AAR Corp. (AIR) vs MDA Space Ltd. (MDA)

AAR Corp. and MDA Space Ltd. are both Aerospace & Defense companies. AAR Corp. and MDA Space Ltd. are of similar size ($4.4B and $4.4B). AAR Corp. trades at the lower P/E: 22.2× against 46.5×. MDA Space Ltd. has the higher net margin (5.68% vs 5.55%) and the lower return on invested capital (5.05% vs 7.10%). Across the 18 metrics below, AAR Corp. leads on 14 and MDA Space Ltd. on 4.

Valuation

Metric AIR MDA Aerospace & Defense median
P/E 22.15 46.46 31.60
P/S 1.24 2.80 3.36
P/B 2.48 2.78 2.99
Price to free cash flow 23.36 n/m 33.23
EV/EBITDA 13.91 16.34 19.00
EV/Sales 1.46 2.78 3.37
Earnings yield 4.51% 2.15% 0.90%
Free cash flow yield 4.28% (4.61%) 0.00%

Profitability

Metric AIR MDA Aerospace & Defense median
Gross margin 19.06% 25.43% 25.95%
Operating margin 8.17% 7.99% 1.21%
Net margin 5.55% 5.68% 2.11%
Free cash flow margin 5.30% (12.91%) 0.00%
Return on equity 12.93% 6.70% 2.67%
Return on assets 6.09% 3.07% 1.90%
Return on invested capital 7.10% 5.05% 0.25%

Growth

Metric AIR MDA Aerospace & Defense median
Revenue growth (TTM) 21.97% — 18.25%
EPS growth (last fiscal year) 1,288.57% 30.24% 24.80%
Revenue growth, 5-year CAGR 14.89% — 9.73%
Net income growth, 5-year CAGR 39.60% — 0.00%

Health

Metric AIR MDA Aerospace & Defense median
Debt to equity 0.50 0.19 0.18
Current ratio 2.83 0.75 2.85
Net debt to EBITDA 2.23 0.84 1.29

Dividend

Metric AIR MDA Aerospace & Defense median
Dividend yield — — 0.87%
Payout ratio — — 0.30

Size

Metric AIR MDA Aerospace & Defense median
Market cap 4.37b 4.43b 1.94b

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