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. and Merlin Inc are of similar size ($113.2M and $111.9M). Merlin Inc has negative trailing earnings, so its P/E is not meaningful; Coda Octopus Group Inc. trades at 22.6×. 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 22.57 n/m 31.81
P/S 3.92 14.01 3.55
P/B 1.79 n/m 2.59
Price to free cash flow 19.70 n/m 31.99
EV/EBITDA 11.29 0.64 18.08
EV/Sales 2.82 (7.16) 3.37
Earnings yield 4.43% (279.92%) 1.38%
Free cash flow yield 5.08% (67.90%) 0.21%

Profitability

Metric CODA MRLN Aerospace & Defense median
Gross margin 66.11% 26.34% 25.48%
Operating margin 20.08% (1,156.90%) 4.54%
Net margin 17.63% (3,463.45%) 2.22%
Free cash flow margin 19.88% (951.07%) 1.43%
Return on equity 8.41% 0.00% 6.43%
Return on assets 7.71% (239.99%) 2.70%
Return on invested capital 11.57% 0.00% 1.56%

Growth

Metric CODA MRLN Aerospace & Defense median
Revenue growth (TTM) 17.48% — 18.43%
EPS growth (last fiscal year) 15.62% 85.03% 24.27%
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 0.24
Current ratio 10.06 14.67 2.72
Net debt to EBITDA (4.84) 0.24 1.12

Dividend

Metric CODA MRLN Aerospace & Defense median
Dividend yield — — 0.90%
Payout ratio — — 0.32

Size

Metric CODA MRLN Aerospace & Defense median
Market cap 111.93m 113.19m 2.19b

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