Home > Comparison > Industrials > HWM vs IEX
The strategic rivalry between Howmet Aerospace Inc. and IDEX Corporation shapes the industrial machinery sector’s evolution. Howmet Aerospace operates as a capital-intensive leader specializing in aerospace components, while IDEX Corporation focuses on diversified fluid and safety solutions with a more specialized, innovation-driven model. This head-to-head contrasts scale with niche expertise in a race for industrial leadership. This analysis will identify which company offers a superior risk-adjusted profile for a balanced portfolio.
Table of contents
Companies Overview
Howmet Aerospace and IDEX Corporation occupy essential niches in the industrial machinery sector, shaping critical supply chains globally.
Howmet Aerospace Inc.: Aerospace Engineering Powerhouse
Howmet Aerospace leads as a provider of advanced engineered solutions for aerospace and transportation. Its core revenue stems from manufacturing airfoils, fastening systems, and forged wheels. The company’s 2026 strategy centers on expanding its Engine Products and Engineered Structures segments to strengthen its aerospace market dominance.
IDEX Corporation: Diverse Industrial Solutions Leader
IDEX Corporation excels in applied solutions across fluid handling, health sciences, and fire safety. It generates revenue primarily through precision pumps, fluidics, and firefighting equipment. In 2026, IDEX focuses on innovation within its Fluid & Metering Technologies segment, aiming to deepen penetration in food, pharmaceutical, and industrial markets.
Strategic Collision: Similarities & Divergences
Both companies operate in industrial machinery but diverge in scope: Howmet pursues a specialized aerospace and transportation focus, while IDEX maintains a diversified product portfolio across multiple industries. They compete most directly in engineered components but differ in customer bases. Howmet’s aerospace concentration contrasts with IDEX’s broader industrial applications, shaping distinct risk and growth profiles for investors.
Income Statement Comparison
The following data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Howmet Aerospace Inc. (HWM) | IDEX Corporation (IEX) |
|---|---|---|
| Revenue | 8.25B | 3.46B |
| Cost of Revenue | 5.72B | 1.92B |
| Operating Expenses | 407M | 819M |
| Gross Profit | 2.54B | 1.54B |
| EBITDA | 2.41B | 904M |
| EBIT | 2.13B | 697M |
| Interest Expense | 151M | 64M |
| Net Income | 1.51B | 483M |
| EPS | 3.73 | 6.41 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This comparison will reveal which company operates more efficiently by examining their revenue growth, profit margins, and bottom-line momentum.
Howmet Aerospace Inc. Analysis
Howmet Aerospace’s revenue surged from 5B in 2021 to 8.25B in 2025, showcasing a strong 66% growth over five years. Net income expanded fivefold to 1.51B, reflecting robust profitability gains. Its gross margin of 30.7% and net margin of 18.3% underline efficient cost control. The 2025 jump in EBIT by 36% signals accelerating operational momentum.
IDEX Corporation Analysis
IDEX’s revenue climbed steadily from 2.76B in 2021 to 3.46B in 2025, a 25% increase over five years. Net income rose modestly to 483M, with a net margin of 14%. The company boasts a superior gross margin of 44.5%, yet its net margin contracted by 9.5% recently, suggesting rising expenses. EBIT growth remains sluggish at under 2%, indicating limited operational acceleration.
Growth Momentum vs. Margin Strength
Howmet Aerospace outpaces IDEX with impressive revenue and net income growth, paired with improving margins and strong EBIT expansion. IDEX holds a higher gross margin but faces pressure on net profitability and slower earnings momentum. For investors prioritizing growth and margin improvement, Howmet’s profile appears more compelling.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | Howmet Aerospace Inc. (HWM) | IDEX Corporation (IEX) |
|---|---|---|
| ROE | 28.17% | 12.00% |
| ROIC | 18.19% | 8.65% |
| P/E | 54.93 | 27.73 |
| P/B | 15.47 | 3.33 |
| Current Ratio | 2.13 | 2.86 |
| Quick Ratio | 1.09 | 2.02 |
| D/E (Debt-to-Equity) | 0.57 | 0.45 |
| Debt-to-Assets | 27.28% | 26.29% |
| Interest Coverage | 14.11 | 11.18 |
| Asset Turnover | 0.74 | 0.50 |
| Fixed Asset Turnover | 3.18 | 7.39 |
| Payout ratio | 12.00% | 44.00% |
| Dividend yield | 0.22% | 1.59% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as a company’s DNA, uncovering both hidden risks and signals of operational excellence vital for investment insight.
