AeroVironment, Inc. (AVAV) vs Leonardo DRS, Inc. (DRS)

AeroVironment, Inc. and Leonardo DRS, Inc. are both Aerospace & Defense companies. Leonardo DRS, Inc. is the larger, with a market value of $10.0B against $8.1B — 1.2× the size. AeroVironment, Inc. has negative trailing earnings, so its P/E is not meaningful; Leonardo DRS, Inc. trades at 30.4×. AeroVironment, Inc. grew revenue faster over the last twelve months: 84.4% against 10.5%. Leonardo DRS, Inc. has the higher net margin (8.52% vs −10.1%) and the higher return on invested capital (9.27% vs −3.47%). Across the 20 metrics below, Leonardo DRS, Inc. leads on 16 and AeroVironment, Inc. on 4.

Valuation

Metric AVAV DRS Aerospace & Defense median
P/E n/m 30.43 33.00
P/S 3.78 2.62 3.63
P/B 1.72 3.53 3.24
Price to free cash flow n/m 27.21 34.01
EV/EBITDA 34.74 19.76 18.69
EV/Sales 3.86 2.59 3.94
Earnings yield (2.68%) 3.29% 1.31%
Free cash flow yield (0.61%) 3.68% 0.00%

Profitability

Metric AVAV DRS Aerospace & Defense median
Gross margin 26.47% 24.87% 25.48%
Operating margin (12.61%) 10.53% 4.54%
Net margin (10.13%) 8.52% 2.22%
Free cash flow margin (2.24%) 9.63% 0.00%
Return on equity (4.60%) 11.92% 6.43%
Return on assets (3.57%) 7.78% 2.70%
Return on invested capital (3.47%) 9.27% 1.56%

Growth

Metric AVAV DRS Aerospace & Defense median
Revenue growth (TTM) 84.44% 10.46% 18.43%
EPS growth (last fiscal year) (448.39%) 28.75% —
Revenue growth, 5-year CAGR 38.00% 116.77% 9.62%
Net income growth, 5-year CAGR 0.00% 118.05% 0.00%

Health

Metric AVAV DRS Aerospace & Defense median
Debt to equity 0.17 0.05 0.24
Current ratio 4.26 1.92 2.72
Net debt to EBITDA 0.47 (0.68) 1.12

Dividend

Metric AVAV DRS Aerospace & Defense median
Dividend yield 5.70% — 1.04%
Payout ratio 0.00 0.00 0.00

Size

Metric AVAV DRS Aerospace & Defense median
Market cap 8.08b 10.03b 2.52b

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