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

Leonardo DRS, Inc. and StandardAero, Inc. are both Aerospace & Defense companies. Leonardo DRS, Inc. and StandardAero, Inc. are of similar size ($8.8B and $8.4B). Leonardo DRS, Inc. trades at the lower P/E: 24.0× against 25.4×. StandardAero, Inc. grew revenue faster over the last twelve months: 12.6% against 8.85%. Leonardo DRS, Inc. has the higher net margin (9.40% vs 5.12%) and the higher return on invested capital (9.50% vs 7.63%). Across the 20 metrics below, Leonardo DRS, Inc. leads on 13 and StandardAero, Inc. on 7.

Valuation

Metric DRS SARO Aerospace & Defense median
P/E 23.95 25.38 28.48
P/S 2.27 1.30 2.95
P/B 3.05 2.98 2.68
Price to free cash flow 25.58 39.95 31.70
EV/EBITDA 16.68 12.89 16.85
EV/Sales 2.24 1.64 2.74
Earnings yield 4.17% 3.94% 0.89%
Free cash flow yield 3.91% 2.50% 0.00%

Profitability

Metric DRS SARO Aerospace & Defense median
Gross margin 25.25% 15.05% 26.41%
Operating margin 10.84% 9.46% 3.69%
Net margin 9.40% 5.12% 2.74%
Free cash flow margin 8.88% 3.24% 0.00%
Return on equity 13.18% 12.30% 4.44%
Return on assets 8.47% 4.86% 1.90%
Return on invested capital 9.50% 7.63% 0.26%

Growth

Metric DRS SARO Aerospace & Defense median
Revenue growth (TTM) 8.85% 12.56% 18.03%
EPS growth (last fiscal year) 28.75% 1,975.00% 24.80%
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 0.06 0.84 0.20
Current ratio 1.88 2.13 2.85
Net debt to EBITDA (0.68) 2.53 1.29

Dividend

Metric DRS SARO Aerospace & Defense median
Dividend yield — — 0.91%
Payout ratio — — 0.30

Size

Metric DRS SARO Aerospace & Defense median
Market cap 8.80b 8.37b 1.78b

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