WallStSmart

Howmet Aerospace Inc (HWM)vsPACCAR Inc (PCAR)

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Smart Verdict

WallStSmart Research — data-driven comparison

PACCAR Inc generates 205% more annual revenue ($27.82B vs $9.12B). HWM leads profitability with a 20.5% profit margin vs 9.0%. HWM appears more attractively valued with a PEG of 0.80. HWM earns a higher WallStSmart Score of 75/100 (B+).

HWM

Strong Buy

75

out of 100

Grade: B+

Growth: 8.7Profit: 9.0Value: 5.7Quality: 7.0
Piotroski: 6/9Altman Z: 2.61

PCAR

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 6.0Value: 5.3Quality: 7.0
Piotroski: 2/9Altman Z: 2.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for HWM.

PCARSignificantly Overvalued (-25.9%)

Margin of Safety

-25.9%

Fair Value

$85.86

Current Price

$110.82

$24.96 premium

UndervaluedFair: $85.86Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HWM6 strengths · Avg: 8.7/10
Return on EquityProfitability
32.6%10/10

Every $100 of equity generates 33 in profit

Market CapQuality
$92.36B9/10

Large-cap with strong market position

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Operating MarginProfitability
28.5%8/10

Strong operational efficiency at 28.5%

Revenue GrowthGrowth
24.1%8/10

Revenue surging 24.1% year-over-year

PCAR3 strengths · Avg: 8.3/10
Market CapQuality
$57.54B9/10

Large-cap with strong market position

PEG RatioValuation
0.838/10

Growing faster than its price suggests

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

HWM2 concerns · Avg: 3.0/10
Price/BookValuation
15.4x4/10

Trading at 15.4x book value

P/E RatioValuation
49.5x2/10

Premium valuation, high expectations priced in

PCAR3 concerns · Avg: 3.7/10
Revenue GrowthGrowth
0.5%4/10

0.5% revenue growth

EPS GrowthGrowth
4.2%4/10

4.2% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : HWM

The strongest argument for HWM centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 28.5%. Revenue growth of 24.1% demonstrates continued momentum.

Bull Case : PCAR

The strongest argument for PCAR centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.83 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 49.5x leaves little room for execution misses.

Bear Case : PCAR

The primary concerns for PCAR are Revenue Growth, EPS Growth, Piotroski F-Score.

Key Dynamics to Monitor

HWM profiles as a growth stock while PCAR is a value play — different risk/reward profiles.

HWM carries more volatility with a beta of 1.20 — expect wider price swings.

HWM is growing revenue faster at 24.1% — sustainability is the question.

HWM generates stronger free cash flow (479M), providing more financial flexibility.

Bottom Line

HWM scores higher overall (75/100 vs 56/100), backed by strong 20.5% margins and 24.1% 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.

PACCAR Inc

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.

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