Howmet Aerospace (NYSE:HWM) & Boeing (NYSE:BA) Head to Head Comparison

Howmet Aerospace (NYSE:HWM) and Boeing (NYSE:BA) are both large-cap aerospace companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Valuation and Earnings

This table compares Howmet Aerospace and Boeing”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Howmet Aerospace	$7.43 billion	10.31	$1.16 billion	$3.42	55.57
Boeing	$66.52 billion	2.45	-$11.82 billion	($16.51)	-13.05

Howmet Aerospace has higher earnings, but lower revenue than Boeing. Boeing is trading at a lower price-to-earnings ratio than Howmet Aerospace, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

90.5% of Howmet Aerospace shares are held by institutional investors. Comparatively, 64.8% of Boeing shares are held by institutional investors. 1.1% of Howmet Aerospace shares are held by insiders. Comparatively, 0.1% of Boeing shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Howmet Aerospace and Boeing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Howmet Aerospace	18.09%	28.17%	12.26%
Boeing	-14.18%	N/A	-7.78%

Volatility and Risk

Howmet Aerospace has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Boeing has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Howmet Aerospace and Boeing, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Howmet Aerospace	0	5	14	0	2.74
Boeing	3	3	17	3	2.77

Howmet Aerospace presently has a consensus price target of $176.21, suggesting a potential downside of 7.27%. Boeing has a consensus price target of $236.00, suggesting a potential upside of 9.50%. Given Boeing’s stronger consensus rating and higher probable upside, analysts clearly believe Boeing is more favorable than Howmet Aerospace.

Summary

Howmet Aerospace beats Boeing on 9 of the 15 factors compared between the two stocks.

About Howmet Aerospace

Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries in the United States, Japan, France, Germany, the United Kingdom, Mexico, Italy, Canada, Poland, China, and internationally. It operates through four segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. The Engine Products segment offers airfoils and seamless rolled rings primarily for aircraft engines and industrial gas turbines; and rotating and structural parts. The Fastening Systems segment produces aerospace fastening systems, as well as commercial transportation, industrial, and other fasteners; and latches, bearings, fluid fittings, and installation tools. The Engineered Structures segment provides titanium ingots and mill products, aluminum and nickel forgings, and machined components and assemblies for aerospace and defense applications; and titanium forgings, extrusions, and forming and machining services for airframe, wing, aero-engine, and landing gear components. The Forged Wheels segment offers forged aluminum wheels and related products for heavy-duty trucks and commercial transportation markets. The company was formerly known as Arconic Inc. Howmet Aerospace Inc. was founded in 1888 and is based in Pittsburgh, Pennsylvania.

About Boeing

The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company operates through Commercial Airplanes; Defense, Space & Security; and Global Services segments. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for passenger and cargo requirements, as well as provides fleet support services. The Defense, Space & Security segment engages in the research, development, production, and modification of manned and unmanned military aircraft and weapons systems; strategic defense and intelligence systems, which include strategic missile and defense systems, command, control, communications, computers, intelligence, surveillance and reconnaissance, cyber and information solutions, and intelligence systems; and satellite systems, such as government and commercial satellites, and space exploration. The Global Services segment offers products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and data analytics and digital services to commercial and defense customers. The Boeing Company was incorporated in 1916 and is based in Arlington, Virginia.