WallStSmart

AeroVironment Inc (AVAV)vsHowmet Aerospace Inc (HWM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Howmet Aerospace Inc generates 412% more annual revenue ($8.25B vs $1.61B). HWM leads profitability with a 18.3% profit margin vs -13.9%. HWM appears more attractively valued with a PEG of 0.80. HWM earns a higher WallStSmart Score of 69/100 (B-).

AVAV

Buy

51

out of 100

Grade: C-

Growth: 10.0Profit: 2.0Value: 4.3Quality: 8.5
Piotroski: 2/9Altman Z: 4.00

HWM

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 9.0Value: 5.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AVAVOvervalued (-5.1%)

Margin of Safety

-5.1%

Fair Value

$231.58

Current Price

$183.50

$48.08 premium

UndervaluedFair: $231.58Overvalued

Intrinsic value data unavailable for HWM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVAV5 strengths · Avg: 9.4/10
Revenue GrowthGrowth
143.4%10/10

Revenue surging 143.4% year-over-year

EPS GrowthGrowth
175.7%10/10

Earnings expanding 175.7% YoY

Altman Z-ScoreHealth
4.0010/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

HWM5 strengths · Avg: 8.6/10
Return on EquityProfitability
30.4%10/10

Every $100 of equity generates 30 in profit

Market CapQuality
$94.83B9/10

Large-cap with strong market position

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Operating MarginProfitability
26.3%8/10

Strong operational efficiency at 26.3%

EPS GrowthGrowth
20.3%8/10

Earnings expanding 20.3% YoY

Areas to Watch

AVAV4 concerns · Avg: 2.8/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-8.7%2/10

ROE of -8.7% — below average capital efficiency

Free Cash FlowQuality
$-17.70M2/10

Negative free cash flow — burning cash

HWM2 concerns · Avg: 3.0/10
Price/BookValuation
18.2x4/10

Trading at 18.2x book value

P/E RatioValuation
63.8x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : AVAV

The strongest argument for AVAV centers on Revenue Growth, EPS Growth, Altman Z-Score. Revenue growth of 143.4% demonstrates continued momentum.

Bull Case : HWM

The strongest argument for HWM centers on Return on Equity, Market Cap, PEG Ratio. Profitability is solid with margins at 18.3% and operating margin at 26.3%. Revenue growth of 14.6% demonstrates continued momentum.

Bear Case : AVAV

The primary concerns for AVAV are PEG Ratio, Piotroski F-Score, Return on Equity.

Bear Case : HWM

The primary concerns for HWM are Price/Book, P/E Ratio. A P/E of 63.8x leaves little room for execution misses.

Key Dynamics to Monitor

AVAV profiles as a hypergrowth stock while HWM is a mature play — different risk/reward profiles.

AVAV carries more volatility with a beta of 1.38 — expect wider price swings.

AVAV is growing revenue faster at 143.4% — sustainability is the question.

HWM generates stronger free cash flow (530M), providing more financial flexibility.

Bottom Line

HWM scores higher overall (69/100 vs 51/100), backed by strong 18.3% margins and 14.6% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

AeroVironment Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

AeroVironment, Inc. designs, develops, produces, supports and operates a portfolio of products and services for government agencies and businesses. The company is headquartered in Arlington, Virginia.

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Howmet Aerospace Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Howmet Aerospace Inc. is an American aerospace company based in Pittsburgh, Pennsylvania. The company manufactures components for jet engines, fasteners and titanium structures for aerospace applications, and forged aluminum wheels for heavy trucks.

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