AeroVironment, Inc. (AVAV) vs Loar Holdings Inc. (LOAR)

AeroVironment, Inc. and Loar Holdings Inc. are both Aerospace & Defense companies. Loar Holdings Inc. is the larger, with a market value of $6.8B against $5.2B — 1.3× the size. AeroVironment, Inc. has negative trailing earnings, so its P/E is not meaningful; Loar Holdings Inc. trades at 113×. AeroVironment, Inc. grew revenue faster over the last twelve months: 84.4% against 33.8%. Loar Holdings Inc. has the higher net margin (9.44% vs −10.1%) and the higher return on invested capital (4.51% vs −3.47%). Across the 18 metrics below, Loar Holdings Inc. leads on 11 and AeroVironment, Inc. on 7.

Valuation

Metric AVAV LOAR Aerospace & Defense median
P/E n/m 113.31 28.48
P/S 2.55 10.69 2.95
P/B 1.16 5.56 2.68
Price to free cash flow n/m 57.29 31.70
EV/EBITDA 23.69 38.83 16.85
EV/Sales 2.63 11.93 2.74
Earnings yield (3.97%) 0.88% 0.89%
Free cash flow yield (0.90%) 1.75% 0.00%

Profitability

Metric AVAV LOAR Aerospace & Defense median
Gross margin 26.47% 52.63% 26.41%
Operating margin (12.61%) 22.86% 3.69%
Net margin (10.13%) 9.44% 2.74%
Free cash flow margin (2.24%) 18.65% 0.00%
Return on equity (4.60%) 5.04% 4.44%
Return on assets (3.57%) 3.09% 1.90%
Return on invested capital (3.47%) 4.51% 0.26%

Growth

Metric AVAV LOAR Aerospace & Defense median
Revenue growth (TTM) 84.44% 33.82% 18.03%
EPS growth (last fiscal year) (448.39%) 212.50% 24.80%
Revenue growth, 5-year CAGR 38.00% — 9.73%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric AVAV LOAR Aerospace & Defense median
Debt to equity 0.17 0.78 0.20
Current ratio 4.26 5.38 2.85
Net debt to EBITDA 0.47 4.01 1.29

Dividend

Metric AVAV LOAR Aerospace & Defense median
Dividend yield — — 0.91%
Payout ratio — — 0.30

Size

Metric AVAV LOAR Aerospace & Defense median
Market cap 5.19b 6.84b 1.78b

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