Textron Inc. (TXT) vs Woodward, Inc. (WWD)

Textron Inc. and Woodward, Inc. are both Aerospace & Defense companies. Woodward, Inc. is the larger, with a market value of $18.1B against $14.4B — 1.3× the size. Textron Inc. trades at the lower P/E: 15.4× against 33.2×. Woodward, Inc. grew revenue faster over the last twelve months: 22.4% against 8.51%. Woodward, Inc. has the higher net margin (13.2% vs 6.30%) and the higher return on invested capital (12.3% vs 6.30%). Both pay a dividend; Woodward, Inc. yields more (0.40% vs 0.09%). Across the 23 metrics below, Woodward, Inc. leads on 12 and Textron Inc. on 11.

Valuation

Metric TXT WWD Aerospace & Defense median
P/E 15.37 33.22 28.48
P/S 0.95 4.36 2.95
P/B 1.81 7.38 2.68
Price to free cash flow 17.98 48.51 31.70
EV/EBITDA 11.69 24.66 16.85
EV/Sales 1.09 4.56 2.74
Earnings yield 6.51% 3.01% 0.89%
Free cash flow yield 5.56% 2.06% 0.00%

Profitability

Metric TXT WWD Aerospace & Defense median
Gross margin 17.67% 29.47% 26.41%
Operating margin 6.67% 15.64% 3.69%
Net margin 6.30% 13.17% 2.74%
Free cash flow margin 5.28% 8.98% 0.00%
Return on equity 12.47% 22.34% 4.44%
Return on assets 5.45% 11.14% 1.90%
Return on invested capital 6.30% 12.27% 0.26%

Growth

Metric TXT WWD Aerospace & Defense median
Revenue growth (TTM) 8.51% 22.35% 18.03%
EPS growth (last fiscal year) 18.01% 19.63% 24.80%
Revenue growth, 5-year CAGR 4.90% 7.41% 9.73%
Net income growth, 5-year CAGR 24.41% 12.96% 0.00%

Health

Metric TXT WWD Aerospace & Defense median
Debt to equity 0.47 0.54 0.20
Current ratio 1.80 1.65 2.85
Net debt to EBITDA 1.32 0.63 1.29

Dividend

Metric TXT WWD Aerospace & Defense median
Dividend yield 0.09% 0.40% 0.91%
Payout ratio 0.01 0.14 0.30

Size

Metric TXT WWD Aerospace & Defense median
Market cap 14.44b 18.12b 1.78b

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