WallStSmart

Leonardo DRS, Inc. Common Stock (DRS)vsHowmet Aerospace Inc (HWM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Howmet Aerospace Inc generates 133% more annual revenue ($8.62B vs $3.69B). HWM leads profitability with a 20.2% profit margin vs 7.8%. DRS trades at a lower P/E of 45.4x. HWM earns a higher WallStSmart Score of 73/100 (B).

DRS

Hold

45

out of 100

Grade: D+

Growth: 7.3Profit: 5.5Value: 4.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.49

HWM

Strong Buy

73

out of 100

Grade: B

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

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRS2 strengths · Avg: 9.0/10
Debt/EquityHealth
0.1010/10

Conservative balance sheet, low leverage

EPS GrowthGrowth
22.0%8/10

Earnings expanding 22.0% YoY

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

DRS4 concerns · Avg: 2.3/10
Profit MarginProfitability
7.8%3/10

7.8% margin — thin

P/E RatioValuation
45.4x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-96.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.492/10

Distress zone — elevated risk

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 : DRS

The strongest argument for DRS centers on Debt/Equity, EPS Growth.

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 : DRS

The primary concerns for DRS are Profit Margin, P/E Ratio, Free Cash Flow. A P/E of 45.4x leaves little room for execution misses.

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

DRS profiles as a value stock while HWM is a growth play — different risk/reward profiles.

HWM carries more volatility with a beta of 1.19 — expect wider price swings.

HWM is growing revenue faster at 19.1% — sustainability is the question.

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

Bottom Line

HWM scores higher overall (73/100 vs 45/100), backed by strong 20.2% margins and 19.1% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Leonardo DRS, Inc. Common Stock

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Leonardo DRS, Inc. (ticker: DRS) is a leading provider of advanced technology solutions that enhance national defense and security across both military and commercial applications. The company specializes in electronic and sensor systems, innovative communication solutions, and comprehensive software development, predominantly catering to the U.S. Department of Defense and its allied forces. Committed to research and development, Leonardo DRS is strategically positioned to deliver state-of-the-art products that meet a wide array of operational requirements in land, air, and maritime environments, establishing itself as a pivotal player in the global defense landscape.

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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