AAR Corp. (AIR) vs Moog Inc. (MOG.B)

AAR Corp. and Moog Inc. are both Aerospace & Defense companies. AAR Corp. is the larger, with a market value of $4.9B against $3.7B — 1.3× the size. AAR Corp. trades at the lower P/E: 23.8× against 33.0×. AAR Corp. grew revenue faster over the last twelve months: 19.0% against 15.8%. Moog Inc. has the higher net margin (8.73% vs 5.67%) and the higher return on invested capital (10.5% vs 6.97%). Across the 22 metrics below, Moog Inc. leads on 12 and AAR Corp. on 10.

Valuation

Metric AIR MOG.B Aerospace & Defense median
P/E 23.84 33.00 33.00
P/S 1.34 2.88 3.63
P/B 2.61 5.60 3.24
Price to free cash flow 51.00 35.21 34.01
EV/EBITDA 14.85 21.03 18.69
EV/Sales 1.59 3.08 3.94
Earnings yield 4.19% 3.03% 1.31%
Free cash flow yield 1.96% 2.84% 0.00%

Profitability

Metric AIR MOG.B Aerospace & Defense median
Gross margin 18.80% 28.20% 25.48%
Operating margin 8.40% 11.93% 4.54%
Net margin 5.67% 8.73% 2.22%
Free cash flow margin 2.64% 8.18% 0.00%
Return on equity 12.88% 18.11% 6.43%
Return on assets 6.05% 8.23% 2.70%
Return on invested capital 6.97% 10.52% 1.56%

Growth

Metric AIR MOG.B Aerospace & Defense median
Revenue growth (TTM) 18.97% 15.81% 18.43%
EPS growth (last fiscal year) 1,288.57% 14.53% —
Revenue growth, 5-year CAGR 14.89% 6.00% 9.62%
Net income growth, 5-year CAGR 39.60% 91.17% 0.00%

Health

Metric AIR MOG.B Aerospace & Defense median
Debt to equity 0.52 0.41 0.24
Current ratio 2.84 2.09 2.72
Net debt to EBITDA 2.23 1.75 1.12

Dividend

Metric AIR MOG.B Aerospace & Defense median
Dividend yield — 0.93% 1.04%
Payout ratio 0.00 0.21 0.00

Size

Metric AIR MOG.B Aerospace & Defense median
Market cap 4.85b 3.66b 2.52b

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