Howmet Aerospace Inc. (HWM) vs RTX Corporation (RTX)

Howmet Aerospace Inc. and RTX Corporation are both Aerospace & Defense companies. RTX Corporation is the larger, with a market value of $252.0B against $87.6B — 2.9× the size. RTX Corporation trades at the lower P/E: 33.7× against 47.4×. Howmet Aerospace Inc. grew revenue faster over the last twelve months: 18.1% against 11.8%. Howmet Aerospace Inc. has the higher net margin (20.5% vs 8.28%) and the higher return on invested capital (16.9% vs 6.74%). Both pay a dividend; RTX Corporation yields more (1.45% vs 0.23%). Across the 23 metrics below, Howmet Aerospace Inc. leads on 12 and RTX Corporation on 11.

Valuation

Metric HWM RTX Aerospace & Defense median
P/E 47.42 33.73 31.81
P/S 9.69 2.80 3.55
P/B 15.42 3.85 2.59
Price to free cash flow 43.82 23.84 31.99
EV/EBITDA 32.83 19.55 18.08
EV/Sales 10.08 3.11 3.37
Earnings yield 2.11% 2.97% 1.38%
Free cash flow yield 2.28% 4.19% 0.21%

Profitability

Metric HWM RTX Aerospace & Defense median
Gross margin 36.03% 20.35% 25.48%
Operating margin 27.37% 11.21% 4.54%
Net margin 20.51% 8.28% 2.22%
Free cash flow margin 22.12% 11.75% 1.43%
Return on equity 34.89% 11.70% 6.43%
Return on assets 15.39% 4.54% 2.70%
Return on invested capital 16.91% 6.74% 1.56%

Growth

Metric HWM RTX Aerospace & Defense median
Revenue growth (TTM) 18.08% 11.84% 18.43%
EPS growth (last fiscal year) 32.03% 39.72% 24.27%
Revenue growth, 5-year CAGR 9.43% 9.38% 9.73%
Net income growth, 5-year CAGR 42.20% 0.00% 0.00%

Health

Metric HWM RTX Aerospace & Defense median
Debt to equity 0.71 0.55 0.24
Current ratio 1.82 1.01 2.72
Net debt to EBITDA 0.99 2.23 1.12

Dividend

Metric HWM RTX Aerospace & Defense median
Dividend yield 0.23% 1.45% 0.90%
Payout ratio 0.11 0.50 0.32

Size

Metric HWM RTX Aerospace & Defense median
Market cap 87.62b 251.96b 2.19b

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