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

Hexcel Corporation and Loar Holdings Inc. are both Aerospace & Defense companies. Hexcel Corporation is the larger, with a market value of $6.8B against $5.9B — 1.2× the size. Hexcel Corporation trades at the lower P/E: 45.1× against 86.4×. 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 12 and Loar Holdings Inc. on 8.

Valuation

Metric HXL LOAR Aerospace & Defense median
P/E 45.11 86.40 31.81
P/S 3.45 9.94 3.55
P/B 5.26 4.86 2.59
Price to free cash flow 26.72 54.94 31.99
EV/EBITDA 22.05 34.08 18.08
EV/Sales 3.91 11.35 3.37
Earnings yield 2.22% 1.16% 1.38%
Free cash flow yield 3.74% 1.82% 0.21%

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% 1.43%
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% 24.27%
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 0.74 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 0.79% — 0.90%
Payout ratio 0.36 — 0.32

Size

Metric HXL LOAR Aerospace & Defense median
Market cap 6.80b 5.88b 2.19b

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