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

Howmet Aerospace Inc. and Northrop Grumman Corporation are both Aerospace & Defense companies. Howmet Aerospace Inc. is the larger, with a market value of $91.7B against $72.4B — 1.3× the size. Northrop Grumman Corporation trades at the lower P/E: 16.2× against 49.9×. Howmet Aerospace Inc. grew revenue faster over the last twelve months: 18.1% against 5.90%. Howmet Aerospace Inc. has the higher net margin (20.5% vs 10.5%) and the higher return on invested capital (16.9% vs 9.58%). Both pay a dividend; Northrop Grumman Corporation yields more (1.73% vs 0.29%). 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 49.89 16.19 33.00
P/S 10.20 1.69 3.63
P/B 16.22 4.06 3.24
Price to free cash flow 46.10 19.90 34.01
EV/EBITDA 34.48 13.83 18.69
EV/Sales 10.58 1.97 3.94
Earnings yield 2.00% 6.18% 1.31%
Free cash flow yield 2.17% 5.03% 0.00%

Profitability

Metric HWM NOC Aerospace & Defense median
Gross margin 36.03% 20.06% 25.48%
Operating margin 27.37% 10.72% 4.54%
Net margin 20.51% 10.48% 2.22%
Free cash flow margin 22.12% 8.50% 0.00%
Return on equity 34.89% 26.96% 6.43%
Return on assets 15.39% 8.97% 2.70%
Return on invested capital 16.91% 9.58% 1.56%

Growth

Metric HWM NOC Aerospace & Defense median
Revenue growth (TTM) 18.08% 5.90% 18.43%
EPS growth (last fiscal year) 32.03% 2.61% —
Revenue growth, 5-year CAGR 9.43% 2.66% 9.62%
Net income growth, 5-year CAGR 42.20% 5.57% 0.00%

Health

Metric HWM NOC Aerospace & Defense median
Debt to equity 0.71 0.81 0.24
Current ratio 1.82 1.17 2.72
Net debt to EBITDA 0.99 1.80 1.12

Dividend

Metric HWM NOC Aerospace & Defense median
Dividend yield 0.29% 1.73% 1.04%
Payout ratio 0.11 0.23 0.00

Size

Metric HWM NOC Aerospace & Defense median
Market cap 91.73b 72.35b 2.52b

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