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HEI vs HWM
Which Stock Would AI Choose? HEICO Corporation (HEI) vs. Howmet Aerospace Inc. (HWM) Stock Comparison
Key Takeaways
- Both HEI and HWM operate in the aerospace and defense sector, with exposure to commercial aftermarket demand and defense spending, though their business models differ in scale and focus.
- HEI delivered record fiscal Q2 2026 results with 25% sales growth and expanded margins, supported by organic gains and acquisitions, while maintaining a premium valuation.
- HWM reported stronger recent momentum, with Q2 2026 revenue up 24% and a significant upward revision to full-year 2026 guidance, driving outperformance over the past year.
- HWM exhibits higher market capitalization and recent total returns compared to HEI, reflecting broader exposure across engine products and gas turbines.
- Relative performance shows HWM with more pronounced year-to-date strength amid robust cash generation and share repurchases, while HEI emphasizes consistent aftermarket recurring revenue.
- Sector sentiment remains positive for both amid sustained aerospace demand, though valuations reflect growth expectations priced into recent trading levels.
Introduction
This comparison examines HEI and HWM, two aerospace and defense companies navigating similar market tailwinds from commercial aviation recovery and defense budgets. The analysis highlights differences in business models, recent earnings execution, and relative stock behavior to assist traders and investors evaluating positioning within the sector. Institutional and growth-oriented participants may find the contrast useful for assessing exposure to aftermarket services versus integrated component manufacturing in the current environment of elevated demand and supply-chain normalization.
HEI Overview and Recent Performance
HEICO Corporation (HEI) provides aerospace and defense products through its Flight Support Group and Electronic Technologies Group segments, emphasizing aftermarket parts and electronics. In recent weeks, the stock has traded near multi-month highs following fiscal Q2 2026 results that featured record net sales of $1.38 billion, up 25.3% year over year, and diluted EPS of $1.66. Organic growth reached 18%, aided by acquisitions and margin expansion to 25.5% operating margin. Sentiment has remained constructive on recurring aftermarket revenue, though a recent analyst downgrade to hold tempered enthusiasm amid elevated valuation multiples. Broader market activity reflects steady demand for maintenance, repair, and overhaul services.
HWM Overview and Recent Performance
Howmet Aerospace Inc. (HWM) manufactures engineered metal components, primarily for commercial aerospace, defense, and industrial gas turbine markets. Recent market activity shows continued strength following its Q2 2026 earnings release, with revenue rising 24% to $2.55 billion and adjusted EPS reaching $1.33. The company raised full-year 2026 revenue guidance to a baseline of $10.05 billion and adjusted EPS to $5.27, citing robust demand across segments. Share repurchases totaled $300 million in the quarter, supporting cash returns. Performance has reflected broad-based gains in commercial aerospace and turbine products, with positive sentiment tied to production rate increases and margin improvement to 32.1% adjusted EBITDA margin.
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Head-to-Head Comparison
HEI focuses on high-margin aftermarket replacement parts with recurring revenue characteristics, resulting in a smaller market capitalization near $50 billion and a more concentrated exposure to aerospace maintenance cycles. In contrast, HWM operates at larger scale with integrated engine components and broader end-market reach, including gas turbines, supporting higher recent revenue growth and cash generation. Recent momentum favors HWM following its guidance increase, while HEI demonstrates steadier organic execution but faces analyst rating adjustments. Risk factors include supply-chain dependencies for both, with HEI additionally sensitive to PMA parts regulatory dynamics and HWM to production ramp schedules. Market sentiment reflects sector-wide aerospace strength, though HWM exhibits greater year-over-year return outperformance amid elevated industrial demand.
Tickeron AI Verdict
Based on observable factors including earnings delivery, guidance revisions, and relative price behavior over recent weeks, Tickeron’s AI models currently assign a higher probabilistic preference to HWM. Stronger momentum in commercial and turbine segments, combined with upward estimate revisions, positions it favorably in trend-consistency metrics relative to HEI, though both remain subject to sector catalysts and valuation considerations. This assessment reflects data-driven positioning rather than certainty.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is HEI is a Hold and HWM is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
HEI’s FA Score shows that 1 FA rating(s) are green whileHWM’s FA Score has 2 green FA rating(s).
- HEI’s FA Score: 1 green, 4 red.
- HWM’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
HEI’s TA Score shows that 4 TA indicator(s) are bullish while HWM’s TA Score has 4 bullish TA indicator(s).
- HEI’s TA Score: 4 bullish, 6 bearish.
- HWM’s TA Score: 4 bullish, 6 bearish.
Price Growth
HEI (@Aerospace & Defense) experienced а -2.78% price change this week, while HWM (@Aerospace & Defense) price change was -9.16% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was +1.14%. For the same industry, the average monthly price growth was -12.28%, and the average quarterly price growth was -7.04%.
