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HWM vs SARO
Which Stock Would AI Choose? Howmet Aerospace (HWM) vs. StandardAero (SARO) Stock Comparison
Key Takeaways
- Howmet Aerospace (HWM) boasts a significantly larger market capitalization of approximately $96 billion compared to StandardAero's (SARO) $8.16 billion, reflecting its established scale in aerospace components.
- Both companies reported quarterly revenue growth around 14% year-over-year, but HWM demonstrates superior profitability with an 18.27% profit margin versus SARO's 4.58%.
- HWM trades at a trailing P/E of 64.56, higher than SARO's 29.55, signaling market expectations for stronger growth.
- Year-to-date performance shows HWM up about 17% and SARO around 14%, with both nearing key earnings reports on May 7.
- Aerospace demand drives both, but HWM's higher ROE (30.44%) underscores better capital efficiency than SARO's 11.01%.
Introduction
This comparison examines HWM and SARO, two players in the aerospace sector amid rising demand for air travel and defense applications. Investors tracking industrials and cyclical growth stocks may find value in contrasting their business models—one focused on engineered components, the other on aftermarket services. Recent market activity highlights relative performance differences, influenced by earnings anticipation and sector tailwinds, offering insights into momentum, valuation, and risk profiles for portfolio positioning or trading decisions.
HWM Overview and Recent Performance
Howmet Aerospace (HWM) specializes in advanced engineered solutions for jet engines, fastening systems, and structures used in commercial and defense aerospace, as well as transportation. With trailing twelve-month (TTM) revenue of $8.25 billion and quarterly growth of 14.6% year-over-year, the company has benefited from robust aircraft production rates and aftermarket demand. Shares recently traded around $239, up 17% year-to-date but below the 52-week high of $267, reflecting pullbacks amid broader market volatility. Sentiment has been supported by strong Q4 2025 results, including adjusted EPS of $1.05 beating estimates, a dividend increase to $0.12 per share, and analyst price targets averaging $280. Upcoming Q1 earnings on May 7 add focus, with expectations of continued EPS growth.
SARO Overview and Recent Performance
StandardAero (SARO) delivers maintenance, repair, and overhaul (MRO) services for aircraft engines and components, serving commercial, military, and business aviation markets. TTM revenue stands at $6.06 billion, with quarterly growth of 13.5% year-over-year, driven by fleet utilization and defense contracts. The stock recently hovered near $24.50, up about 14% year-to-date yet closer to its 52-week low of $23.83 than high of $34.48, amid share sales and sector pressures. Recent developments include a Rolls-Royce MT7 engine support agreement and Q4 2025 EPS of $0.24 meeting expectations, bolstering aftermarket positioning. Analysts maintain an "Outperform" rating with targets around $37, ahead of Q1 earnings on May 7.
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Head-to-Head Comparison
HWM and SARO both capitalize on aerospace recovery but differ in models: HWM as an original equipment manufacturer (OEM) supplier emphasizes high-margin components, yielding superior ROE (30.44%) and operating margins (26.34%), while SARO's MRO focus offers steadier aftermarket revenue at lower margins (9.33%). Growth drivers align on air traffic and defense spending, yet HWM's forward P/E of 52 signals premium for 18.5% earnings growth versus SARO's more attractive 17.15 forward P/E amid recent share dilution risks. Momentum favors HWM near highs, while SARO trades near lows; risks include supply chain issues for both, with SARO showing higher debt load relative to cash.
Tickeron AI Verdict
Tickeron’s AI currently leans toward HWM based on trend consistency, elevated profitability metrics like 18%+ margins and 30% ROE, and relative strength in recent market positioning versus SARO. While both benefit from sector catalysts, HWM's stability and growth trajectory present a probabilistic edge in the near term.
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. Disclaimers and Limitations
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 HWM is a StrongBuy and SARO 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).
HWM’s FA Score shows that 2 FA rating(s) are green whileSARO’s FA Score has 0 green FA rating(s).
- HWM’s FA Score: 2 green, 3 red.
- SARO’s FA Score: 0 green, 5 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.
HWM’s TA Score shows that 6 TA indicator(s) are bullish while SARO’s TA Score has 4 bullish TA indicator(s).
- HWM’s TA Score: 6 bullish, 4 bearish.
- SARO’s TA Score: 4 bullish, 6 bearish.
Price Growth
HWM (@Aerospace & Defense) experienced а +5.07% price change this week, while SARO (@Aerospace & Defense) price change was +5.08% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was -1.16%. For the same industry, the average monthly price growth was +2.06%, and the average quarterly price growth was +17.36%.
Reported Earning Dates
HWM is expected to report earnings on Jul 30, 2026.
SARO is expected to report earnings on Aug 19, 2026.
Industries' Descriptions
@Aerospace & Defense (-1.16% 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.
| HWM | SARO | HWM / SARO | |
| Capitalization | 106B | 8.95B | 1,185% |
| EBITDA | 2.55B | 757M | 336% |
| Gain YTD | 29.225 | -6.172 | -474% |
| P/E Ratio | 61.41 | 30.58 | 201% |
| Revenue | 8.62B | 6.25B | 138% |
| Total Cash | 2.44B | 89.2M | 2,730% |
| Total Debt | 4.69B | 2.45B | 191% |
HWM | ||
|---|---|---|
OUTLOOK RATING 1..100 | 6 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 74 Overvalued | |
PROFIT vs RISK RATING 1..100 | 3 | |
SMR RATING 1..100 | 29 | |
PRICE GROWTH RATING 1..100 | 44 | |
P/E GROWTH RATING 1..100 | 45 | |
SEASONALITY SCORE 1..100 | 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.
| HWM | SARO | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 47% | 3 days ago 86% |
| Stochastic ODDS (%) | 3 days ago 51% | 3 days ago 74% |
| Momentum ODDS (%) | 3 days ago 77% | 3 days ago 79% |
| MACD ODDS (%) | 3 days ago 82% | 3 days ago 76% |
| TrendWeek ODDS (%) | 3 days ago 72% | 3 days ago 72% |
| TrendMonth ODDS (%) | 3 days ago 50% | 3 days ago 72% |
| Advances ODDS (%) | 3 days ago 71% | 3 days ago 70% |
| Declines ODDS (%) | 12 days ago 50% | 12 days ago 74% |
| BollingerBands ODDS (%) | 7 days ago 58% | 3 days ago 67% |
| Aroon ODDS (%) | 3 days ago 76% | 3 days ago 74% |
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