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

AeroVironment, Inc. and Loar Holdings Inc. are both Aerospace & Defense companies. AeroVironment, Inc. is the larger, with a market value of $8.1B against $6.1B — 1.3× the size. AeroVironment, Inc. has negative trailing earnings, so its P/E is not meaningful; Loar Holdings Inc. trades at 90.3×. AeroVironment, Inc. grew revenue faster over the last twelve months: 84.4% against 29.8%. Loar Holdings Inc. has the higher net margin (11.6% vs −10.1%) and the higher return on invested capital (3.95% 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 90.33 33.00
P/S 3.78 10.39 3.63
P/B 1.72 5.08 3.24
Price to free cash flow n/m 57.44 34.01
EV/EBITDA 34.74 35.43 18.69
EV/Sales 3.86 11.81 3.94
Earnings yield (2.68%) 1.11% 1.31%
Free cash flow yield (0.61%) 1.74% 0.00%

Profitability

Metric AVAV LOAR Aerospace & Defense median
Gross margin 26.47% 52.18% 25.48%
Operating margin (12.61%) 21.86% 4.54%
Net margin (10.13%) 11.60% 2.22%
Free cash flow margin (2.24%) 18.09% 0.00%
Return on equity (4.60%) 5.84% 6.43%
Return on assets (3.57%) 3.56% 2.70%
Return on invested capital (3.47%) 3.95% 1.56%

Growth

Metric AVAV LOAR Aerospace & Defense median
Revenue growth (TTM) 84.44% 29.76% 18.43%
EPS growth (last fiscal year) (448.39%) 212.50% —
Revenue growth, 5-year CAGR 38.00% — 9.62%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric AVAV LOAR Aerospace & Defense median
Debt to equity 0.17 0.79 0.24
Current ratio 4.26 4.91 2.72
Net debt to EBITDA 0.47 4.01 1.12

Dividend

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

Size

Metric AVAV LOAR Aerospace & Defense median
Market cap 8.08b 6.13b 2.52b

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