WallStSmart

GE Aerospace (GE)vsHowmet Aerospace Inc (HWM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

GE Aerospace generates 456% more annual revenue ($45.85B vs $8.25B). GE leads profitability with a 19.0% profit margin vs 18.3%. HWM appears more attractively valued with a PEG of 0.80. HWM earns a higher WallStSmart Score of 69/100 (B-).

GE

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 6.7Quality: 5.3
Piotroski: 4/9Altman Z: 1.69

HWM

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 9.0Value: 4.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GEUndervalued (+22.7%)

Margin of Safety

+22.7%

Fair Value

$377.21

Current Price

$300.96

$76.25 discount

UndervaluedFair: $377.21Overvalued
HWMSignificantly Overvalued (-58.8%)

Margin of Safety

-58.8%

Fair Value

$145.34

Current Price

$232.94

$87.60 premium

UndervaluedFair: $145.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GE5 strengths · Avg: 8.8/10
Market CapQuality
$320.66B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
44.7%10/10

Every $100 of equity generates 45 in profit

Revenue GrowthGrowth
17.6%8/10

17.6% revenue growth

EPS GrowthGrowth
37.4%8/10

Earnings expanding 37.4% YoY

Free Cash FlowQuality
$1.79B8/10

Generating 1.8B in free cash flow

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

Every $100 of equity generates 30 in profit

Market CapQuality
$97.38B9/10

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

GE4 concerns · Avg: 3.5/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
16.9x4/10

Trading at 16.9x book value

Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

PEG RatioValuation
5.182/10

Expensive relative to growth rate

HWM2 concerns · Avg: 3.0/10
Price/BookValuation
17.5x4/10

Trading at 17.5x book value

P/E RatioValuation
65.4x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : GE

The strongest argument for GE centers on Market Cap, Return on Equity, Revenue Growth. Profitability is solid with margins at 19.0% and operating margin at 19.6%. Revenue growth of 17.6% 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 : GE

The primary concerns for GE are P/E Ratio, Price/Book, Altman Z-Score.

Bear Case : HWM

The primary concerns for HWM are Price/Book, P/E Ratio. A P/E of 65.4x leaves little room for execution misses.

Key Dynamics to Monitor

GE profiles as a growth stock while HWM is a mature play — different risk/reward profiles.

GE carries more volatility with a beta of 1.37 — expect wider price swings.

GE is growing revenue faster at 17.6% — sustainability is the question.

GE generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

HWM scores higher overall (69/100 vs 65/100), backed by strong 18.3% margins and 14.6% revenue growth. GE offers better value entry with a 22.7% margin of safety. 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.

GE Aerospace

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. As of 2018, the company operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing and venture capital and finance.

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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