WallStSmart

AeroVironment Inc (AVAV)vsHowmet Aerospace Inc (HWM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Howmet Aerospace Inc generates 435% more annual revenue ($8.62B vs $1.61B). HWM leads profitability with a 20.2% profit margin vs -13.9%. HWM appears more attractively valued with a PEG of 0.80. HWM earns a higher WallStSmart Score of 73/100 (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

73

out of 100

Grade: B

Growth: 8.7Profit: 9.0Value: 5.0Quality: 7.5
Piotroski: 6/9Altman Z: 2.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AVAVOvervalued (-11.4%)

Margin of Safety

-11.4%

Fair Value

$218.59

Current Price

$185.92

$32.67 premium

UndervaluedFair: $218.59Overvalued

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
2.2x8/10

Reasonable price relative to book value

HWM6 strengths · Avg: 9.0/10
Return on EquityProfitability
31.6%10/10

Every $100 of equity generates 32 in profit

EPS GrowthGrowth
71.4%10/10

Earnings expanding 71.4% YoY

Market CapQuality
$100.31B9/10

Large-cap with strong market position

Profit MarginProfitability
20.2%9/10

Keeps 20 of every $100 in revenue as profit

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Operating MarginProfitability
28.2%8/10

Strong operational efficiency at 28.2%

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
-5.3%2/10

ROE of -5.3% — 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
58.2x2/10

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, EPS Growth, Market Cap. Profitability is solid with margins at 20.2% and operating margin at 28.2%. Revenue growth of 19.1% 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 58.2x leaves little room for execution misses.

Key Dynamics to Monitor

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

AVAV carries more volatility with a beta of 1.36 — expect wider price swings.

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

HWM generates stronger free cash flow (359M), providing more financial flexibility.

Bottom Line

HWM scores higher overall (73/100 vs 51/100), backed by strong 20.2% margins and 19.1% 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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