerospace Inc. has the higher net margin (21.1% vs 10.4%) and the higher return on invested capital (18.3% vs 9.84%). Both pay a dividend; Northrop Grumman Corporation yields more (1.82% vs 0.32%). Across the 23 metrics below, Howmet Aerospace Inc. leads on 14 and Northrop Grumman Corporation on 9.

Valuation

Metric HWM NOC Aerospace & Defense median
P/E 39.32 16.52 28.48
P/S 8.24 1.71 2.95
P/B 13.92 3.99 2.68
Price to free cash flow 37.19 17.76 31.70
EV/EBITDA 27.42 13.87 16.85
EV/Sales 8.61 1.96 2.74
Earnings yield 2.54% 6.05% 0.89%
Free cash flow yield 2.69% 5.63% 0.00%

Profitability

Metric HWM NOC Aerospace & Defense median
Gross margin 36.63% 20.02% 26.41%
Operating margin 28.05% 10.61% 3.69%
Net margin 21.10% 10.37% 2.74%
Free cash flow margin 22.16% 9.64% 0.00%
Return on equity 37.84% 26.07% 4.44%
Return on assets 16.79% 8.88% 1.90%
Return on invested capital 18.33% 9.84% 0.26%

Growth

Metric HWM NOC Aerospace & Defense median
Revenue growth (TTM) 22.02% 6.51% 18.03%
EPS growth (last fiscal year) 32.03% 2.61% 24.80%
Revenue growth, 5-year CAGR 9.43% 2.66% 9.73%
Net income growth, 5-year CAGR 42.20% 5.57% 0.00%

Health

Metric HWM NOC Aerospace & Defense median
Debt to equity 0.70 0.77 0.20
Current ratio 1.86 1.23 2.85
Net debt to EBITDA 0.99 1.80 1.29

Dividend

Metric HWM NOC Aerospace & Defense median
Dividend yield 0.32% 1.82% 0.91%
Payout ratio 0.13 0.30 0.30

Size

Metric HWM NOC Aerospace & Defense median
Market cap 79.89b 74.62b 1.78b

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