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 $19.7B against $12.9B — 1.5× the size. Textron Inc. trades at the lower P/E: 14.3× against 35.5×. Woodward, Inc. grew revenue faster over the last twelve months: 22.4% against 8.80%. Woodward, Inc. has the higher net margin (13.2% vs 6.12%) and the higher return on invested capital (12.3% vs 6.25%). Both pay a dividend; Woodward, Inc. yields more (0.38% vs 0.11%). Across the 23 metrics below, Woodward, Inc. leads on 12 and Textron Inc. on 11.

Valuation

Metric TXT WWD Aerospace & Defense median
P/E 14.33 35.52 31.81
P/S 0.86 4.66 3.55
P/B 1.64 7.90 2.59
Price to free cash flow 17.22 51.87 31.99
EV/EBITDA 10.79 26.29 18.08
EV/Sales 1.00 4.87 3.37
Earnings yield 6.98% 2.82% 1.38%
Free cash flow yield 5.81% 1.93% 0.21%

Profitability

Metric TXT WWD Aerospace & Defense median
Gross margin 17.77% 29.47% 25.48%
Operating margin 6.71% 15.64% 4.54%
Net margin 6.12% 13.17% 2.22%
Free cash flow margin 5.00% 8.98% 1.43%
Return on equity 12.10% 22.34% 6.43%
Return on assets 5.32% 11.14% 2.70%
Return on invested capital 6.25% 12.27% 1.56%

Growth

Metric TXT WWD Aerospace & Defense median
Revenue growth (TTM) 8.80% 22.35% 18.43%
EPS growth (last fiscal year) 18.01% 19.63% 24.27%
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 0.24
Current ratio 1.86 1.65 2.72
Net debt to EBITDA 1.32 0.63 1.12

Dividend

Metric TXT WWD Aerospace & Defense median
Dividend yield 0.11% 0.38% 0.90%
Payout ratio 0.02 0.14 0.32

Size

Metric TXT WWD Aerospace & Defense median
Market cap 12.92b 19.68b 2.19b

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