AIR vs. HWM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AIR and HWM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
HWM’s market capitalization of 73.09 billion USD is significantly greater than AIR’s 2.58 billion USD, highlighting its more substantial market valuation.
With betas of 1.43 for AIR and 1.43 for HWM, both stocks show similar sensitivity to overall market movements.
| Symbol | AIR | HWM |
|---|---|---|
| Company Name | AAR Corp. | Howmet Aerospace Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Aerospace & Defense | Industrial - Machinery |
| CEO | John McClain Holmes III | John C. Plant FCA |
| Price | 71.46 USD | 181.06 USD |
| Market Cap | 2.58 billion USD | 73.09 billion USD |
| Beta | 1.43 | 1.43 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | November 1, 2016 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AIR and HWM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AIR
-1.04%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
AIR has a negative Return on Equity of -1.04%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
HWM
27.72%
Industrial - Machinery Industry
- Max
- 36.51%
- Q3
- 18.65%
- Median
- 12.08%
- Q1
- 4.75%
- Min
- -15.57%
In the upper quartile for the Industrial - Machinery industry, HWM’s Return on Equity of 27.72% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
AIR
-17.13%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
AIR has a negative Return on Invested Capital of -17.13%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
HWM
15.87%
Industrial - Machinery Industry
- Max
- 22.35%
- Q3
- 12.64%
- Median
- 9.33%
- Q1
- 5.32%
- Min
- -5.42%
In the upper quartile for the Industrial - Machinery industry, HWM’s Return on Invested Capital of 15.87% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
AIR
-0.46%
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
AIR has a negative Net Profit Margin of -0.46%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
HWM
16.64%
Industrial - Machinery Industry
- Max
- 28.85%
- Q3
- 15.25%
- Median
- 10.02%
- Q1
- 5.33%
- Min
- -8.75%
A Net Profit Margin of 16.64% places HWM in the upper quartile for the Industrial - Machinery industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AIR
5.84%
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
AIR’s Operating Profit Margin of 5.84% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.
HWM
23.58%
Industrial - Machinery Industry
- Max
- 28.19%
- Q3
- 19.04%
- Median
- 14.62%
- Q1
- 8.13%
- Min
- -5.76%
An Operating Profit Margin of 23.58% places HWM in the upper quartile for the Industrial - Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AIR | HWM |
|---|---|---|
| Return on Equity (TTM) | -1.04% | 27.72% |
| Return on Assets (TTM) | -0.43% | 11.66% |
| Return on Invested Capital (TTM) | -17.13% | 15.87% |
| Net Profit Margin (TTM) | -0.46% | 16.64% |
| Operating Profit Margin (TTM) | 5.84% | 23.58% |
| Gross Profit Margin (TTM) | 18.82% | 30.46% |
Financial Strength
Current Ratio
AIR
2.82
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
AIR’s Current Ratio of 2.82 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.
HWM
2.30
Industrial - Machinery Industry
- Max
- 4.18
- Q3
- 2.75
- Median
- 2.07
- Q1
- 1.46
- Min
- 0.46
HWM’s Current Ratio of 2.30 aligns with the median group of the Industrial - Machinery industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
AIR
0.92
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.73
- Median
- 0.51
- Q1
- 0.09
- Min
- 0.00
AIR’s leverage is in the upper quartile of the Aerospace & Defense industry, with a Debt-to-Equity Ratio of 0.92. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
HWM
0.73
Industrial - Machinery Industry
- Max
- 1.46
- Q3
- 0.73
- Median
- 0.48
- Q1
- 0.17
- Min
- 0.00
HWM’s Debt-to-Equity Ratio of 0.73 is typical for the Industrial - Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
AIR
2.06
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
AIR’s Interest Coverage Ratio of 2.06 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.
HWM
10.35
Industrial - Machinery Industry
- Max
- 28.91
- Q3
- 14.99
- Median
- 9.11
- Q1
- 3.95
- Min
- -11.30
HWM’s Interest Coverage Ratio of 10.35 is positioned comfortably within the norm for the Industrial - Machinery industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AIR | HWM |
|---|---|---|
| Current Ratio (TTM) | 2.82 | 2.30 |
| Quick Ratio (TTM) | 1.39 | 1.07 |
| Debt-to-Equity Ratio (TTM) | 0.92 | 0.73 |
| Debt-to-Asset Ratio (TTM) | 0.38 | 0.32 |
| Net Debt-to-EBITDA Ratio (TTM) | 7.43 | 1.49 |
| Interest Coverage Ratio (TTM) | 2.06 | 10.35 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AIR and HWM. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AIR
0.00%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AIR currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
HWM
0.20%
Industrial - Machinery Industry
- Max
- 4.40%
- Q3
- 1.47%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
HWM’s Dividend Yield of 0.20% is consistent with its peers in the Industrial - Machinery industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AIR
0.00%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AIR has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
HWM
10.35%
Industrial - Machinery Industry
- Max
- 78.48%
- Q3
- 36.22%
- Median
- 20.24%
- Q1
- 0.00%
- Min
- 0.00%
HWM’s Dividend Payout Ratio of 10.35% is within the typical range for the Industrial - Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AIR | HWM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.20% |
| Dividend Payout Ratio (TTM) | 0.00% | 10.35% |
Valuation
Price-to-Earnings Ratio
AIR
-204.01
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
AIR has a negative P/E Ratio of -204.01. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
HWM
58.38
Industrial - Machinery Industry
- Max
- 47.62
- Q3
- 34.41
- Median
- 27.36
- Q1
- 21.62
- Min
- 10.96
At 58.38, HWM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Industrial - Machinery industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
AIR
-12.58
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
AIR has a negative Forward PEG Ratio of -12.58. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
HWM
3.32
Industrial - Machinery Industry
- Max
- 6.15
- Q3
- 3.53
- Median
- 2.82
- Q1
- 1.71
- Min
- 0.09
The Forward PEG Ratio is often not a primary valuation metric in the Industrial - Machinery industry.
Price-to-Sales Ratio
AIR
0.96
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
In the lower quartile for the Aerospace & Defense industry, AIR’s P/S Ratio of 0.96 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
HWM
9.68
Industrial - Machinery Industry
- Max
- 8.37
- Q3
- 4.59
- Median
- 3.34
- Q1
- 1.83
- Min
- 0.32
With a P/S Ratio of 9.68, HWM trades at a valuation that eclipses even the highest in the Industrial - Machinery industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
AIR
2.14
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
AIR’s P/B Ratio of 2.14 is in the lower quartile for the Aerospace & Defense industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
HWM
15.30
Industrial - Machinery Industry
- Max
- 7.49
- Q3
- 5.01
- Median
- 3.41
- Q1
- 2.45
- Min
- 0.01
At 15.30, HWM’s P/B Ratio is at an extreme premium to the Industrial - Machinery industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AIR | HWM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -204.01 | 58.38 |
| Forward PEG Ratio (TTM) | -12.58 | 3.32 |
| Price-to-Sales Ratio (P/S, TTM) | 0.96 | 9.68 |
| Price-to-Book Ratio (P/B, TTM) | 2.14 | 15.30 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -430.00 | 71.94 |
| EV-to-EBITDA (TTM) | 26.48 | 38.46 |
| EV-to-Sales (TTM) | 1.34 | 10.07 |