AAR Corp. (AIR) vs Intuitive Machines, Inc. (LUNR)

AAR Corp. and Intuitive Machines, Inc. are both Aerospace & Defense companies. AAR Corp. is the larger, with a market value of $3.9B against $2.7B — 1.5× the size. Intuitive Machines, Inc. has negative trailing earnings, so its P/E is not meaningful; AAR Corp. trades at 20.1×. Intuitive Machines, Inc. grew revenue faster over the last twelve months: 116.9% against 22.0%. AAR Corp. has the higher net margin (5.55% vs −26.8%) and the higher return on invested capital (7.10% vs 0.00%). Across the 16 metrics below, AAR Corp. leads on 13 and Intuitive Machines, Inc. on 3.

Valuation

Metric AIR LUNR Aerospace & Defense median
P/E 20.08 n/m 31.81
P/S 1.12 3.55 3.55
P/B 2.25 n/m 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 3.47 3.37
Earnings yield 4.98% (8.85%) 1.38%
Free cash flow yield 4.72% (10.78%) 0.21%

Profitability

Metric AIR LUNR Aerospace & Defense median
Gross margin 19.06% 16.35% 25.48%
Operating margin 8.17% (27.51%) 4.54%
Net margin 5.55% (26.77%) 2.22%
Free cash flow margin 5.30% (38.31%) 1.43%
Return on equity 12.93% 39.21% 6.43%
Return on assets 6.09% (11.10%) 2.70%
Return on invested capital 7.10% 0.00% 1.56%

Growth

Metric AIR LUNR Aerospace & Defense median
Revenue growth (TTM) 21.97% 116.89% 18.43%
EPS growth (last fiscal year) 1,288.57% 84.23% 24.27%
Revenue growth, 5-year CAGR 14.89% — 9.73%
Net income growth, 5-year CAGR 39.60% — 0.00%

Health

Metric AIR LUNR Aerospace & Defense median
Debt to equity 0.50 (1.16) 0.24
Current ratio 2.83 1.66 2.72
Net debt to EBITDA 2.23 3.02 1.12

Dividend

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

Size

Metric AIR LUNR Aerospace & Defense median
Market cap 3.94b 2.65b 2.19b

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