Hexcel Corporation (HXL) vs Karman Holdings Inc. (KRMN)

Hexcel Corporation and Karman Holdings Inc. are both Aerospace & Defense companies. Hexcel Corporation is the larger, with a market value of $6.2B against $5.2B — 1.2× the size. Hexcel Corporation trades at the lower P/E: 36.5× against 136×. Karman Holdings Inc. grew revenue faster over the last twelve months: 50.2% against 7.57%. Hexcel Corporation has the higher net margin (8.50% vs 6.31%) and the higher return on invested capital (7.04% vs 5.09%). Across the 19 metrics below, Hexcel Corporation leads on 14 and Karman Holdings Inc. on 5.

Valuation

Metric HXL KRMN Aerospace & Defense median
P/E 36.48 136.03 31.60
P/S 3.08 8.87 3.36
P/B 4.70 12.42 2.99
Price to free cash flow 29.65 n/m 33.23
EV/EBITDA 19.21 38.62 19.00
EV/Sales 3.51 10.22 3.37
Earnings yield 2.74% 0.74% 0.90%
Free cash flow yield 3.37% (0.52%) 0.00%

Profitability

Metric HXL KRMN Aerospace & Defense median
Gross margin 25.23% 41.67% 25.95%
Operating margin 12.21% 16.82% 1.21%
Net margin 8.50% 6.31% 2.11%
Free cash flow margin 10.39% (4.63%) 0.00%
Return on equity 11.86% 9.50% 2.67%
Return on assets 6.25% 3.10% 1.90%
Return on invested capital 7.04% 5.09% 0.25%

Growth

Metric HXL KRMN Aerospace & Defense median
Revenue growth (TTM) 7.57% 50.23% 18.25%
EPS growth (last fiscal year) (13.84%) 62.50% 24.80%
Revenue growth, 5-year CAGR 4.74% — 9.73%
Net income growth, 5-year CAGR 28.11% — 0.00%

Health

Metric HXL KRMN Aerospace & Defense median
Debt to equity 0.71 2.01 0.18
Current ratio 2.57 3.56 2.85
Net debt to EBITDA 3.15 4.60 1.29

Dividend

Metric HXL KRMN Aerospace & Defense median
Dividend yield 0.88% — 0.87%
Payout ratio 0.32 — 0.30

Size

Metric HXL KRMN Aerospace & Defense median
Market cap 6.19b 5.24b 1.94b

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