Leonardo DRS, Inc. (DRS) vs StandardAero, Inc. (SARO)

Leonardo DRS, Inc. and StandardAero, Inc. are both Aerospace & Defense companies. Leonardo DRS, Inc. is the larger, with a market value of $9.5B against $7.0B — 1.4× the size. StandardAero, Inc. trades at the lower P/E: 21.5× against 29.1×. StandardAero, Inc. grew revenue faster over the last twelve months: 12.6% against 10.5%. Leonardo DRS, Inc. has the higher net margin (8.52% vs 5.12%) and the higher return on invested capital (9.27% vs 7.63%). Across the 20 metrics below, Leonardo DRS, Inc. leads on 10 and StandardAero, Inc. on 10.

Valuation

Metric DRS SARO Aerospace & Defense median
P/E 29.07 21.53 31.81
P/S 2.50 1.10 3.55
P/B 3.38 2.53 2.59
Price to free cash flow 26.00 33.88 31.99
EV/EBITDA 18.87 11.34 18.08
EV/Sales 2.47 1.44 3.37
Earnings yield 3.44% 4.65% 1.38%
Free cash flow yield 3.85% 2.95% 0.21%

Profitability

Metric DRS SARO Aerospace & Defense median
Gross margin 24.87% 15.05% 25.48%
Operating margin 10.53% 9.46% 4.54%
Net margin 8.52% 5.12% 2.22%
Free cash flow margin 9.63% 3.24% 1.43%
Return on equity 11.92% 12.30% 6.43%
Return on assets 7.78% 4.86% 2.70%
Return on invested capital 9.27% 7.63% 1.56%

Growth

Metric DRS SARO Aerospace & Defense median
Revenue growth (TTM) 10.46% 12.56% 18.43%
EPS growth (last fiscal year) 28.75% 1,975.00% 24.27%
Revenue growth, 5-year CAGR 116.77% — 9.73%
Net income growth, 5-year CAGR 118.05% — 0.00%

Health

Metric DRS SARO Aerospace & Defense median
Debt to equity 0.05 0.84 0.24
Current ratio 1.92 2.13 2.72
Net debt to EBITDA (0.68) 2.53 1.12

Dividend

Metric DRS SARO Aerospace & Defense median
Dividend yield — — 0.90%
Payout ratio — — 0.32

Size

Metric DRS SARO Aerospace & Defense median
Market cap 9.47b 6.95b 2.19b

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