AAR Corp. (AIR) vs BETA Technologies, Inc. (BETA)

AAR Corp. and BETA Technologies, Inc. are both Aerospace & Defense companies. BETA Technologies, Inc. is the larger, with a market value of $5.7B against $4.2B — 1.3× the size. BETA Technologies, Inc. has negative trailing earnings, so its P/E is not meaningful; AAR Corp. trades at 21.2×. BETA Technologies, Inc. grew revenue faster over the last twelve months: 94.6% against 22.0%. AAR Corp. has the higher net margin (5.55% vs −1,340.3%) and the higher return on invested capital (7.10% vs −99.2%). Across the 17 metrics below, AAR Corp. leads on 12 and BETA Technologies, Inc. on 5.

Valuation

Metric AIR BETA Aerospace & Defense median
P/E 21.23 n/m 28.48
P/S 1.19 105.60 2.95
P/B 2.37 3.73 2.68
Price to free cash flow 22.38 n/m 31.70
EV/EBITDA 13.42 n/m 16.85
EV/Sales 1.41 83.79 2.74
Earnings yield 4.71% (15.31%) 0.89%
Free cash flow yield 4.47% (8.47%) 0.00%

Profitability

Metric AIR BETA Aerospace & Defense median
Gross margin 19.06% 62.49% 26.41%
Operating margin 8.17% (1,032.98%) 3.69%
Net margin 5.55% (1,340.32%) 2.74%
Free cash flow margin 5.30% (894.23%) 0.00%
Return on equity 12.93% 1,958.90% 4.44%
Return on assets 6.09% (49.09%) 1.90%
Return on invested capital 7.10% (99.23%) 0.26%

Growth

Metric AIR BETA Aerospace & Defense median
Revenue growth (TTM) 21.97% 94.55% 18.03%
EPS growth (last fiscal year) 1,288.57% (89.81%) 24.80%
Revenue growth, 5-year CAGR 14.89% — 9.73%
Net income growth, 5-year CAGR 39.60% — 0.00%

Health

Metric AIR BETA Aerospace & Defense median
Debt to equity 0.50 0.11 0.20
Current ratio 2.83 11.51 2.85
Net debt to EBITDA 2.23 4.36 1.29

Dividend

Metric AIR BETA Aerospace & Defense median
Dividend yield — — 0.91%
Payout ratio — — 0.30

Size

Metric AIR BETA Aerospace & Defense median
Market cap 4.20b 5.65b 1.78b

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