Hexcel Corporation (HXL) vs Kratos Defense & Security Solutions, Inc. (KTOS)

Hexcel Corporation and Kratos Defense & Security Solutions, Inc. are both Aerospace & Defense companies. Kratos Defense & Security Solutions, Inc. is the larger, with a market value of $7.7B against $6.2B — 1.2× the size. Hexcel Corporation trades at the lower P/E: 36.5× against 241×. Kratos Defense & Security Solutions, Inc. grew revenue faster over the last twelve months: 25.5% against 7.57%. Hexcel Corporation has the higher net margin (8.50% vs 2.03%) and the higher return on invested capital (7.04% vs 0.54%). Across the 21 metrics below, Hexcel Corporation leads on 14 and Kratos Defense & Security Solutions, Inc. on 7.

Valuation

Metric HXL KTOS Aerospace & Defense median
P/E 36.48 240.94 31.60
P/S 3.08 5.07 3.36
P/B 4.70 2.25 2.99
Price to free cash flow 29.65 n/m 33.23
EV/EBITDA 19.21 67.12 19.00
EV/Sales 3.51 4.22 3.37
Earnings yield 2.74% 0.42% 0.90%
Free cash flow yield 3.37% (1.67%) 0.00%

Profitability

Metric HXL KTOS Aerospace & Defense median
Gross margin 25.23% 23.00% 25.95%
Operating margin 12.21% 1.21% 1.21%
Net margin 8.50% 2.03% 2.11%
Free cash flow margin 10.39% (8.47%) 0.00%
Return on equity 11.86% 1.15% 2.67%
Return on assets 6.25% 0.93% 1.90%
Return on invested capital 7.04% 0.54% 0.25%

Growth

Metric HXL KTOS Aerospace & Defense median
Revenue growth (TTM) 7.57% 25.50% 18.25%
EPS growth (last fiscal year) (13.84%) 18.18% 24.80%
Revenue growth, 5-year CAGR 4.74% 12.49% 9.73%
Net income growth, 5-year CAGR 28.11% (22.68%) 0.00%

Health

Metric HXL KTOS Aerospace & Defense median
Debt to equity 0.71 0.04 0.18
Current ratio 2.57 5.54 2.85
Net debt to EBITDA 3.15 (5.44) 1.29

Dividend

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

Size

Metric HXL KTOS Aerospace & Defense median
Market cap 6.19b 7.69b 1.94b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack