Hexcel Corporation (HXL) vs MDA Space Ltd. (MDA)

Hexcel Corporation and MDA Space Ltd. are both Aerospace & Defense companies. Hexcel Corporation is the larger, with a market value of $6.1B against $4.4B — 1.4× the size. Hexcel Corporation trades at the lower P/E: 35.8× against 48.3×. Hexcel Corporation has the higher net margin (8.50% vs 5.68%) and the higher return on invested capital (7.04% vs 5.05%). Across the 18 metrics below, Hexcel Corporation leads on 10 and MDA Space Ltd. on 8.

Valuation

Metric HXL MDA Aerospace & Defense median
P/E 35.80 48.33 29.42
P/S 3.03 2.92 3.05
P/B 4.61 2.89 2.91
Price to free cash flow 29.11 n/m 29.52
EV/EBITDA 18.89 17.00 17.23
EV/Sales 3.45 2.89 3.25
Earnings yield 2.79% 2.07% 0.95%
Free cash flow yield 3.44% (4.43%) 0.00%

Profitability

Metric HXL MDA Aerospace & Defense median
Gross margin 25.23% 25.43% 26.41%
Operating margin 12.21% 7.99% 3.69%
Net margin 8.50% 5.68% 2.74%
Free cash flow margin 10.39% (12.91%) 0.73%
Return on equity 11.86% 6.70% 5.39%
Return on assets 6.25% 3.07% 2.18%
Return on invested capital 7.04% 5.05% 0.64%

Growth

Metric HXL MDA Aerospace & Defense median
Revenue growth (TTM) 7.57% — 18.03%
EPS growth (last fiscal year) (13.84%) 30.24% 24.80%
Revenue growth, 5-year CAGR 4.74% — 9.73%
Net income growth, 5-year CAGR 28.11% — 0.00%

Health

Metric HXL MDA Aerospace & Defense median
Debt to equity 0.71 0.19 0.18
Current ratio 2.57 0.75 2.85
Net debt to EBITDA 3.15 0.84 1.29

Dividend

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

Size

Metric HXL MDA Aerospace & Defense median
Market cap 6.10b 4.35b 1.52b

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