Howmet Aerospace Inc (HWM)vsWestern Digital Corporation (WDC)
HWM
Howmet Aerospace Inc
$231.21
-0.74%
INDUSTRIALS · Cap: $97.38B
WDC
Western Digital Corporation
$293.10
-7.52%
TECHNOLOGY · Cap: $100.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Western Digital Corporation generates 30% more annual revenue ($10.73B vs $8.25B). WDC leads profitability with a 35.6% profit margin vs 18.3%. WDC appears more attractively valued with a PEG of 0.69. HWM earns a higher WallStSmart Score of 69/100 (B-).
HWM
Strong Buy69
out of 100
Grade: B-
WDC
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-58.8%
Fair Value
$145.34
Current Price
$231.21
$85.87 premium
Margin of Safety
-311.2%
Fair Value
$66.57
Current Price
$293.10
$226.53 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 30 in profit
Large-cap with strong market position
Growing faster than its price suggests
Strong operational efficiency at 26.3%
Earnings expanding 20.3% YoY
Every $100 of equity generates 41 in profit
Keeps 36 of every $100 in revenue as profit
Large-cap with strong market position
Growing faster than its price suggests
Areas to Watch
Trading at 17.3x book value
Premium valuation, high expectations priced in
Moderate valuation
Trading at 14.0x book value
Revenue declined 41.0%
Earnings declined 95.9%
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Market Cap. Profitability is solid with margins at 35.6% and operating margin at 15.4%. PEG of 0.69 suggests the stock is reasonably priced for its growth.
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.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
HWM profiles as a mature stock while WDC is a declining play — different risk/reward profiles.
WDC carries more volatility with a beta of 1.85 — expect wider price swings.
HWM is growing revenue faster at 14.6% — sustainability is the question.
WDC generates stronger free cash flow (653M), providing more financial flexibility.
Bottom Line
HWM scores higher overall (69/100 vs 55/100), backed by strong 18.3% margins and 14.6% 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.
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.
Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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