Howmet Aerospace Inc.
Howmet Aerospace delivers robust profitability with a 28.17% ROE and 18.27% net margin, showcasing operational efficiency. However, its valuation appears stretched, with a P/E of 54.93 and P/B at 15.47, signaling premium pricing. Shareholder returns remain modest with a 0.22% dividend yield, hinting at limited immediate income but stability.
IDEX Corporation
IDEX operates with a balanced profile, posting a 12.0% ROE and a 13.98% net margin, reflecting moderate profitability. Its valuation is more reasonable than Howmet, with a P/E of 27.73 and P/B of 3.33, though still on the high side. The dividend yield of 1.59% offers a steadier income, complemented by prudent capital management.
Premium Valuation vs. Operational Safety
Howmet Aerospace commands a premium valuation backed by strong profitability but offers limited dividend income. IDEX balances moderate returns with a fairer valuation and higher dividend yield. Investors seeking growth may lean toward Howmet; income-focused investors might prefer IDEX’s steadier yield and valuation profile.
Which one offers the Superior Shareholder Reward?
I compare Howmet Aerospace Inc. (HWM) and IDEX Corporation (IEX) on shareholder returns through dividends and buybacks. HWM pays a modest 0.22% dividend yield with a low 12% payout ratio, signaling strong free cash flow reinvestment and sustainable growth. Its free cash flow per share stands at 3.54, supporting buybacks. IEX offers a higher 1.59% dividend yield but pays out 44% of earnings, reducing reinvestment capacity. However, IEX’s robust free cash flow of 8.19 per share funds an intense buyback program, enhancing total returns. Historically, I’ve observed that IEX’s balanced high dividend and aggressive buybacks outperform in stable markets. I conclude IEX delivers a superior total return profile in 2026, combining yield with capital return intensity, while HWM’s conservative model suits risk-averse investors prioritizing growth sustainability.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Howmet Aerospace Inc. and IDEX Corporation, highlighting their financial strengths and valuation nuances:
Howmet Aerospace excels in profitability with top ROE and ROA scores (5 each), signaling efficient asset and equity use. However, it suffers valuation drawbacks with very unfavorable P/E and P/B scores (1 each) and weak DCF (2). IDEX balances moderately high DCF (4), ROE (4), and ROA (4) scores with slightly better valuation metrics (P/E and P/B at 2). Both share a weak debt-to-equity score (2), exposing leverage risks. Overall, IDEX presents a more balanced financial profile; Howmet relies heavily on operational efficiency but trades at a steep premium.
Bankruptcy Risk: Solvency Showdown
Howmet Aerospace’s Altman Z-Score of 12.4 vastly outperforms IDEX’s 5.2, signaling superior long-term solvency and a robust buffer against financial distress in today’s volatile market cycle:
Financial Health: Quality of Operations
Both Howmet Aerospace and IDEX achieve very strong Piotroski F-Scores of 8, underscoring sound profitability, liquidity, and operational efficiency. Neither shows red flags in internal financial health, reflecting disciplined management and solid fundamentals:
How are the two companies positioned?
This section dissects HWM and IEX’s operational DNA by comparing revenue distribution and internal dynamics. The goal is to confront their economic moats and identify the more resilient, sustainable competitive advantage today.
Revenue Segmentation: The Strategic Mix
The following visual comparison dissects how Howmet Aerospace Inc. and IDEX Corporation diversify their income streams and where their primary sector bets lie:
Howmet Aerospace anchors its revenue in the Engine Products Segment with $4.3B in 2025, dwarfing its Fastening Systems at $1.7B. This concentrated mix signals a strong focus on aerospace infrastructure. In contrast, IDEX maintains a balanced portfolio with Health And Science Technologies at $1.3B, Fluid And Metering at $1.2B, and Fire And Safety at $744M. IDEX’s diversification reduces concentration risk and supports cross-sector resilience.
