AAR Corp. (AIR) vs VSE Corporation (VSEC)

AAR Corp. and VSE Corporation are both Aerospace & Defense companies. AAR Corp. and VSE Corporation are of similar size ($5.1B and $4.9B). AAR Corp. trades at the lower P/E: 23.8× against 57.6×. VSE Corporation grew revenue faster over the last twelve months: 41.6% against 19.0%. AAR Corp. has the higher net margin (5.67% vs 5.53%) and the higher return on invested capital (6.97% vs 2.04%). Across the 21 metrics below, AAR Corp. leads on 15 and VSE Corporation on 6.

Valuation

Metric AIR VSEC Aerospace & Defense median
P/E 23.84 57.59 33.00
P/S 1.34 4.13 3.63
P/B 2.61 1.91 3.24
Price to free cash flow 51.00 n/m 34.01
EV/EBITDA 14.85 35.43 18.69
EV/Sales 1.59 4.78 3.94
Earnings yield 4.19% 1.74% 1.31%
Free cash flow yield 1.96% (0.02%) 0.00%

Profitability

Metric AIR VSEC Aerospace & Defense median
Gross margin 18.80% 15.62% 25.48%
Operating margin 8.40% 9.15% 4.54%
Net margin 5.67% 5.53% 2.22%
Free cash flow margin 2.64% (0.08%) 0.00%
Return on equity 12.88% 3.84% 6.43%
Return on assets 6.05% 2.50% 2.70%
Return on invested capital 6.97% 2.04% 1.56%

Growth

Metric AIR VSEC Aerospace & Defense median
Revenue growth (TTM) 18.97% 41.55% 18.43%
EPS growth (last fiscal year) 1,288.57% 24.14% —
Revenue growth, 5-year CAGR 14.89% 10.95% 9.62%
Net income growth, 5-year CAGR 39.60% 0.00% 0.00%

Health

Metric AIR VSEC Aerospace & Defense median
Debt to equity 0.52 0.32 0.24
Current ratio 2.84 3.77 2.72
Net debt to EBITDA 2.23 1.71 1.12

Dividend

Metric AIR VSEC Aerospace & Defense median
Dividend yield — 0.59% 1.04%
Payout ratio 0.00 0.15 0.00

Size

Metric AIR VSEC Aerospace & Defense median
Market cap 4.85b 5.06b 2.52b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack