Cadre Holdings, Inc. (CDRE) vs Red Cat Holdings, Inc. (RCAT)

Cadre Holdings, Inc. and Red Cat Holdings, Inc. are both Aerospace & Defense companies. Cadre Holdings, Inc. and Red Cat Holdings, Inc. are of similar size ($1.1B and $1.1B). Red Cat Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Cadre Holdings, Inc. trades at 30.3×. Red Cat Holdings, Inc. grew revenue faster over the last twelve months: 1,977.5% against 19.7%. Cadre Holdings, Inc. has the higher net margin (5.26% vs −136.3%) and the higher return on invested capital (6.51% vs −45.8%). Across the 19 metrics below, Cadre Holdings, Inc. leads on 14 and Red Cat Holdings, Inc. on 5.

Valuation

Metric CDRE RCAT Aerospace & Defense median
P/E 30.33 n/m 33.00
P/S 1.65 12.74 3.63
P/B 3.26 1.93 3.24
Price to free cash flow 14.45 n/m 34.01
EV/EBITDA 14.77 n/m 18.69
EV/Sales 2.11 8.32 3.94
Earnings yield 3.30% (12.16%) 1.31%
Free cash flow yield 6.92% (17.30%) 0.00%

Profitability

Metric CDRE RCAT Aerospace & Defense median
Gross margin 41.79% 9.75% 25.48%
Operating margin 10.07% (150.15%) 4.54%
Net margin 5.26% (136.27%) 2.22%
Free cash flow margin 11.40% (220.44%) 0.00%
Return on equity 10.62% (34.40%) 6.43%
Return on assets 4.21% (30.05%) 2.70%
Return on invested capital 6.51% (45.82%) 1.56%

Growth

Metric CDRE RCAT Aerospace & Defense median
Revenue growth (TTM) 19.74% 1,977.49% 18.43%
EPS growth (last fiscal year) 13.33% (28.95%) —
Revenue growth, 5-year CAGR 8.57% 52.12% 9.62%
Net income growth, 5-year CAGR 2.80% 0.00% 0.00%

Health

Metric CDRE RCAT Aerospace & Defense median
Debt to equity 1.08 0.00 0.24
Current ratio 2.14 14.86 2.72
Net debt to EBITDA 2.05 2.60 1.12

Dividend

Metric CDRE RCAT Aerospace & Defense median
Dividend yield 0.93% — 1.04%
Payout ratio 0.40 0.00 0.00

Size

Metric CDRE RCAT Aerospace & Defense median
Market cap 1.12b 1.05b 2.52b

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