Archer Aviation Inc. (ACHR) vs AAR Corp. (AIR)

Archer Aviation Inc. and AAR Corp. are both Aerospace & Defense companies. Archer Aviation Inc. and AAR Corp. are of similar size ($4.9B and $4.4B). Archer Aviation Inc. has negative trailing earnings, so its P/E is not meaningful; AAR Corp. trades at 23.8×. AAR Corp. has the higher net margin (5.67% vs 0.00%) and the higher return on invested capital (6.97% vs −127.0%). Across the 15 metrics below, AAR Corp. leads on 12 and Archer Aviation Inc. on 3.

Valuation

Metric ACHR AIR Aerospace & Defense median
P/E n/m 23.84 33.00
P/S n/m 1.34 3.63
P/B 2.29 2.61 3.24
Price to free cash flow n/m 51.00 34.01
EV/EBITDA n/m 14.85 18.69
EV/Sales n/m 1.59 3.94
Earnings yield (19.25%) 4.19% 1.31%
Free cash flow yield (15.65%) 1.96% 0.00%

Profitability

Metric ACHR AIR Aerospace & Defense median
Gross margin 0.00% 18.80% 25.48%
Operating margin 0.00% 8.40% 4.54%
Net margin 0.00% 5.67% 2.22%
Free cash flow margin 0.00% 2.64% 0.00%
Return on equity (44.47%) 12.88% 6.43%
Return on assets (38.52%) 6.05% 2.70%
Return on invested capital (126.95%) 6.97% 1.56%

Growth

Metric ACHR AIR Aerospace & Defense median
Revenue growth (TTM) — 18.97% 18.43%
EPS growth (last fiscal year) 30.28% 1,288.57% —
Revenue growth, 5-year CAGR — 14.89% 9.62%
Net income growth, 5-year CAGR 0.00% 39.60% 0.00%

Health

Metric ACHR AIR Aerospace & Defense median
Debt to equity 0.06 0.52 0.24
Current ratio 10.21 2.84 2.72
Net debt to EBITDA 2.62 2.23 1.12

Dividend

Metric ACHR AIR Aerospace & Defense median
Dividend yield — — 1.04%
Payout ratio 0.00 0.00 0.00

Size

Metric ACHR AIR Aerospace & Defense median
Market cap 4.43b 4.85b 2.52b

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