Huntington Ingalls Industries vs L3Harris
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KIRA’s take AI analyst
I put Huntington Ingalls Industries and L3Harris side by side, using each one’s latest annual report. Here is what stands out:
- L3Harris is the larger business, with $21.9B of revenue in fiscal 2025 against $12.5B for Huntington Ingalls Industries, about 1.8 times as much.
- Huntington Ingalls Industries grew revenue faster (8.2%, against 2.5%).
- L3Harris kept more of each dollar of sales as operating profit (9.7% operating margin, against 5.3%).
- L3Harris turned more of its sales into free cash flow (12.3% FCF margin, against 6.4%).
- Huntington Ingalls Industries earned a higher return on the capital invested in it (7.3%, against 5.8%).
- Investors pay more for each dollar of L3Harris’s earnings: a P/E of 26.1x against 16.8x for Huntington Ingalls Industries.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Huntington Ingalls Industries
HII
5/10
Revenue growth5-year growthReturn on capitalReturn on equityNet debt / EBITDA
L3Harris
LHX
5/10
Operating marginNet marginFCF marginPiotroski F-scoreShare count change
Side by side
Best in the row
| Latest fiscal year | HII FY25 | LHX FY25 |
|---|---|---|
| Size | ||
| Market cap | $11.1B | $48.6B |
| Revenue | $12.5B | $21.9B |
| Free cash flow | $794M | $2.7B |
| Net income | $605M | $1.6B |
| Growth | ||
| Revenue growth | 8.2% | 2.5% |
| 5-year growth | 5.9% | 3.7% |
| Share count change | −0.3% | −1.2% |
| Profitability | ||
| Gross margin | — | 25.7% |
| Operating margin | 5.3% | 9.7% |
| Net margin | 4.9% | 7.4% |
| FCF margin | 6.4% | 12.3% |
| Return on capital | 7.3% | 5.8% |
| Return on equity | 12.4% | 8.2% |
| Balance sheet | ||
| Net debt | $1.9B | $10.0B |
| Net debt / EBITDA | 2.0x | 3.0x |
| Dividends and buybacks | $213M | $2.1B |
| Valuation & quality | ||
| P/E | 16.8x | 26.1x |
| Piotroski F-score | 7 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.