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Howmet Aerospace Inc. (HWM) vs Transdigm Group Incorporated (TDG)

Howmet Aerospace Inc. and Transdigm Group Incorporated are both Aerospace & Defense companies. Howmet Aerospace Inc. is the larger, with a market value of $87.6B against $62.7B — 1.4× the size. Transdigm Group Incorporated trades at the lower P/E: 34.6× against 47.4×. Howmet Aerospace Inc. grew revenue faster over the last twelve months: 18.1% against 16.7%. Howmet Aerospace Inc. has the higher net margin (20.5% vs 19.1%) and the higher return on invested capital (16.9% vs 14.3%). Only Howmet Aerospace Inc. pays a dividend (0.23%). Across the 22 metrics below, Transdigm Group Incorporated leads on 12 and Howmet Aerospace Inc. on 10.

Valuation

Metric HWM TDG Aerospace & Defense median
P/E 47.42 34.57 31.81
P/S 9.69 6.53 3.55
P/B 15.42 n/m 2.59
Price to free cash flow 43.82 33.94 31.99
EV/EBITDA 32.83 18.96 18.08
EV/Sales 10.08 9.53 3.37
Earnings yield 2.11% 2.89% 1.38%
Free cash flow yield 2.28% 2.95% 0.21%

Profitability

Metric HWM TDG Aerospace & Defense median
Gross margin 36.03% 59.56% 25.48%
Operating margin 27.37% 46.04% 4.54%
Net margin 20.51% 19.09% 2.22%
Free cash flow margin 22.12% 19.25% 1.43%
Return on equity 34.89% (25.83%) 6.43%
Return on assets 15.39% 7.73% 2.70%
Return on invested capital 16.91% 14.27% 1.56%

Growth

Metric HWM TDG Aerospace & Defense median
Revenue growth (TTM) 18.08% 16.66% 18.43%
EPS growth (last fiscal year) 32.03% 25.21% 24.27%
Revenue growth, 5-year CAGR 9.43% 11.59% 9.73%
Net income growth, 5-year CAGR 42.20% 29.42% 0.00%

Health

Metric HWM TDG Aerospace & Defense median
Debt to equity 0.71 (3.34) 0.24
Current ratio 1.82 3.02 2.72
Net debt to EBITDA 0.99 5.85 1.12

Dividend

Metric HWM TDG Aerospace & Defense median
Dividend yield 0.23% 0.00% 0.90%
Payout ratio 0.11 0.00 0.32

Size

Metric HWM TDG Aerospace & Defense median
Market cap 87.62b 62.70b 2.19b

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