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 $258.9B against $79.9B — 3.2× the size. RTX Corporation trades at the lower P/E: 30.9× against 39.3×. Howmet Aerospace Inc. grew revenue faster over the last twelve months: 22.0% against 11.6%. Howmet Aerospace Inc. has the higher net margin (21.1% vs 8.75%) and the higher return on invested capital (18.3% vs 7.12%). Both pay a dividend; RTX Corporation yields more (1.47% vs 0.32%). 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 39.32 30.88 28.48
P/S 8.24 2.71 2.95
P/B 13.92 3.67 2.68
Price to free cash flow 37.19 28.50 31.70
EV/EBITDA 27.42 18.39 16.85
EV/Sales 8.61 3.00 2.74
Earnings yield 2.54% 3.24% 0.89%
Free cash flow yield 2.69% 3.51% 0.00%

Profitability

Metric HWM RTX Aerospace & Defense median
Gross margin 36.63% 21.10% 26.41%
Operating margin 28.05% 11.77% 3.69%
Net margin 21.10% 8.75% 2.74%
Free cash flow margin 22.16% 9.51% 0.00%
Return on equity 37.84% 12.24% 4.44%
Return on assets 16.79% 4.87% 1.90%
Return on invested capital 18.33% 7.12% 0.26%

Growth

Metric HWM RTX Aerospace & Defense median
Revenue growth (TTM) 22.02% 11.63% 18.03%
EPS growth (last fiscal year) 32.03% 39.72% 24.80%
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 0.70 0.53 0.20
Current ratio 1.86 1.05 2.85
Net debt to EBITDA 0.99 2.23 1.29

Dividend

Metric HWM RTX Aerospace & Defense median
Dividend yield 0.32% 1.47% 0.91%
Payout ratio 0.13 0.46 0.30

Size

Metric HWM RTX Aerospace & Defense median
Market cap 79.89b 258.93b 1.78b

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