Coda Octopus Group Inc. (CODA) vs Merlin Inc (MRLN)

Coda Octopus Group Inc. and Merlin Inc are both Aerospace & Defense companies. Coda Octopus Group Inc. is the larger, with a market value of $90.7M against $78.3M — 1.2× the size. Merlin Inc has negative trailing earnings, so its P/E is not meaningful; Coda Octopus Group Inc. trades at 18.5×. Coda Octopus Group Inc. has the higher net margin (17.6% vs −3,463.5%) and the higher return on invested capital (11.6% vs 0.00%). Across the 15 metrics below, Coda Octopus Group Inc. leads on 11 and Merlin Inc on 4.

Valuation

Metric CODA MRLN Aerospace & Defense median
P/E 18.55 n/m 28.48
P/S 3.22 9.93 2.95
P/B 1.47 n/m 2.68
Price to free cash flow 16.19 n/m 31.70
EV/EBITDA 8.50 1.01 16.85
EV/Sales 2.12 (11.24) 2.74
Earnings yield 5.39% (394.76%) 0.89%
Free cash flow yield 6.18% (94.27%) 0.00%

Profitability

Metric CODA MRLN Aerospace & Defense median
Gross margin 66.11% 26.34% 26.41%
Operating margin 20.08% (1,156.90%) 3.69%
Net margin 17.63% (3,463.45%) 2.74%
Free cash flow margin 19.88% (936.31%) 0.00%
Return on equity 8.41% 0.00% 4.44%
Return on assets 7.71% (239.99%) 1.90%
Return on invested capital 11.57% 0.00% 0.26%

Growth

Metric CODA MRLN Aerospace & Defense median
Revenue growth (TTM) 17.48% — 18.03%
EPS growth (last fiscal year) 15.62% 85.03% 24.80%
Revenue growth, 5-year CAGR 5.79% — 9.73%
Net income growth, 5-year CAGR 4.31% — 0.00%

Health

Metric CODA MRLN Aerospace & Defense median
Debt to equity 0.00 0.00 0.20
Current ratio 10.06 14.67 2.85
Net debt to EBITDA (4.84) 0.24 1.29

Dividend

Metric CODA MRLN Aerospace & Defense median
Dividend yield — — 0.91%
Payout ratio — — 0.30

Size

Metric CODA MRLN Aerospace & Defense median
Market cap 90.72m 78.34m 1.78b

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