Hexcel Corporation (HXL) vs Loar Holdings Inc. (LOAR)

Hexcel Corporation and Loar Holdings Inc. are both Aerospace & Defense companies. Hexcel Corporation and Loar Holdings Inc. are of similar size ($6.4B and $6.1B). Hexcel Corporation trades at the lower P/E: 42.9× against 90.3×. Loar Holdings Inc. grew revenue faster over the last twelve months: 29.8% against 5.41%. Loar Holdings Inc. has the higher net margin (11.6% vs 7.76%) and the lower return on invested capital (3.95% vs 6.47%). Across the 20 metrics below, Hexcel Corporation leads on 13 and Loar Holdings Inc. on 7.

Valuation

Metric HXL LOAR Aerospace & Defense median
P/E 42.88 90.33 33.00
P/S 3.28 10.39 3.63
P/B 5.00 5.08 3.24
Price to free cash flow 25.40 57.44 34.01
EV/EBITDA 21.09 35.43 18.69
EV/Sales 3.74 11.81 3.94
Earnings yield 2.33% 1.11% 1.31%
Free cash flow yield 3.94% 1.74% 0.00%

Profitability

Metric HXL LOAR Aerospace & Defense median
Gross margin 24.96% 52.18% 25.48%
Operating margin 11.50% 21.86% 4.54%
Net margin 7.76% 11.60% 2.22%
Free cash flow margin 12.92% 18.09% 0.00%
Return on equity 10.76% 5.84% 6.43%
Return on assets 5.51% 3.56% 2.70%
Return on invested capital 6.47% 3.95% 1.56%

Growth

Metric HXL LOAR Aerospace & Defense median
Revenue growth (TTM) 5.41% 29.76% 18.43%
EPS growth (last fiscal year) (13.84%) 212.50% —
Revenue growth, 5-year CAGR 4.74% — 9.62%
Net income growth, 5-year CAGR 28.11% — 0.00%

Health

Metric HXL LOAR Aerospace & Defense median
Debt to equity 0.74 0.79 0.24
Current ratio 2.43 4.91 2.72
Net debt to EBITDA 3.15 4.01 1.12

Dividend

Metric HXL LOAR Aerospace & Defense median
Dividend yield 0.82% — 1.04%
Payout ratio 0.26 — 0.00

Size

Metric HXL LOAR Aerospace & Defense median
Market cap 6.40b 6.13b 2.52b

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