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 $19.2B against $13.0B — 1.5× the size. Textron Inc. trades at the lower P/E: 14.5× against 35.7×. 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 (0.69% 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 14.45 35.71 33.00
P/S 0.87 4.68 3.63
P/B 1.65 7.94 3.24
Price to free cash flow 17.37 52.15 34.01
EV/EBITDA 10.87 26.42 18.69
EV/Sales 1.01 4.89 3.94
Earnings yield 6.92% 2.80% 1.31%
Free cash flow yield 5.76% 1.92% 0.00%

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% 0.00%
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% —
Revenue growth, 5-year CAGR 4.90% 7.41% 9.62%
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 0.09% 0.69% 1.04%
Payout ratio 0.02 0.25 0.00

Size

Metric TXT WWD Aerospace & Defense median
Market cap 13.00b 19.24b 2.52b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack