HWM vs. LECO: Howmet Aerospace vs. Lincoln Electric Stock Comparison
How do Howmet Aerospace (HWM) and Lincoln Electric (LECO) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Howmet Aerospace (HWM) and Lincoln Electric (LECO) both fall under the Capital Goods industry group, but HWM is classified in Aerospace & Defense while LECO is classified in Machinery.
| Profile Item | HWM | LECO |
|---|---|---|
| Name | Howmet Aerospace Inc. | Lincoln Electric Holdings, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Capital Goods | Capital Goods |
| GICS Industry | Aerospace & Defense | Machinery |
| GICS Sub-Industry | Aerospace & Defense | Industrial Machinery & Supplies & Components |
| Market Capitalization | 81.84 billion USD | 14.91 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | November 1, 2016 | April 7, 1994 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | HWM | LECO |
|---|---|---|
| Total Return (1Y) | 5.06% | 27.30% |
| Total Return (3Y, Annualized) | 64.83% | 17.31% |
| Total Return (5Y, Annualized) | 46.04% | 16.33% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | HWM | LECO |
|---|---|---|
| Volatility (1Y, Annualized) | 37.60% | 31.13% |
| Beta (5Y) | 1.27 | 1.17 |
| Max Drawdown (5Y) | -36.47% | -34.29% |
| Avg. Volume (3M) | 3.47M | 409.99K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | HWM | LECO |
|---|---|---|
| Sharpe Ratio (1Y) | 0.02 | 0.74 |
| Sortino Ratio (1Y) | 0.03 | 1.11 |
Profitability
ROE (TTM)
Both Howmet Aerospace (HWM) at 37.65% and Lincoln Electric (LECO) at 38.75% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.
HWM
Capital Goods industry group
37.65%
- Max
- 40.55%
- HWM
- 37.65%
- Q3
- 19.29%
- Median
- 12.12%
- Q1
- 4.08%
- Min
- -17.12%
LECO
Capital Goods industry group
38.75%
- Max
- 40.55%
- LECO
- 38.75%
- Q3
- 19.29%
- Median
- 12.12%
- Q1
- 4.08%
- Min
- -17.12%
Net Margin (TTM)
For every dollar of sales, both Howmet Aerospace (HWM) at 21.10% and Lincoln Electric (LECO) at 12.40% retain more as net profit than most peers, landing in the top net margin quartile of their industries.
HWM
Capital Goods industry group
21.10%
- Max
- 27.47%
- HWM
- 21.10%
- Q3
- 12.10%
- Median
- 6.30%
- Q1
- 1.40%
- Min
- -12.89%
LECO
Capital Goods industry group
12.40%
- Max
- 27.47%
- LECO
- 12.40%
- Q3
- 12.10%
- Median
- 6.30%
- Q1
- 1.40%
- Min
- -12.89%
Operating Margin (TTM)
Howmet Aerospace (HWM) at 28.78% operates in the top operating margin quartile, ahead of Lincoln Electric (LECO) at 18.29%, which runs around its industry’s norm.
HWM
Capital Goods industry group
28.78%
- Max
- 36.60%
- HWM
- 28.78%
- Q3
- 18.33%
- Median
- 11.12%
- Q1
- 5.14%
- Min
- -12.63%
LECO
Capital Goods industry group
18.29%
- Max
- 36.60%
- Q3
- 18.33%
- LECO
- 18.29%
- Median
- 11.12%
- Q1
- 5.14%
- Min
- -12.63%
Profitability Metrics
| Metric | HWM | LECO |
|---|---|---|
| ROE (TTM) | 37.65% | 38.75% |
| ROA (TTM) | 13.97% | 13.32% |
| Net Margin (TTM) | 21.10% | 12.40% |
| Operating Margin (TTM) | 28.78% | 18.29% |
| Gross Margin (TTM) | 36.63% | 35.54% |
Growth
Revenue Growth
Both Howmet Aerospace (HWM) at 11.06% and Lincoln Electric (LECO) at 5.60% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Howmet Aerospace (HWM) at 32.03% sits in the top EPS growth quartile, while Lincoln Electric (LECO) at 14.36% is closer to the peer norm — faster per-share earnings growth for HWM.
Growth Metrics
| Metric | HWM | LECO |
|---|---|---|
| Revenue Growth (YoY) | 11.06% | 5.60% |
| Revenue Growth (3Y CAGR) | 13.37% | 4.02% |
| EPS Growth (YoY) | 32.03% | 14.36% |
| EPS Growth (3Y CAGR) | 49.51% | 5.05% |
Financial Strength
Current Ratio (MRQ)
Both Howmet Aerospace (HWM) at 1.86 and Lincoln Electric (LECO) at 1.91 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.
