WallStSmart

Leonardo DRS, Inc. Common Stock (DRS)vsHowmet Aerospace Inc (HWM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Howmet Aerospace Inc generates 126% more annual revenue ($8.25B vs $3.65B). HWM leads profitability with a 18.3% profit margin vs 7.6%. DRS trades at a lower P/E of 38.3x. HWM earns a higher WallStSmart Score of 69/100 (B-).

DRS

Hold

45

out of 100

Grade: D+

Growth: 6.7Profit: 5.5Value: 4.3Quality: 6.8
Piotroski: 6/9Altman Z: 1.52

HWM

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 9.0Value: 5.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRSOvervalued (-12.2%)

Margin of Safety

-12.2%

Fair Value

$33.75

Current Price

$39.47

$5.72 premium

UndervaluedFair: $33.75Overvalued

Intrinsic value data unavailable for HWM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRS0 strengths · Avg: 0/10

No standout strengths identified

HWM5 strengths · Avg: 8.6/10
Return on EquityProfitability
30.4%10/10

Every $100 of equity generates 30 in profit

Market CapQuality
$94.83B9/10

Large-cap with strong market position

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Operating MarginProfitability
26.3%8/10

Strong operational efficiency at 26.3%

EPS GrowthGrowth
20.3%8/10

Earnings expanding 20.3% YoY

Areas to Watch

DRS3 concerns · Avg: 3.7/10
P/E RatioValuation
38.3x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.524/10

Distress zone — elevated risk

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

HWM2 concerns · Avg: 3.0/10
Price/BookValuation
18.2x4/10

Trading at 18.2x book value

P/E RatioValuation
63.8x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : DRS

DRS has a balanced fundamental profile.

Bull 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.

Bear Case : DRS

The primary concerns for DRS are P/E Ratio, Altman Z-Score, Profit Margin.

Bear Case : HWM

The primary concerns for HWM are Price/Book, P/E Ratio. A P/E of 63.8x leaves little room for execution misses.

Key Dynamics to Monitor

DRS profiles as a value stock while HWM is a mature play — different risk/reward profiles.

HWM carries more volatility with a beta of 1.24 — expect wider price swings.

HWM is growing revenue faster at 14.6% — sustainability is the question.

HWM generates stronger free cash flow (530M), providing more financial flexibility.

Bottom Line

HWM scores higher overall (69/100 vs 45/100), backed by strong 18.3% margins and 14.6% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Leonardo DRS, Inc. Common Stock

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Leonardo DRS, Inc. (ticker: DRS) is a prominent provider of advanced technologies and solutions focused on enhancing national defense and security for both military and commercial sectors. The company specializes in electronic and sensor systems, sophisticated communication solutions, and comprehensive software development, primarily serving the U.S. Department of Defense and allied forces. With a robust emphasis on research and development, Leonardo DRS is well-positioned to deliver cutting-edge products that support diverse operational needs across land, air, and sea, solidifying its role as a key player in the global defense 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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