Strengths and Weaknesses Comparison
This table compares the strengths and weaknesses of Howmet Aerospace Inc. and IDEX Corporation based on diversification, profitability, financials, innovation, global presence, and market share:
Howmet Aerospace Inc. Strengths
- Diverse aerospace segments with strong Engine Products and Fastening Systems
- High net margin at 18.27% and ROE of 28.17% indicate robust profitability
- Strong current and quick ratios above 1.0 confirm solid liquidity
- Favorable debt-to-assets ratio at 27.28% and high interest coverage of 14.11x
- Balanced global revenue with significant U.S. and European exposure
IDEX Corporation Strengths
- Well-diversified industrial segments including Health and Science, Fluid Metering, Fire Safety
- Favorable current and quick ratios reflecting strong liquidity
- Moderate net margin of 13.98% with stable WACC below ROIC
- Low debt-to-equity ratio at 0.45 supports financial stability
- Global footprint with steady U.S., Europe, and Asia sales distribution
Howmet Aerospace Inc. Weaknesses
- High P/E at 54.93 and P/B at 15.47 suggest valuation premium risk
- Dividend yield at 0.22% may disappoint income-focused investors
- Neutral asset turnover at 0.74 could indicate room for operational efficiency improvement
IDEX Corporation Weaknesses
- Unfavorable asset turnover at 0.5 indicates lower efficiency in asset use
- Elevated P/E of 27.73 and P/B of 3.33 imply relatively high valuation
- ROE and ROIC only neutral, limiting profitability edge compared to peers
Both companies exhibit favorable overall financial health and diversification but face valuation concerns. Howmet’s higher profitability contrasts with its premium valuation, while IDEX balances steady global presence with operational efficiency challenges. These factors shape their strategic opportunities and risks going forward.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only thing protecting long-term profits from the erosion of competition. Let’s dissect the economic moats of these two industrial players:
Howmet Aerospace Inc.: Engineering Precision with Scale Moat
Howmet’s moat stems from its intangible assets and cost advantage in aerospace components. Its ROIC outpaces WACC by nearly 9%, reflecting efficient capital use and margin stability. New aerospace markets and advanced engineered solutions promise to deepen this moat in 2026.
IDEX Corporation: Diverse Niche Solutions with Innovation Challenges
IDEX relies on product diversification and specialized fluidics technology as its moat. However, its ROIC barely surpasses its WACC, and the trend is declining. While its varied segments offer expansion opportunities, incremental innovation is needed to maintain competitive positioning.
Verdict: Intangible Assets vs. Diversification — Scale Triumphs
Howmet Aerospace possesses a deeper, more sustainable moat, driven by strong capital returns and scale advantages. IDEX’s niche diversification is valuable but currently lacks the profitability momentum. Howmet is better equipped to defend and grow market share.
Which stock offers better returns?
Over the past 12 months, Howmet Aerospace Inc. surged 267%, showing strong acceleration and high volatility, while IDEX Corporation declined nearly 14% despite recent positive momentum.
Trend Comparison
Howmet Aerospace Inc. posted a 267.42% price increase over 12 months, confirming a bullish trend with accelerating gains and notable volatility (48.78 std deviation).
IDEX Corporation experienced a 13.72% price drop over the year, marking a bearish trend despite recent acceleration and moderate volatility (22.27 std deviation).
Howmet Aerospace’s substantial 267% gain clearly outperforms IDEX’s 14% loss, delivering the highest market return over the analyzed period.
Target Prices
Analysts show a positive outlook with solid upside potential for both Howmet Aerospace Inc. and IDEX Corporation.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Howmet Aerospace Inc. | 209 | 290 | 259.63 |
| IDEX Corporation | 220 | 247 | 236.83 |
Howmet Aerospace’s consensus target is about 4% above its current price of 250.21, indicating moderate upside. IDEX’s consensus target exceeds its current 210.41 price by roughly 13%, signaling stronger expected appreciation.
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How do institutions grade them?
Howmet Aerospace Inc. Grades
Below is a summary of recent institutional grades for Howmet Aerospace Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Susquehanna | Maintain | Positive | 2026-02-13 |
| Citigroup | Maintain | Buy | 2026-01-13 |
| B of A Securities | Maintain | Buy | 2025-11-14 |
| JP Morgan | Maintain | Overweight | 2025-11-10 |
| BTIG | Maintain | Buy | 2025-11-03 |
| Goldman Sachs | Maintain | Buy | 2025-11-03 |
| TD Cowen | Maintain | Buy | 2025-10-31 |
| RBC Capital | Maintain | Outperform | 2025-10-31 |
| UBS | Maintain | Neutral | 2025-10-31 |
| Truist Securities | Maintain | Buy | 2025-10-15 |
IDEX Corporation Grades
Below is a summary of recent institutional grades for IDEX Corporation.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Argus Research | Upgrade | Buy | 2026-02-06 |
| RBC Capital | Maintain | Outperform | 2026-02-05 |
| Citigroup | Maintain | Buy | 2026-02-05 |
| DA Davidson | Maintain | Neutral | 2026-02-05 |
| TD Cowen | Maintain | Buy | 2026-02-05 |
| Stifel | Maintain | Buy | 2026-01-23 |
| Citigroup | Maintain | Buy | 2025-12-08 |
| RBC Capital | Maintain | Outperform | 2025-10-30 |
| Stifel | Maintain | Buy | 2025-10-20 |
| Oppenheimer | Maintain | Outperform | 2025-10-07 |
Which company has the best grades?