HWM
Capital Goods industry group
1.86
- Max
- 5.22
- Q3
- 2.95
- Median
- 2.08
- HWM
- 1.86
- Q1
- 1.43
- Min
- 0.36
LECO
Capital Goods industry group
1.91
- Max
- 5.22
- Q3
- 2.95
- Median
- 2.08
- LECO
- 1.91
- Q1
- 1.43
- Min
- 0.36
Debt / Equity (MRQ)
Both Howmet Aerospace (HWM) at 0.80 and Lincoln Electric (LECO) at 0.78 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
HWM
Capital Goods industry group
0.80
- Max
- 2.33
- Q3
- 1.12
- HWM
- 0.80
- Median
- 0.60
- Q1
- 0.29
- Min
- 0.00
LECO
Capital Goods industry group
0.78
- Max
- 2.33
- Q3
- 1.12
- LECO
- 0.78
- Median
- 0.60
- Q1
- 0.29
- Min
- 0.00
Financial Strength Metrics
| Metric | HWM | LECO |
|---|---|---|
| Current Ratio (MRQ) | 1.86 | 1.91 |
| Debt / Equity (MRQ) | 0.80 | 0.78 |
| Net Debt / EBITDA | 1.35 | 1.00 |
Dividends
Dividend Yield (TTM)
Lincoln Electric (LECO) at 1.16% delivers top-quartile income for its industry, while Howmet Aerospace (HWM) at 0.25% pays a more typical yield — both are credible income propositions, LECO the richer one.
HWM
Capital Goods industry group
0.25%
- Max
- 2.66%
- Q3
- 1.14%
- HWM
- 0.25%
- Median
- 0.24%
- Q1
- 0.00%
- Min
- 0.00%
LECO
Capital Goods industry group
1.16%
- Max
- 2.66%
- LECO
- 1.16%
- Q3
- 1.14%
- Median
- 0.24%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Howmet Aerospace (HWM) at 9.80% pays out a band-typical share of earnings, while Lincoln Electric (LECO) at 30.30% distributes more than its industry norm — less retained, thinner cover.
HWM
Capital Goods industry group
9.80%
- Max
- 67.39%
- Q3
- 28.02%
- HWM
- 9.80%
- Median
- 6.86%
- Q1
- 0.00%
- Min
- 0.00%
LECO
Capital Goods industry group
30.30%
- Max
- 67.39%
- LECO
- 30.30%
- Q3
- 28.02%
- Median
- 6.86%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | HWM | LECO |
|---|---|---|
| Dividend Yield (TTM) | 0.25% | 1.16% |
| Dividend Payout Ratio (TTM) | 9.80% | 30.30% |
Valuation
P/E Ratio (TTM)
Lincoln Electric (LECO) at 26.40 is near its industry’s usual P/E ratio, while Howmet Aerospace (HWM) at 40.35 sits in the richer quartile — HWM needs stronger growth or earnings quality to justify the premium.
HWM
Capital Goods industry group
40.35
- Max
- 59.38
- HWM
- 40.35
- Q3
- 35.92
- Median
- 25.41
- Q1
- 19.47
- Min
- 3.03
LECO
Capital Goods industry group
26.40
- Max
- 59.38
- Q3
- 35.92
- LECO
- 26.40
- Median
- 25.41
- Q1
- 19.47
- Min
- 3.03
P/S Ratio (TTM)
Lincoln Electric (LECO) at 3.21 prices around its industry’s typical P/S ratio, while Howmet Aerospace (HWM) at 8.41 clears its benchmark range — HWM looks notably rich on sales.
HWM
Capital Goods industry group
8.41
- HWM
- 8.41
- Max
- 7.54
- Q3
- 3.76
- Median
- 2.15
- Q1
- 1.03
- Min
- 0.03
LECO
Capital Goods industry group
3.21
- Max
- 7.54
- Q3
- 3.76
- LECO
- 3.21
- Median
- 2.15
- Q1
- 1.03
- Min
- 0.03
P/B Ratio (MRQ)
Both look rich against book: Lincoln Electric (LECO) at 9.59 sits in the upper P/B ratio quartile, and Howmet Aerospace (HWM) at 14.20 prices even higher, above its industry range.
HWM
Capital Goods industry group
14.20
- HWM
- 14.20
- Max
- 9.66
- Q3
- 5.00
- Median
- 3.12
- Q1
- 1.81
- Min
- -1.08
LECO
Capital Goods industry group
9.59
- Max
- 9.66
- LECO
- 9.59
- Q3
- 5.00
- Median
- 3.12
- Q1
- 1.81
- Min
- -1.08
Valuation Metrics
| Metric | HWM | LECO |
|---|---|---|
| P/E Ratio (TTM) | 40.35 | 26.40 |
| P/S Ratio (TTM) | 8.41 | 3.21 |
| P/B Ratio (MRQ) | 14.20 | 9.59 |
| Free Cash Flow Yield (TTM) | 1.58% | 2.68% |