AeroVironment, Inc. (AVAV) vs StandardAero, Inc. (SARO)

AeroVironment, Inc. and StandardAero, Inc. are both Aerospace & Defense companies. StandardAero, Inc. is the larger, with a market value of $8.4B against $6.3B — 1.3× the size. AeroVironment, Inc. has negative trailing earnings, so its P/E is not meaningful; StandardAero, Inc. trades at 25.5×. AeroVironment, Inc. grew revenue faster over the last twelve months: 84.4% against 12.6%. StandardAero, Inc. has the higher net margin (5.12% vs −10.1%) and the higher return on invested capital (7.63% vs −3.47%). Across the 18 metrics below, StandardAero, Inc. leads on 12 and AeroVironment, Inc. on 6.

Valuation

Metric AVAV SARO Aerospace & Defense median
P/E n/m 25.53 31.60
P/S 3.08 1.30 3.36
P/B 1.40 2.99 2.99
Price to free cash flow n/m 40.17 33.23
EV/EBITDA 28.45 12.95 19.00
EV/Sales 3.16 1.64 3.37
Earnings yield (3.29%) 3.92% 0.90%
Free cash flow yield (0.75%) 2.49% 0.00%

Profitability

Metric AVAV SARO Aerospace & Defense median
Gross margin 26.47% 15.05% 25.95%
Operating margin (12.61%) 9.46% 1.21%
Net margin (10.13%) 5.12% 2.11%
Free cash flow margin (2.24%) 3.24% 0.00%
Return on equity (4.60%) 12.30% 2.67%
Return on assets (3.57%) 4.86% 1.90%
Return on invested capital (3.47%) 7.63% 0.25%

Growth

Metric AVAV SARO Aerospace & Defense median
Revenue growth (TTM) 84.44% 12.56% 18.25%
EPS growth (last fiscal year) (448.39%) 1,975.00% 24.80%
Revenue growth, 5-year CAGR 38.00% — 9.73%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric AVAV SARO Aerospace & Defense median
Debt to equity 0.17 0.84 0.18
Current ratio 4.26 2.13 2.85
Net debt to EBITDA 0.47 2.53 1.29

Dividend

Metric AVAV SARO Aerospace & Defense median
Dividend yield — — 0.87%
Payout ratio — — 0.30

Size

Metric AVAV SARO Aerospace & Defense median
Market cap 6.28b 8.35b 1.94b

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