AAR Corp. (AIR) vs Firefly Aerospace, Inc. (FLY)

AAR Corp. and Firefly Aerospace, Inc. are both Aerospace & Defense companies. AAR Corp. is the larger, with a market value of $3.9B against $3.0B — 1.3× the size. Firefly Aerospace, Inc. has negative trailing earnings, so its P/E is not meaningful; AAR Corp. trades at 20.1×. Firefly Aerospace, Inc. grew revenue faster over the last twelve months: 179.2% against 22.0%. AAR Corp. has the higher net margin (5.55% vs −129.1%) and the higher return on invested capital (7.10% vs −34.8%). Across the 17 metrics below, AAR Corp. leads on 13 and Firefly Aerospace, Inc. on 4.

Valuation

Metric AIR FLY Aerospace & Defense median
P/E 20.08 n/m 31.81
P/S 1.12 9.44 3.55
P/B 2.25 2.22 2.59
Price to free cash flow 21.18 n/m 31.99
EV/EBITDA 12.81 n/m 18.08
EV/Sales 1.34 7.30 3.37
Earnings yield 4.98% (17.55%) 1.38%
Free cash flow yield 4.72% (12.04%) 0.21%

Profitability

Metric AIR FLY Aerospace & Defense median
Gross margin 19.06% 22.92% 25.48%
Operating margin 8.17% (117.99%) 4.54%
Net margin 5.55% (129.06%) 2.22%
Free cash flow margin 5.30% (113.66%) 1.43%
Return on equity 12.93% (242.95%) 6.43%
Return on assets 6.09% (35.18%) 2.70%
Return on invested capital 7.10% (34.77%) 1.56%

Growth

Metric AIR FLY Aerospace & Defense median
Revenue growth (TTM) 21.97% 179.17% 18.43%
EPS growth (last fiscal year) 1,288.57% 73.21% 24.27%
Revenue growth, 5-year CAGR 14.89% — 9.73%
Net income growth, 5-year CAGR 39.60% — 0.00%

Health

Metric AIR FLY Aerospace & Defense median
Debt to equity 0.50 0.02 0.24
Current ratio 2.83 2.73 2.72
Net debt to EBITDA 2.23 2.57 1.12

Dividend

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

Size

Metric AIR FLY Aerospace & Defense median
Market cap 3.94b 2.98b 2.19b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack