AAR Corp. (AIR) vs Astronics Corporation (ATRO)

AAR Corp. and Astronics Corporation are both Aerospace & Defense companies. AAR Corp. is the larger, with a market value of $4.0B against $2.7B — 1.5× the size. AAR Corp. trades at the lower P/E: 20.1× against 34.2×. AAR Corp. grew revenue faster over the last twelve months: 22.0% against 14.5%. Astronics Corporation has the higher net margin (8.40% vs 5.55%) and the higher return on invested capital (15.8% vs 7.10%). Across the 22 metrics below, AAR Corp. leads on 14 and Astronics Corporation on 8.

Valuation

Metric AIR ATRO Aerospace & Defense median
P/E 20.13 34.20 31.91
P/S 1.13 2.88 3.62
P/B 2.25 13.69 2.59
Price to free cash flow 21.24 44.73 31.60
EV/EBITDA 12.84 19.80 17.80
EV/Sales 1.35 3.20 3.56
Earnings yield 4.97% 2.92% 1.33%
Free cash flow yield 4.71% 2.24% 0.18%

Profitability

Metric AIR ATRO Aerospace & Defense median
Gross margin 19.06% 32.54% 25.48%
Operating margin 8.17% 13.40% 4.54%
Net margin 5.55% 8.40% 2.22%
Free cash flow margin 5.30% 6.44% 0.00%
Return on equity 12.93% 33.68% 6.03%
Return on assets 6.09% 11.24% 2.70%
Return on invested capital 7.10% 15.79% 1.56%

Growth

Metric AIR ATRO Aerospace & Defense median
Revenue growth (TTM) 21.97% 14.49% 18.43%
EPS growth (last fiscal year) 1,288.57% 276.10% 24.27%
Revenue growth, 5-year CAGR 14.89% 11.40% 9.73%
Net income growth, 5-year CAGR 39.60% 0.00% 0.00%

Health

Metric AIR ATRO Aerospace & Defense median
Debt to equity 0.50 1.57 0.24
Current ratio 2.83 2.97 2.72
Net debt to EBITDA 2.23 3.12 1.12

Dividend

Metric AIR ATRO Aerospace & Defense median
Dividend yield — — 0.92%
Payout ratio — — 0.33

Size

Metric AIR ATRO Aerospace & Defense median
Market cap 4.04b 2.72b 2.23b

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