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 $10.0B against $7.4B — 1.4× the size. StandardAero, Inc. trades at the lower P/E: 23.0× against 30.4×. 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 30.43 22.97 33.00
P/S 2.62 1.17 3.63
P/B 3.53 2.69 3.24
Price to free cash flow 27.21 36.15 34.01
EV/EBITDA 19.76 11.92 18.69
EV/Sales 2.59 1.51 3.94
Earnings yield 3.29% 4.35% 1.31%
Free cash flow yield 3.68% 2.77% 0.00%

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% 0.00%
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% —
Revenue growth, 5-year CAGR 116.77% — 9.62%
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 — — 1.04%
Payout ratio 0.00 — 0.00

Size

Metric DRS SARO Aerospace & Defense median
Market cap 10.03b 7.39b 2.52b

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