HWM vs. MRCY: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at HWM and MRCY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | HWM | MRCY |
|---|---|---|
| Company Name | Howmet Aerospace Inc. | Mercury Systems, Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Aerospace & Defense | Aerospace & Defense |
| Market Capitalization | 70.81 billion USD | 4.08 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | November 1, 2016 | January 30, 1998 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of HWM and MRCY 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.
Historical Performance at a Glance
| Symbol | HWM | MRCY |
|---|---|---|
| 5-Day Price Return | 1.39% | 3.79% |
| 13-Week Price Return | 3.51% | 38.76% |
| 26-Week Price Return | 35.29% | 60.27% |
| 52-Week Price Return | 81.76% | 82.26% |
| Month-to-Date Return | -2.29% | 29.55% |
| Year-to-Date Return | 60.60% | 62.21% |
| 10-Day Avg. Volume | 2.57M | 0.65M |
| 3-Month Avg. Volume | 3.04M | 0.67M |
| 3-Month Volatility | 27.94% | 63.16% |
| Beta | 1.46 | 0.81 |
Profitability
Return on Equity (TTM)
HWM
29.58%
Aerospace & Defense Industry
- Max
- 43.89%
- Q3
- 22.42%
- Median
- 12.50%
- Q1
- 5.21%
- Min
- -6.24%
In the upper quartile for the Aerospace & Defense industry, HWM’s Return on Equity of 29.58% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
MRCY
-2.59%
Aerospace & Defense Industry
- Max
- 43.89%
- Q3
- 22.42%
- Median
- 12.50%
- Q1
- 5.21%
- Min
- -6.24%
MRCY has a negative Return on Equity of -2.59%. 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.
Net Profit Margin (TTM)
HWM
18.09%
Aerospace & Defense Industry
- Max
- 14.54%
- Q3
- 8.08%
- Median
- 6.17%
- Q1
- 2.49%
- Min
- -1.63%
HWM’s Net Profit Margin of 18.09% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
MRCY
-4.16%
Aerospace & Defense Industry
- Max
- 14.54%
- Q3
- 8.08%
- Median
- 6.17%
- Q1
- 2.49%
- Min
- -1.63%
MRCY has a negative Net Profit Margin of -4.16%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
Operating Profit Margin (TTM)
HWM
24.28%
Aerospace & Defense Industry
- Max
- 16.63%
- Q3
- 10.38%
- Median
- 8.29%
- Q1
- 6.21%
- Min
- 0.95%
HWM’s Operating Profit Margin of 24.28% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
MRCY
-2.15%
Aerospace & Defense Industry
- Max
- 16.63%
- Q3
- 10.38%
- Median
- 8.29%
- Q1
- 6.21%
- Min
- 0.95%
MRCY has a negative Operating Profit Margin of -2.15%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | HWM | MRCY |
|---|---|---|
| Return on Equity (TTM) | 29.58% | -2.59% |
| Return on Assets (TTM) | 13.03% | -1.58% |
| Net Profit Margin (TTM) | 18.09% | -4.16% |
| Operating Profit Margin (TTM) | 24.28% | -2.15% |
| Gross Profit Margin (TTM) | 32.69% | 27.90% |
Financial Strength
Current Ratio (MRQ)
HWM
2.31
Aerospace & Defense Industry
- Max
- 3.09
- Q3
- 1.98
- Median
- 1.23
- Q1
- 1.03
- Min
- 0.02
HWM’s Current Ratio of 2.31 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
MRCY
3.52
Aerospace & Defense Industry
- Max
- 3.09
- Q3
- 1.98
- Median
- 1.23
- Q1
- 1.03
- Min
- 0.02
MRCY’s Current Ratio of 3.52 is exceptionally high, placing it well outside the typical range for the Aerospace & Defense industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
Debt-to-Equity Ratio (MRQ)
HWM
0.65
Aerospace & Defense Industry
- Max
- 1.70
- Q3
- 1.04
- Median
- 0.68
- Q1
- 0.41
- Min
- 0.00
HWM’s Debt-to-Equity Ratio of 0.65 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
MRCY
0.40
Aerospace & Defense Industry
- Max
- 1.70
- Q3
- 1.04
- Median
- 0.68
- Q1
- 0.41
- Min
- 0.00
Falling into the lower quartile for the Aerospace & Defense industry, MRCY’s Debt-to-Equity Ratio of 0.40 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
HWM
7.92
Aerospace & Defense Industry
- Max
- 36.57
- Q3
- 19.90
- Median
- 7.04
- Q1
- 2.40
- Min
- -7.63
HWM’s Interest Coverage Ratio of 7.92 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.
