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 $253.9B against $91.7B — 2.8× the size. RTX Corporation trades at the lower P/E: 32.9× against 49.9×. 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 (2.71% vs 0.29%). 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 49.89 32.94 33.00
P/S 10.20 2.74 3.63
P/B 16.22 3.76 3.24
Price to free cash flow 46.10 23.29 34.01
EV/EBITDA 34.48 19.14 18.69
EV/Sales 10.58 3.05 3.94
Earnings yield 2.00% 3.04% 1.31%
Free cash flow yield 2.17% 4.29% 0.00%

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% 0.00%
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% —
Revenue growth, 5-year CAGR 9.43% 9.38% 9.62%
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 0.29% 2.71% 1.04%
Payout ratio 0.11 0.59 0.00

Size

Metric HWM RTX Aerospace & Defense median
Market cap 91.73b 253.92b 2.52b

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