Hexcel Corporation (HXL) vs. Its Competitors Financial Review

Hexcel Corporation (NYSE: HXL) is one of 44 publicly-traded companies in the “Aerospace & Defense” industry, but how does it contrast to its rivals? We will compare Hexcel Corporation to similar companies based on the strength of its earnings, risk, institutional ownership, analyst recommendations, valuation, dividends and profitability.

Institutional and Insider Ownership

96.9% of Hexcel Corporation shares are held by institutional investors. Comparatively, 70.8% of shares of all “Aerospace & Defense” companies are held by institutional investors. 2.1% of Hexcel Corporation shares are held by insiders. Comparatively, 7.4% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Hexcel Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 0.9%. Hexcel Corporation pays out 18.3% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.6% and pay out 36.1% of their earnings in the form of a dividend.

Volatility & Risk

Hexcel Corporation has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Hexcel Corporation’s rivals have a beta of 1.05, meaning that their average stock price is 5% more volatile than the S&P 500.

Profitability

This table compares Hexcel Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hexcel Corporation 12.99% 18.69% 9.53%
Hexcel Corporation Competitors -2.01% 25.10% 4.00%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Hexcel Corporation and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hexcel Corporation 0 5 6 0 2.55
Hexcel Corporation Competitors 552 2245 2402 89 2.38

Hexcel Corporation presently has a consensus target price of $57.11, indicating a potential upside of 3.99%. As a group, “Aerospace & Defense” companies have a potential upside of 7.01%. Given Hexcel Corporation’s rivals higher possible upside, analysts plainly believe Hexcel Corporation has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Hexcel Corporation and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Hexcel Corporation $1.95 billion $442.00 million 20.12
Hexcel Corporation Competitors $8.56 billion $1.20 billion 80.65

Hexcel Corporation’s rivals have higher revenue and earnings than Hexcel Corporation. Hexcel Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Hexcel Corporation rivals beat Hexcel Corporation on 9 of the 15 factors compared.

Hexcel Corporation Company Profile

Hexcel Corporation is a composites company. The Company develops, manufactures, and markets lightweight, structural materials, including carbon fibers, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, adhesives, engineered honeycomb and structures, for use in Commercial Aerospace, Space and Defense and Industrial markets. It operates in two segments: Composite Materials and Engineered Products. The Composite Materials segment consists of its carbon fiber, specialty reinforcements, resins, prepregs and other fiber-reinforced matrix materials, and honeycomb core product lines. The Engineered Products segment consists of lightweight structures, molded components, engineered core and honeycomb products with added functionality. Its products are used in a range of end applications, such as commercial and military aircraft, space launch vehicles and satellites, wind turbine blades, automotive, and recreational products.

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