MRCY
-0.69
Aerospace & Defense Industry
- Max
- 36.57
- Q3
- 19.90
- Median
- 7.04
- Q1
- 2.40
- Min
- -7.63
MRCY has a negative Interest Coverage Ratio of -0.69. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | HWM | MRCY |
|---|---|---|
| Current Ratio (MRQ) | 2.31 | 3.52 |
| Quick Ratio (MRQ) | 0.91 | 2.32 |
| Debt-to-Equity Ratio (MRQ) | 0.65 | 0.40 |
| Interest Coverage Ratio (TTM) | 7.92 | -0.69 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
HWM
0.22%
Aerospace & Defense Industry
- Max
- 2.03%
- Q3
- 1.22%
- Median
- 0.43%
- Q1
- 0.00%
- Min
- 0.00%
HWM’s Dividend Yield of 0.22% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.
MRCY
0.00%
Aerospace & Defense Industry
- Max
- 2.03%
- Q3
- 1.22%
- Median
- 0.43%
- Q1
- 0.00%
- Min
- 0.00%
MRCY 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.
Dividend Payout Ratio (TTM)
HWM
10.74%
Aerospace & Defense Industry
- Max
- 83.87%
- Q3
- 49.90%
- Median
- 16.48%
- Q1
- 0.00%
- Min
- 0.00%
HWM’s Dividend Payout Ratio of 10.74% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
MRCY
0.00%
Aerospace & Defense Industry
- Max
- 83.87%
- Q3
- 49.90%
- Median
- 16.48%
- Q1
- 0.00%
- Min
- 0.00%
MRCY 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.
Dividend at a Glance
| Symbol | HWM | MRCY |
|---|---|---|
| Dividend Yield (TTM) | 0.22% | 0.00% |
| Dividend Payout Ratio (TTM) | 10.74% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
HWM
49.65
Aerospace & Defense Industry
- Max
- 65.97
- Q3
- 54.11
- Median
- 34.53
- Q1
- 23.66
- Min
- 0.00
HWM’s P/E Ratio of 49.65 is within the middle range for the Aerospace & Defense industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
MRCY
--
Aerospace & Defense Industry
- Max
- 65.97
- Q3
- 54.11
- Median
- 34.53
- Q1
- 23.66
- Min
- 0.00
P/E Ratio data for MRCY is currently unavailable.
Price-to-Sales Ratio (TTM)
HWM
8.98
Aerospace & Defense Industry
- Max
- 8.07
- Q3
- 4.49
- Median
- 2.42
- Q1
- 1.39
- Min
- 0.00
With a P/S Ratio of 8.98, HWM trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
MRCY
4.16
Aerospace & Defense Industry
- Max
- 8.07
- Q3
- 4.49
- Median
- 2.42
- Q1
- 1.39
- Min
- 0.00
MRCY’s P/S Ratio of 4.16 aligns with the market consensus for the Aerospace & Defense industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
HWM
14.90
Aerospace & Defense Industry
- Max
- 13.67
- Q3
- 7.92
- Median
- 4.65
- Q1
- 2.68
- Min
- 0.82
At 14.90, HWM’s P/B Ratio is at an extreme premium to the Aerospace & Defense 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.
MRCY
2.17
Aerospace & Defense Industry
- Max
- 13.67
- Q3
- 7.92
- Median
- 4.65
- Q1
- 2.68
- Min
- 0.82
MRCY’s P/B Ratio of 2.17 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.
Valuation at a Glance
| Symbol | HWM | MRCY |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 49.65 | -- |
| Price-to-Sales Ratio (TTM) | 8.98 | 4.16 |
| Price-to-Book Ratio (MRQ) | 14.90 | 2.17 |
| Price-to-Free Cash Flow Ratio (TTM) | 68.14 | 27.12 |