Hexcel Corporation (HXL) vs VSE Corporation (VSEC)

Hexcel Corporation and VSE Corporation are both Aerospace & Defense companies. Hexcel Corporation is the larger, with a market value of $6.8B against $4.5B — 1.5× the size. Hexcel Corporation trades at the lower P/E: 45.1× against 51.8×. VSE Corporation grew revenue faster over the last twelve months: 41.6% against 5.41%. Hexcel Corporation has the higher net margin (7.76% vs 5.53%) and the higher return on invested capital (6.47% vs 2.04%). Both pay a dividend; Hexcel Corporation yields more (0.79% vs 0.24%). Across the 22 metrics below, Hexcel Corporation leads on 15 and VSE Corporation on 7.

Valuation

Metric HXL VSEC Aerospace & Defense median
P/E 45.11 51.83 31.81
P/S 3.45 3.72 3.55
P/B 5.26 1.72 2.59
Price to free cash flow 26.72 n/m 31.99
EV/EBITDA 22.05 32.36 18.08
EV/Sales 3.91 4.36 3.37
Earnings yield 2.22% 1.93% 1.38%
Free cash flow yield 3.74% (0.02%) 0.21%

Profitability

Metric HXL VSEC Aerospace & Defense median
Gross margin 24.96% 15.62% 25.48%
Operating margin 11.50% 9.15% 4.54%
Net margin 7.76% 5.53% 2.22%
Free cash flow margin 12.92% (0.08%) 1.43%
Return on equity 10.76% 3.84% 6.43%
Return on assets 5.51% 2.50% 2.70%
Return on invested capital 6.47% 2.04% 1.56%

Growth

Metric HXL VSEC Aerospace & Defense median
Revenue growth (TTM) 5.41% 41.55% 18.43%
EPS growth (last fiscal year) (13.84%) 24.14% 24.27%
Revenue growth, 5-year CAGR 4.74% 10.95% 9.73%
Net income growth, 5-year CAGR 28.11% 0.00% 0.00%

Health

Metric HXL VSEC Aerospace & Defense median
Debt to equity 0.74 0.32 0.24
Current ratio 2.43 3.77 2.72
Net debt to EBITDA 3.15 1.71 1.12

Dividend

Metric HXL VSEC Aerospace & Defense median
Dividend yield 0.79% 0.24% 0.90%
Payout ratio 0.36 0.13 0.32

Size

Metric HXL VSEC Aerospace & Defense median
Market cap 6.80b 4.53b 2.19b

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