WallStSmart

Huntington Ingalls Industries Inc (HII)vsHowmet Aerospace Inc (HWM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Huntington Ingalls Industries Inc generates 49% more annual revenue ($12.85B vs $8.62B). HWM leads profitability with a 20.2% profit margin vs 4.7%. HWM appears more attractively valued with a PEG of 0.80. HWM earns a higher WallStSmart Score of 73/100 (B).

HII

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 4.7Quality: 6.5
Piotroski: 7/9Altman Z: 2.24

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

HIISignificantly Overvalued (-71.4%)

Margin of Safety

-71.4%

Fair Value

$229.14

Current Price

$293.04

$63.90 premium

UndervaluedFair: $229.14Overvalued

Intrinsic value data unavailable for HWM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HII1 strengths · Avg: 8.0/10
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

HII3 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
4.7%3/10

4.7% margin — thin

Free Cash FlowQuality
$-464.00M2/10

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 : HII

The strongest argument for HII centers on Price/Book. Revenue growth of 13.4% demonstrates continued momentum. PEG of 1.09 suggests the stock is reasonably priced for its 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 : HII

The primary concerns for HII are EPS Growth, Profit Margin, Free Cash Flow. Thin 4.7% margins leave little buffer for downturns.

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

HII 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 59/100), 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.

Huntington Ingalls Industries Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Huntington Ingalls Industries (HII) is the largest military shipbuilding company in the United States as well as a provider of professional services to partners in government and industry.

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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