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HWM vs. PCAR: A Head-to-Head Stock Comparison

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Here’s a clear look at HWM and PCAR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolHWMPCAR
Company NameHowmet Aerospace Inc.PACCAR Inc
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryAerospace & DefenseMachinery
Market Capitalization69.03 billion USD52.78 billion USD
ExchangeNYSENasdaqGS
Listing DateNovember 1, 2016March 17, 1980
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of HWM and PCAR 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.

HWM vs. PCAR: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolHWMPCAR
5-Day Price Return-0.38%1.06%
13-Week Price Return5.05%6.55%
26-Week Price Return22.85%-6.25%
52-Week Price Return77.36%5.49%
Month-to-Date Return-4.75%1.77%
Year-to-Date Return56.57%-3.37%
10-Day Avg. Volume2.42M2.17M
3-Month Avg. Volume3.03M2.83M
3-Month Volatility27.54%24.40%
Beta1.470.96

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.

PCAR

16.81%

Machinery Industry

Max
34.68%
Q3
19.06%
Median
13.13%
Q1
8.53%
Min
-4.87%

PCAR’s Return on Equity of 16.81% is on par with the norm for the Machinery industry, indicating its profitability relative to shareholder equity is typical for the sector.

HWM vs. PCAR: A comparison of their Return on Equity (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

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.

PCAR

9.88%

Machinery Industry

Max
19.74%
Q3
11.24%
Median
8.13%
Q1
5.38%
Min
-1.11%

PCAR’s Net Profit Margin of 9.88% is aligned with the median group of its peers in the Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.

HWM vs. PCAR: A comparison of their Net Profit Margin (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

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.

PCAR

14.86%

Machinery Industry

Max
26.63%
Q3
16.15%
Median
11.27%
Q1
7.72%
Min
-4.91%

PCAR’s Operating Profit Margin of 14.86% is around the midpoint for the Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.

HWM vs. PCAR: A comparison of their Operating Profit Margin (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Profitability at a Glance

SymbolHWMPCAR
Return on Equity (TTM)29.58%16.81%
Return on Assets (TTM)13.03%7.08%
Net Profit Margin (TTM)18.09%9.88%
Operating Profit Margin (TTM)24.28%14.86%
Gross Profit Margin (TTM)32.69%21.19%

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.

PCAR

1.64

Machinery Industry

Max
3.83
Q3
2.32
Median
1.72
Q1
1.28
Min
0.78

PCAR’s Current Ratio of 1.64 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.

HWM vs. PCAR: A comparison of their Current Ratio (MRQ) against their respective Aerospace & Defense and Machinery industry benchmarks.

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.

PCAR

0.84

Machinery Industry

Max
1.49
Q3
0.75
Median
0.44
Q1
0.26
Min
0.00

PCAR’s leverage is in the upper quartile of the Machinery industry, with a Debt-to-Equity Ratio of 0.84. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

HWM vs. PCAR: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Aerospace & Defense and Machinery industry benchmarks.

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.

PCAR

27.70

Machinery Industry

Max
67.55
Q3
33.79
Median
13.87
Q1
7.97
Min
-1.43

PCAR’s Interest Coverage Ratio of 27.70 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.

HWM vs. PCAR: A comparison of their Interest Coverage Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Financial Strength at a Glance

SymbolHWMPCAR
Current Ratio (MRQ)2.311.64
Quick Ratio (MRQ)0.911.24
Debt-to-Equity Ratio (MRQ)0.650.84
Interest Coverage Ratio (TTM)7.9227.70

Growth

Revenue Growth

HWM vs. PCAR: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

HWM vs. PCAR: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

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.

PCAR

4.31%

Machinery Industry

Max
5.32%
Q3
2.84%
Median
1.87%
Q1
1.09%
Min
0.00%

With a Dividend Yield of 4.31%, PCAR offers a more attractive income stream than most of its peers in the Machinery industry, signaling a strong commitment to shareholder returns.

HWM vs. PCAR: A comparison of their Dividend Yield (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

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.

PCAR

72.73%

Machinery Industry

Max
202.17%
Q3
98.65%
Median
55.54%
Q1
29.03%
Min
0.00%

PCAR’s Dividend Payout Ratio of 72.73% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

HWM vs. PCAR: A comparison of their Dividend Payout Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Dividend at a Glance

SymbolHWMPCAR
Dividend Yield (TTM)0.22%4.31%
Dividend Payout Ratio (TTM)10.74%72.73%

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.

PCAR

16.89

Machinery Industry

Max
53.66
Q3
31.29
Median
22.00
Q1
16.18
Min
7.00

PCAR’s P/E Ratio of 16.89 is within the middle range for the Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

HWM vs. PCAR: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

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.

PCAR

1.67

Machinery Industry

Max
5.04
Q3
2.72
Median
1.67
Q1
1.04
Min
0.24

PCAR’s P/S Ratio of 1.67 aligns with the market consensus for the Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

HWM vs. PCAR: A comparison of their Price-to-Sales Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

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.

PCAR

2.63

Machinery Industry

Max
7.23
Q3
3.90
Median
2.52
Q1
1.47
Min
0.49

PCAR’s P/B Ratio of 2.63 is within the conventional range for the Machinery industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

HWM vs. PCAR: A comparison of their Price-to-Book Ratio (MRQ) against their respective Aerospace & Defense and Machinery industry benchmarks.

Valuation at a Glance

SymbolHWMPCAR
Price-to-Earnings Ratio (TTM)49.6516.89
Price-to-Sales Ratio (TTM)8.981.67
Price-to-Book Ratio (MRQ)14.902.63
Price-to-Free Cash Flow Ratio (TTM)68.1418.02