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 $6.1B against $4.6B — 1.3× the size. Hexcel Corporation trades at the lower P/E: 36.0× against 60.0×. VSE Corporation grew revenue faster over the last twelve months: 41.6% against 7.57%. Hexcel Corporation has the higher net margin (8.50% vs 5.53%) and the higher return on invested capital (7.04% vs 2.04%). Both pay a dividend; Hexcel Corporation yields more (0.89% vs 0.24%). Across the 22 metrics below, Hexcel Corporation leads on 16 and VSE Corporation on 6.

Valuation

Metric HXL VSEC Aerospace & Defense median
P/E 35.97 59.96 28.48
P/S 3.04 3.78 2.95
P/B 4.63 1.75 2.68
Price to free cash flow 29.24 n/m 31.70
EV/EBITDA 18.97 32.83 16.85
EV/Sales 3.47 4.43 2.74
Earnings yield 2.78% 1.67% 0.89%
Free cash flow yield 3.42% (0.02%) 0.00%

Profitability

Metric HXL VSEC Aerospace & Defense median
Gross margin 25.23% 15.62% 26.41%
Operating margin 12.21% 9.15% 3.69%
Net margin 8.50% 5.53% 2.74%
Free cash flow margin 10.39% (0.08%) 0.00%
Return on equity 11.86% 3.84% 4.44%
Return on assets 6.25% 2.50% 1.90%
Return on invested capital 7.04% 2.04% 0.26%

Growth

Metric HXL VSEC Aerospace & Defense median
Revenue growth (TTM) 7.57% 41.55% 18.03%
EPS growth (last fiscal year) (13.84%) (35.29%) 24.80%
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 0.71 0.32 0.20
Current ratio 2.57 3.77 2.85
Net debt to EBITDA 3.15 1.71 1.29

Dividend

Metric HXL VSEC Aerospace & Defense median
Dividend yield 0.89% 0.24% 0.91%
Payout ratio 0.32 0.15 0.30

Size

Metric HXL VSEC Aerospace & Defense median
Market cap 6.10b 4.62b 1.78b

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