WallStSmart

Howmet Aerospace Inc (HWM)vsVolaris (VLRS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Howmet Aerospace Inc generates 162% more annual revenue ($8.62B vs $3.30B). HWM leads profitability with a 20.2% profit margin vs -5.7%. HWM appears more attractively valued with a PEG of 0.80. HWM earns a higher WallStSmart Score of 73/100 (B).

HWM

Strong Buy

73

out of 100

Grade: B

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

VLRS

Avoid

33

out of 100

Grade: F

Growth: 4.7Profit: 2.5Value: 5.7Quality: 2.5
Piotroski: 2/9Altman Z: 0.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for HWM.

VLRSUndervalued (+62.2%)

Margin of Safety

+62.2%

Fair Value

$26.96

Current Price

$8.37

$18.59 discount

UndervaluedFair: $26.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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
$115.31B9/10

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%

VLRS1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
23.9%8/10

Revenue surging 23.9% year-over-year

Areas to Watch

HWM2 concerns · Avg: 2.0/10
P/E RatioValuation
66.7x2/10

Premium valuation, high expectations priced in

Price/BookValuation
21.2x2/10

Trading at 21.2x book value

VLRS4 concerns · Avg: 3.0/10
Price/BookValuation
14.2x4/10

Trading at 14.2x book value

Market CapQuality
$897.77M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
13.482/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : VLRS

The strongest argument for VLRS centers on Revenue Growth. Revenue growth of 23.9% demonstrates continued momentum.

Bear Case : HWM

The primary concerns for HWM are P/E Ratio, Price/Book. A P/E of 66.7x leaves little room for execution misses.

Bear Case : VLRS

The primary concerns for VLRS are Price/Book, Market Cap, Piotroski F-Score. Debt-to-equity of 56.75 is elevated, increasing financial risk.

Key Dynamics to Monitor

HWM carries more volatility with a beta of 1.21 — expect wider price swings.

VLRS is growing revenue faster at 23.9% — sustainability is the question.

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

Monitor AEROSPACE & DEFENSE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HWM scores higher overall (73/100 vs 33/100), backed by strong 20.2% margins and 19.1% revenue growth. VLRS offers better value entry with a 62.2% margin of safety. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

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.

Volaris

INDUSTRIALS · AIRLINES · USA

Controller Flies Compaa de Aviacin, SAB de CV, Concessionaire Flies Compaa de Aviacin, SAPI The company is headquartered in Mexico City, Mexico.

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