AAR Corp. (AIR) vs Loar Holdings Inc. (LOAR)

AAR Corp. and Loar Holdings Inc. are both Aerospace & Defense companies. Loar Holdings Inc. is the larger, with a market value of $6.1B against $4.9B — 1.3× the size. AAR Corp. trades at the lower P/E: 23.8× against 90.3×. Loar Holdings Inc. grew revenue faster over the last twelve months: 29.8% against 19.0%. Loar Holdings Inc. has the higher net margin (11.6% vs 5.67%) and the lower return on invested capital (3.95% vs 6.97%). Across the 20 metrics below, AAR Corp. leads on 14 and Loar Holdings Inc. on 6.

Valuation

Metric AIR LOAR Aerospace & Defense median
P/E 23.84 90.33 33.00
P/S 1.34 10.39 3.63
P/B 2.61 5.08 3.24
Price to free cash flow 51.00 57.44 34.01
EV/EBITDA 14.85 35.43 18.69
EV/Sales 1.59 11.81 3.94
Earnings yield 4.19% 1.11% 1.31%
Free cash flow yield 1.96% 1.74% 0.00%

Profitability

Metric AIR LOAR Aerospace & Defense median
Gross margin 18.80% 52.18% 25.48%
Operating margin 8.40% 21.86% 4.54%
Net margin 5.67% 11.60% 2.22%
Free cash flow margin 2.64% 18.09% 0.00%
Return on equity 12.88% 5.84% 6.43%
Return on assets 6.05% 3.56% 2.70%
Return on invested capital 6.97% 3.95% 1.56%

Growth

Metric AIR LOAR Aerospace & Defense median
Revenue growth (TTM) 18.97% 29.76% 18.43%
EPS growth (last fiscal year) 1,288.57% 212.50% —
Revenue growth, 5-year CAGR 14.89% — 9.62%
Net income growth, 5-year CAGR 39.60% — 0.00%

Health

Metric AIR LOAR Aerospace & Defense median
Debt to equity 0.52 0.79 0.24
Current ratio 2.84 4.91 2.72
Net debt to EBITDA 2.23 4.01 1.12

Dividend

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

Size

Metric AIR LOAR Aerospace & Defense median
Market cap 4.85b 6.13b 2.52b

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