HII vs. HWM: Which Stock Is the Better Value Option?

Core Viewpoint - The comparison between Huntington Ingalls (HII) and Howmet (HWM) indicates that HII presents a better value investment opportunity based on various financial metrics [1][7]. Valuation Metrics - HII has a forward P/E ratio of 19.53, while HWM has a significantly higher forward P/E of 54.92 [5]. - The PEG ratio for HII is 1.65, indicating a more favorable valuation relative to its expected EPS growth compared to HWM's PEG ratio of 2.55 [5]. - HII's P/B ratio stands at 2.31, contrasting sharply with HWM's P/B ratio of 15.86, suggesting HII is more aligned with its book value [6]. Investment Outlook - Both HII and HWM hold a Zacks Rank of 2 (Buy), reflecting a positive earnings outlook due to favorable analyst estimate revisions [3]. - Despite both companies having solid earnings prospects, HII's valuation metrics lead to a superior value grade of A, while HWM receives a grade of D [6][7].