Leonardo DRS, Inc. (DRS) vs FTAI Aviation Ltd. (FTAI)

Leonardo DRS, Inc. and FTAI Aviation Ltd. are both Aerospace & Defense companies. FTAI Aviation Ltd. is the larger, with a market value of $18.2B against $10.0B — 1.8× the size. Leonardo DRS, Inc. trades at the lower P/E: 30.4× against 37.6×. FTAI Aviation Ltd. grew revenue faster over the last twelve months: 45.3% against 10.5%. FTAI Aviation Ltd. has the higher net margin (15.3% vs 8.52%) and the lower return on invested capital (8.84% vs 9.27%). Across the 22 metrics below, Leonardo DRS, Inc. leads on 13 and FTAI Aviation Ltd. on 9.

Valuation

Metric DRS FTAI Aerospace & Defense median
P/E 30.43 37.57 33.00
P/S 2.62 5.77 3.63
P/B 3.53 44.46 3.24
Price to free cash flow 27.21 29.81 34.01
EV/EBITDA 19.76 21.03 18.69
EV/Sales 2.59 6.77 3.94
Earnings yield 3.29% 2.66% 1.31%
Free cash flow yield 3.68% 3.35% 0.00%

Profitability

Metric DRS FTAI Aerospace & Defense median
Gross margin 24.87% 39.23% 25.48%
Operating margin 10.53% 23.93% 4.54%
Net margin 8.52% 15.34% 2.22%
Free cash flow margin 9.63% 19.36% 0.00%
Return on equity 11.92% 167.93% 6.43%
Return on assets 7.78% 11.12% 2.70%
Return on invested capital 9.27% 8.84% 1.56%

Growth

Metric DRS FTAI Aerospace & Defense median
Revenue growth (TTM) 10.46% 45.26% 18.43%
EPS growth (last fiscal year) 28.75% 1,537.50% —
Revenue growth, 5-year CAGR 116.77% 53.12% 9.62%
Net income growth, 5-year CAGR 118.05% 0.00% 0.00%

Health

Metric DRS FTAI Aerospace & Defense median
Debt to equity 0.05 8.55 0.24
Current ratio 1.92 5.28 2.72
Net debt to EBITDA (0.68) 3.08 1.12

Dividend

Metric DRS FTAI Aerospace & Defense median
Dividend yield — 1.89% 1.04%
Payout ratio 0.00 1.58 0.00

Size

Metric DRS FTAI Aerospace & Defense median
Market cap 10.03b 18.16b 2.52b

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