Reported Earning Dates
HEI is expected to report earnings on Dec 21, 2026.
HWM is expected to report earnings on Oct 29, 2026.
Industries' Descriptions
@Aerospace & Defense (+1.14% weekly)Aerospace & Defense is one of largest industries in the U.S., mainly comprising the following areas: commercial airliners, military aircraft, missiles, space, and general aviation. Focused heavily on research & development, it is also one of the fastest growing industries. Military aircraft has the largest market share in the industry’s sales, followed by space systems, civil aircraft, and missiles. Aerospace exports, directly and indirectly, support more jobs than the export of any other commodity, according to a study by the U.S. Department of Commerce. Boeing Company, Lockheed Martin Corporation and General Electric Company are some of the most prominent players in this space.
| HEI | HWM | HEI / HWM | |
| Capitalization | 37.3B | 92.3B | 40% |
| EBITDA | 1.47B | 2.75B | 53% |
| Gain YTD | -2.243 | 13.099 | -17% |
| P/E Ratio | 52.68 | 49.90 | 106% |
| Revenue | 5.18B | 9.12B | 57% |
| Total Cash | 241M | 563M | 43% |
| Total Debt | 2.54B | 4.66B | 54% |
HEI | HWM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 72 Overvalued | 73 Overvalued | |
PROFIT vs RISK RATING 1..100 | 22 | 3 | |
SMR RATING 1..100 | 48 | 29 | |
PRICE GROWTH RATING 1..100 | 60 | 52 | |
P/E GROWTH RATING 1..100 | 73 | 34 | |
SEASONALITY SCORE 1..100 | n/a | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
HEI's Valuation (72) in the Aerospace And Defense industry is in the same range as HWM (73) in the null industry. This means that HEI’s stock grew similarly to HWM’s over the last 12 months.
HWM's Profit vs Risk Rating (3) in the null industry is in the same range as HEI (22) in the Aerospace And Defense industry. This means that HWM’s stock grew similarly to HEI’s over the last 12 months.
HWM's SMR Rating (29) in the null industry is in the same range as HEI (48) in the Aerospace And Defense industry. This means that HWM’s stock grew similarly to HEI’s over the last 12 months.
HWM's Price Growth Rating (52) in the null industry is in the same range as HEI (60) in the Aerospace And Defense industry. This means that HWM’s stock grew similarly to HEI’s over the last 12 months.
HWM's P/E Growth Rating (34) in the null industry is somewhat better than the same rating for HEI (73) in the Aerospace And Defense industry. This means that HWM’s stock grew somewhat faster than HEI’s over the last 12 months.
| HEI | HWM | |
|---|---|---|
| RSI ODDS (%) | 5 days ago 89% | 5 days ago 79% |
| Stochastic ODDS (%) | 5 days ago 69% | 5 days ago 80% |
| Momentum ODDS (%) | 5 days ago 58% | 5 days ago 57% |
| MACD ODDS (%) | 5 days ago 68% | 5 days ago 49% |
| TrendWeek ODDS (%) | 5 days ago 52% | 5 days ago 52% |
| TrendMonth ODDS (%) | 5 days ago 48% | 5 days ago 47% |
| Advances ODDS (%) | 28 days ago 64% | 14 days ago 73% |
| Declines ODDS (%) | 7 days ago 53% | 9 days ago 49% |
| BollingerBands ODDS (%) | 5 days ago 75% | 5 days ago 88% |
| Aroon ODDS (%) | 5 days ago 68% | 5 days ago 44% |
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HEI and
Correlation & Price change
A.I.dvisor indicates that over the last year, HEI has been loosely correlated with GE. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if HEI jumps, then GE could also see price increases.
| Ticker / NAME | Correlation To HEI | 1D Price Change % | ||
|---|---|---|---|---|
| HEI | 100% | -2.88% | ||
| GE - HEI | 62% Loosely correlated | -0.66% | ||
| LOAR - HEI | 60% Loosely correlated | -0.22% | ||
| HWM - HEI | 55% Loosely correlated | -10.70% | ||
| VSEC - HEI | 55% Loosely correlated | +1.38% | ||
| CW - HEI | 55% Loosely correlated | +1.05% | ||
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HWM and
Correlation & Price change
A.I.dvisor indicates that over the last year, HWM has been closely correlated with GE. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if HWM jumps, then GE could also see price increases.
| Ticker / NAME | Correlation To HWM | 1D Price Change % | ||
|---|---|---|---|---|
| HWM | 100% | -10.70% | ||
| GE - HWM | 72% Closely correlated | -0.66% | ||
| CW - HWM | 68% Closely correlated | +1.05% | ||
| SARO - HWM | 59% Loosely correlated | -1.37% | ||
| WWD - HWM | 59% Loosely correlated | -2.01% | ||
| VSEC - HWM | 58% Loosely correlated | +1.38% | ||
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