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

Archer Aviation Inc. and AAR Corp. are both Aerospace & Defense companies. AAR Corp. is the larger, with a market value of $3.9B against $3.3B — 1.2× the size. Archer Aviation Inc. has negative trailing earnings, so its P/E is not meaningful; AAR Corp. trades at 20.1×. AAR Corp. has the higher net margin (5.55% vs 0.00%) and the higher return on invested capital (7.10% 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 20.08 31.81
P/S n/m 1.12 3.55
P/B 1.66 2.25 2.59
Price to free cash flow n/m 21.18 31.99
EV/EBITDA n/m 12.81 18.08
EV/Sales n/m 1.34 3.37
Earnings yield (26.54%) 4.98% 1.38%
Free cash flow yield (21.57%) 4.72% 0.21%

Profitability

Metric ACHR AIR Aerospace & Defense median
Gross margin 0.00% 19.06% 25.48%
Operating margin 0.00% 8.17% 4.54%
Net margin 0.00% 5.55% 2.22%
Free cash flow margin 0.00% 5.30% 1.43%
Return on equity (44.47%) 12.93% 6.43%
Return on assets (38.52%) 6.09% 2.70%
Return on invested capital (126.95%) 7.10% 1.56%

Growth

Metric ACHR AIR Aerospace & Defense median
Revenue growth (TTM) — 21.97% 18.43%
EPS growth (last fiscal year) 30.28% 1,288.57% 24.27%
Revenue growth, 5-year CAGR — 14.89% 9.73%
Net income growth, 5-year CAGR 0.00% 39.60% 0.00%

Health

Metric ACHR AIR Aerospace & Defense median
Debt to equity 0.06 0.50 0.24
Current ratio 10.21 2.83 2.72
Net debt to EBITDA 2.62 2.23 1.12

Dividend

Metric ACHR AIR Aerospace & Defense median
Dividend yield — — 0.90%
Payout ratio — — 0.32

Size

Metric ACHR AIR Aerospace & Defense median
Market cap 3.29b 3.94b 2.19b

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