AAR Corp. (AIR) vs Karman Holdings Inc. (KRMN)

AAR Corp. and Karman Holdings Inc. are both Aerospace & Defense companies. AAR Corp. and Karman Holdings Inc. are of similar size ($4.9B and $4.6B). AAR Corp. trades at the lower P/E: 23.8× against 123×. Karman Holdings Inc. grew revenue faster over the last twelve months: 50.2% against 19.0%. Karman Holdings Inc. has the higher net margin (6.31% vs 5.67%) and the lower return on invested capital (5.09% vs 6.97%). Across the 19 metrics below, AAR Corp. leads on 14 and Karman Holdings Inc. on 5.

Valuation

Metric AIR KRMN Aerospace & Defense median
P/E 23.84 123.07 33.00
P/S 1.34 8.02 3.63
P/B 2.61 11.23 3.24
Price to free cash flow 51.00 n/m 34.01
EV/EBITDA 14.85 35.42 18.69
EV/Sales 1.59 9.37 3.94
Earnings yield 4.19% 0.81% 1.31%
Free cash flow yield 1.96% (0.58%) 0.00%

Profitability

Metric AIR KRMN Aerospace & Defense median
Gross margin 18.80% 41.67% 25.48%
Operating margin 8.40% 16.82% 4.54%
Net margin 5.67% 6.31% 2.22%
Free cash flow margin 2.64% (4.63%) 0.00%
Return on equity 12.88% 9.50% 6.43%
Return on assets 6.05% 3.10% 2.70%
Return on invested capital 6.97% 5.09% 1.56%

Growth

Metric AIR KRMN Aerospace & Defense median
Revenue growth (TTM) 18.97% 50.23% 18.43%
EPS growth (last fiscal year) 1,288.57% 62.50% —
Revenue growth, 5-year CAGR 14.89% — 9.62%
Net income growth, 5-year CAGR 39.60% — 0.00%

Health

Metric AIR KRMN Aerospace & Defense median
Debt to equity 0.52 2.01 0.24
Current ratio 2.84 3.56 2.72
Net debt to EBITDA 2.23 4.60 1.12

Dividend

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

Size

Metric AIR KRMN Aerospace & Defense median
Market cap 4.85b 4.64b 2.52b

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