Both companies receive predominantly positive institutional grades, with frequent “Buy” and “Outperform” ratings. Howmet Aerospace shows consistent Buy-level support, while IDEX benefits from a recent upgrade and multiple Outperform ratings. Investors may interpret IDEX’s upgrade and sustained Outperform signals as slightly stronger momentum.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Howmet Aerospace Inc. (HWM)
- Operates globally in aerospace and transportation industries, facing intense competition from diversified industrial peers.
IDEX Corporation (IEX)
- Serves niche fluid handling and safety markets with diversified segments, but competitive pressures exist in specialized industrial equipment.
2. Capital Structure & Debt
Howmet Aerospace Inc. (HWM)
- Moderate leverage with debt-to-assets at 27.3%, interest coverage strong at 14.1x, but debt-to-equity score flagged as unfavorable.
IDEX Corporation (IEX)
- Slightly lower leverage at 26.3%, interest coverage solid at 10.8x, and debt-to-equity score better, reflecting more prudent capital structure.
3. Stock Volatility
Howmet Aerospace Inc. (HWM)
- Beta at 1.25 indicates above-market volatility, increasing risk in turbulent markets.
IDEX Corporation (IEX)
- Beta near 0.98 suggests stock moves roughly with the market, offering lower volatility risk.
4. Regulatory & Legal
Howmet Aerospace Inc. (HWM)
- Exposure to aerospace and defense regulations globally, with potential compliance costs and trade restrictions.
IDEX Corporation (IEX)
- Faces regulations in fluid handling and safety sectors, but less complex than aerospace, reducing regulatory complexity.
5. Supply Chain & Operations
Howmet Aerospace Inc. (HWM)
- Global manufacturing footprint exposes it to supply chain disruptions, especially in critical aerospace components.
IDEX Corporation (IEX)
- Diverse product lines and manufacturing sites mitigate some risks, but specialized components remain vulnerable.
6. ESG & Climate Transition
Howmet Aerospace Inc. (HWM)
- As aerospace supplier, faces pressure to reduce emissions and improve sustainability in metals and manufacturing.
IDEX Corporation (IEX)
- Focus on industrial and safety products offers ESG opportunities but also exposure to evolving environmental standards.
7. Geopolitical Exposure
Howmet Aerospace Inc. (HWM)
- Significant international presence, including China and Europe, increasing exposure to geopolitical tensions and tariffs.
IDEX Corporation (IEX)
- More US-centric but still with global sales, facing moderate geopolitical risks in supply and market access.
Which company shows a better risk-adjusted profile?
Howmet Aerospace’s most impactful risk lies in heightened stock volatility and global geopolitical exposure. IDEX faces its largest risk in capital structure discipline and competitive pressures in niche markets. IDEX’s lower beta and stronger debt metrics give it a marginally better risk-adjusted profile. Howmet’s elevated valuation multiples and higher beta raise caution despite strong profitability.
Final Verdict: Which stock to choose?
Howmet Aerospace Inc. (HWM) stands out as a powerhouse of operational efficiency and value creation. Its rising ROIC well above cost of capital signals a robust competitive advantage. However, investors should watch its high valuation multiples as a potential risk. HWM suits portfolios targeting aggressive growth with an appetite for premium pricing.
IDEX Corporation (IEX) benefits from a strategic moat rooted in stable cash flows and a solid balance sheet. Though its ROIC trails cost of capital and growth has slowed, its valuation is more reasonable than HWM’s. IEX fits well in growth-at-a-reasonable-price (GARP) portfolios seeking steadier, less volatile exposure.
If you prioritize high growth and market leadership, HWM is the compelling choice due to its superior capital efficiency and profit expansion. However, if you seek better stability and a more conservative valuation, IEX offers a safer profile despite slower momentum. Each presents a distinct analytical scenario aligned with differing risk tolerances.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Howmet Aerospace Inc. and IDEX Corporation to enhance your investment decisions:
