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 $4.9B against $3.9B — 1.2× the size. Firefly Aerospace, Inc. has negative trailing earnings, so its P/E is not meaningful; AAR Corp. trades at 23.8×. Firefly Aerospace, Inc. grew revenue faster over the last twelve months: 179.2% against 19.0%. AAR Corp. has the higher net margin (5.67% vs −129.1%) and the higher return on invested capital (6.97% vs −34.8%). Across the 17 metrics below, AAR Corp. leads on 14 and Firefly Aerospace, Inc. on 3.

Valuation

Metric AIR FLY Aerospace & Defense median
P/E 23.84 n/m 33.00
P/S 1.34 13.73 3.63
P/B 2.61 3.22 3.24
Price to free cash flow 51.00 n/m 34.01
EV/EBITDA 14.85 n/m 18.69
EV/Sales 1.59 11.59 3.94
Earnings yield 4.19% (12.07%) 1.31%
Free cash flow yield 1.96% (8.28%) 0.00%

Profitability

Metric AIR FLY Aerospace & Defense median
Gross margin 18.80% 22.92% 25.48%
Operating margin 8.40% (117.99%) 4.54%
Net margin 5.67% (129.06%) 2.22%
Free cash flow margin 2.64% (113.66%) 0.00%
Return on equity 12.88% (242.95%) 6.43%
Return on assets 6.05% (35.18%) 2.70%
Return on invested capital 6.97% (34.77%) 1.56%

Growth

Metric AIR FLY Aerospace & Defense median
Revenue growth (TTM) 18.97% 179.17% 18.43%
EPS growth (last fiscal year) 1,288.57% 73.21% —
Revenue growth, 5-year CAGR 14.89% — 9.62%
Net income growth, 5-year CAGR 39.60% — 0.00%

Health

Metric AIR FLY Aerospace & Defense median
Debt to equity 0.52 0.02 0.24
Current ratio 2.84 2.73 2.72
Net debt to EBITDA 2.23 2.57 1.12

Dividend

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

Size

Metric AIR FLY Aerospace & Defense median
Market cap 4.85b 3.93b 2.52b

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