Leonardo DRS, Inc. (DRS) vs Loar Holdings Inc. (LOAR)

Leonardo DRS, Inc. and Loar Holdings Inc. are both Aerospace & Defense companies. Leonardo DRS, Inc. is the larger, with a market value of $10.4B against $6.4B — 1.6× the size. Leonardo DRS, Inc. trades at the lower P/E: 28.0× against 94.9×. Loar Holdings Inc. grew revenue faster over the last twelve months: 29.8% against 8.85%. Loar Holdings Inc. has the higher net margin (11.6% vs 9.40%) and the lower return on invested capital (3.95% vs 9.50%). Across the 20 metrics below, Leonardo DRS, Inc. leads on 13 and Loar Holdings Inc. on 7.

Valuation

Metric DRS LOAR Aerospace & Defense median
P/E 27.97 94.89 31.60
P/S 2.65 10.91 3.36
P/B 3.57 5.33 2.99
Price to free cash flow 29.87 60.33 33.23
EV/EBITDA 19.51 37.00 19.00
EV/Sales 2.62 12.33 3.37
Earnings yield 3.58% 1.05% 0.90%
Free cash flow yield 3.35% 1.66% 0.00%

Profitability

Metric DRS LOAR Aerospace & Defense median
Gross margin 25.25% 52.18% 25.95%
Operating margin 10.84% 21.86% 1.21%
Net margin 9.40% 11.60% 2.11%
Free cash flow margin 8.88% 18.09% 0.00%
Return on equity 13.18% 5.84% 2.67%
Return on assets 8.47% 3.56% 1.90%
Return on invested capital 9.50% 3.95% 0.25%

Growth

Metric DRS LOAR Aerospace & Defense median
Revenue growth (TTM) 8.85% 29.76% 18.25%
EPS growth (last fiscal year) 28.75% 212.50% 24.80%
Revenue growth, 5-year CAGR 116.77% — 9.73%
Net income growth, 5-year CAGR 118.05% — 0.00%

Health

Metric DRS LOAR Aerospace & Defense median
Debt to equity 0.06 0.79 0.18
Current ratio 1.88 4.91 2.85
Net debt to EBITDA (0.68) 4.01 1.29

Dividend

Metric DRS LOAR Aerospace & Defense median
Dividend yield — — 0.87%
Payout ratio — — 0.30

Size

Metric DRS LOAR Aerospace & Defense median
Market cap 10.36b 6.41b 1.94b

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