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 $7.8B against $6.4B — 1.2× the size. Hexcel Corporation trades at the lower P/E: 43.1× against 237×. Kratos Defense & Security Solutions, Inc. grew revenue faster over the last twelve months: 25.5% against 5.41%. Hexcel Corporation has the higher net margin (7.76% vs 2.03%) and the higher return on invested capital (6.47% 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 43.07 237.35 31.91
P/S 3.30 5.00 3.62
P/B 5.02 2.22 2.59
Price to free cash flow 25.51 n/m 31.60
EV/EBITDA 21.17 65.92 17.80
EV/Sales 3.75 4.14 3.56
Earnings yield 2.32% 0.42% 1.33%
Free cash flow yield 3.92% (1.69%) 0.18%

Profitability

Metric HXL KTOS Aerospace & Defense median
Gross margin 24.96% 23.00% 25.48%
Operating margin 11.50% 1.21% 4.54%
Net margin 7.76% 2.03% 2.22%
Free cash flow margin 12.92% (8.47%) 0.00%
Return on equity 10.76% 1.15% 6.03%
Return on assets 5.51% 0.93% 2.70%
Return on invested capital 6.47% 0.54% 1.56%

Growth

Metric HXL KTOS Aerospace & Defense median
Revenue growth (TTM) 5.41% 25.50% 18.43%
EPS growth (last fiscal year) (13.84%) 18.18% 24.27%
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 0.74 0.04 0.24
Current ratio 2.43 5.54 2.72
Net debt to EBITDA 3.15 (5.44) 1.12

Dividend

Metric HXL KTOS Aerospace & Defense median
Dividend yield 0.82% — 0.92%
Payout ratio 0.36 — 0.33

Size

Metric HXL KTOS Aerospace & Defense median
Market cap 6.42b 7.81b 2.23b

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