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 $6.4B against $5.1B — 1.3× the size. Hexcel Corporation trades at the lower P/E: 42.9× against 57.6×. 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 (0.82% vs 0.59%). Across the 22 metrics below, Hexcel Corporation leads on 15 and VSE Corporation on 7.

Valuation

Metric HXL VSEC Aerospace & Defense median
P/E 42.88 57.59 33.00
P/S 3.28 4.13 3.63
P/B 5.00 1.91 3.24
Price to free cash flow 25.40 n/m 34.01
EV/EBITDA 21.09 35.43 18.69
EV/Sales 3.74 4.78 3.94
Earnings yield 2.33% 1.74% 1.31%
Free cash flow yield 3.94% (0.02%) 0.00%

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%) 0.00%
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% —
Revenue growth, 5-year CAGR 4.74% 10.95% 9.62%
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 0.82% 0.59% 1.04%
Payout ratio 0.26 0.15 0.00

Size

Metric HXL VSEC Aerospace & Defense median
Market cap 6.40b 5.06b 2.52b

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