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

Hexcel Corporation and Loar Holdings Inc. are both Aerospace & Defense companies. Loar Holdings Inc. is the larger, with a market value of $6.8B against $6.1B — 1.1× the size. Hexcel Corporation trades at the lower P/E: 36.0× against 113×. Loar Holdings Inc. grew revenue faster over the last twelve months: 33.8% against 7.57%. Loar Holdings Inc. has the higher net margin (9.44% vs 8.50%) and the lower return on invested capital (4.51% vs 7.04%). 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 35.97 113.31 28.48
P/S 3.04 10.69 2.95
P/B 4.63 5.56 2.68
Price to free cash flow 29.24 57.29 31.70
EV/EBITDA 18.97 38.83 16.85
EV/Sales 3.47 11.93 2.74
Earnings yield 2.78% 0.88% 0.89%
Free cash flow yield 3.42% 1.75% 0.00%

Profitability

Metric HXL LOAR Aerospace & Defense median
Gross margin 25.23% 52.63% 26.41%
Operating margin 12.21% 22.86% 3.69%
Net margin 8.50% 9.44% 2.74%
Free cash flow margin 10.39% 18.65% 0.00%
Return on equity 11.86% 5.04% 4.44%
Return on assets 6.25% 3.09% 1.90%
Return on invested capital 7.04% 4.51% 0.26%

Growth

Metric HXL LOAR Aerospace & Defense median
Revenue growth (TTM) 7.57% 33.82% 18.03%
EPS growth (last fiscal year) (13.84%) 212.50% 24.80%
Revenue growth, 5-year CAGR 4.74% — 9.73%
Net income growth, 5-year CAGR 28.11% — 0.00%

Health

Metric HXL LOAR Aerospace & Defense median
Debt to equity 0.71 0.78 0.20
Current ratio 2.57 5.38 2.85
Net debt to EBITDA 3.15 4.01 1.29

Dividend

Metric HXL LOAR Aerospace & Defense median
Dividend yield 0.89% — 0.91%
Payout ratio 0.32 — 0.30

Size

Metric HXL LOAR Aerospace & Defense median
Market cap 6.10b 6.84b 1.78b

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