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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 $79.9B against $65.7B — 1.2× the size. Transdigm Group Incorporated trades at the lower P/E: 36.1× against 39.3×. Howmet Aerospace Inc. grew revenue faster over the last twelve months: 22.0% against 16.7%. Howmet Aerospace Inc. has the higher net margin (21.1% vs 19.1%) and the higher return on invested capital (18.3% vs 14.3%). Only Howmet Aerospace Inc. pays a dividend (0.32%). Across the 22 metrics below, Howmet Aerospace Inc. leads on 11 and Transdigm Group Incorporated on 11.

Valuation

Metric HWM TDG Aerospace & Defense median
P/E 39.32 36.15 28.48
P/S 8.24 6.83 2.95
P/B 13.92 n/m 2.68
Price to free cash flow 37.19 35.49 31.70
EV/EBITDA 27.42 19.55 16.85
EV/Sales 8.61 9.83 2.74
Earnings yield 2.54% 2.77% 0.89%
Free cash flow yield 2.69% 2.82% 0.00%

Profitability

Metric HWM TDG Aerospace & Defense median
Gross margin 36.63% 59.56% 26.41%
Operating margin 28.05% 46.04% 3.69%
Net margin 21.10% 19.09% 2.74%
Free cash flow margin 22.16% 19.25% 0.00%
Return on equity 37.84% (25.83%) 4.44%
Return on assets 16.79% 7.73% 1.90%
Return on invested capital 18.33% 14.27% 0.26%

Growth

Metric HWM TDG Aerospace & Defense median
Revenue growth (TTM) 22.02% 16.66% 18.03%
EPS growth (last fiscal year) 32.03% 25.21% 24.80%
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 0.70 (3.34) 0.20
Current ratio 1.86 3.02 2.85
Net debt to EBITDA 0.99 5.85 1.29

Dividend

Metric HWM TDG Aerospace & Defense median
Dividend yield 0.32% 0.00% 0.91%
Payout ratio 0.13 0.00 0.30

Size

Metric HWM TDG Aerospace & Defense median
Market cap 79.89b 65.73b 1.78b

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