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

AeroVironment, Inc. and StandardAero, Inc. are both Aerospace & Defense companies. AeroVironment, Inc. and StandardAero, Inc. are of similar size ($8.1B and $7.4B). AeroVironment, Inc. has negative trailing earnings, so its P/E is not meaningful; StandardAero, Inc. trades at 23.0×. 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 22.97 33.00
P/S 3.78 1.17 3.63
P/B 1.72 2.69 3.24
Price to free cash flow n/m 36.15 34.01
EV/EBITDA 34.74 11.92 18.69
EV/Sales 3.86 1.51 3.94
Earnings yield (2.68%) 4.35% 1.31%
Free cash flow yield (0.61%) 2.77% 0.00%

Profitability

Metric AVAV SARO Aerospace & Defense median
Gross margin 26.47% 15.05% 25.48%
Operating margin (12.61%) 9.46% 4.54%
Net margin (10.13%) 5.12% 2.22%
Free cash flow margin (2.24%) 3.24% 0.00%
Return on equity (4.60%) 12.30% 6.43%
Return on assets (3.57%) 4.86% 2.70%
Return on invested capital (3.47%) 7.63% 1.56%

Growth

Metric AVAV SARO Aerospace & Defense median
Revenue growth (TTM) 84.44% 12.56% 18.43%
EPS growth (last fiscal year) (448.39%) 1,975.00% —
Revenue growth, 5-year CAGR 38.00% — 9.62%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric AVAV SARO Aerospace & Defense median
Debt to equity 0.17 0.84 0.24
Current ratio 4.26 2.13 2.72
Net debt to EBITDA 0.47 2.53 1.12

Dividend

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

Size

Metric AVAV SARO Aerospace & Defense median
Market cap 8.08b 7.39b 2.52b

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