Howmet Aerospace Inc. (HWM) vs Rocket Lab Corporation (RKLB)

Howmet Aerospace Inc. and Rocket Lab Corporation are both Aerospace & Defense companies. Howmet Aerospace Inc. is the larger, with a market value of $91.7B against $44.8B — 2.0× the size. Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; Howmet Aerospace Inc. trades at 49.9×. Rocket Lab Corporation grew revenue faster over the last twelve months: 52.5% against 18.1%. Howmet Aerospace Inc. has the higher net margin (20.5% vs −21.5%) and the higher return on invested capital (16.9% vs −11.5%). Across the 19 metrics below, Howmet Aerospace Inc. leads on 13 and Rocket Lab Corporation on 6.

Valuation

Metric HWM RKLB Aerospace & Defense median
P/E 49.89 n/m 33.00
P/S 10.20 60.54 3.63
P/B 16.22 13.33 3.24
Price to free cash flow 46.10 n/m 34.01
EV/EBITDA 34.48 n/m 18.69
EV/Sales 10.58 57.61 3.94
Earnings yield 2.00% (0.37%) 1.31%
Free cash flow yield 2.17% (0.79%) 0.00%

Profitability

Metric HWM RKLB Aerospace & Defense median
Gross margin 36.03% 37.26% 25.48%
Operating margin 27.37% (29.06%) 4.54%
Net margin 20.51% (21.51%) 2.22%
Free cash flow margin 22.12% (48.13%) 0.00%
Return on equity 34.89% (7.92%) 6.43%
Return on assets 15.39% (5.76%) 2.70%
Return on invested capital 16.91% (11.46%) 1.56%

Growth

Metric HWM RKLB Aerospace & Defense median
Revenue growth (TTM) 18.08% 52.53% 18.43%
EPS growth (last fiscal year) 32.03% 2.63% —
Revenue growth, 5-year CAGR 9.43% 76.47% 9.62%
Net income growth, 5-year CAGR 42.20% 0.00% 0.00%

Health

Metric HWM RKLB Aerospace & Defense median
Debt to equity 0.71 0.01 0.24
Current ratio 1.82 5.48 2.72
Net debt to EBITDA 0.99 4.66 1.12

Dividend

Metric HWM RKLB Aerospace & Defense median
Dividend yield 0.29% — 1.04%
Payout ratio 0.11 0.00 0.00

Size

Metric HWM RKLB Aerospace & Defense median
Market cap 91.73b 44.78b 2.52b

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