Elbit Systems Ltd. (ESLT) vs Rocket Lab Corporation (RKLB)

Elbit Systems Ltd. and Rocket Lab Corporation are both Aerospace & Defense companies. Elbit Systems Ltd. and Rocket Lab Corporation are of similar size ($34.8B and $33.1B). Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; Elbit Systems Ltd. trades at 55.2×. Rocket Lab Corporation grew revenue faster over the last twelve months: 52.5% against 13.7%. Elbit Systems Ltd. has the higher net margin (7.44% vs −21.5%) and the higher return on invested capital (13.3% vs −11.5%). Across the 19 metrics below, Elbit Systems Ltd. leads on 14 and Rocket Lab Corporation on 5.

Valuation

Metric ESLT RKLB Aerospace & Defense median
P/E 55.22 n/m 31.81
P/S 4.13 41.62 3.55
P/B 8.29 9.17 2.59
Price to free cash flow 51.69 n/m 31.99
EV/EBITDA 35.79 n/m 18.08
EV/Sales 4.05 38.69 3.37
Earnings yield 1.81% (0.53%) 1.38%
Free cash flow yield 1.93% (1.16%) 0.21%

Profitability

Metric ESLT RKLB Aerospace & Defense median
Gross margin 25.03% 37.26% 25.48%
Operating margin 9.22% (29.06%) 4.54%
Net margin 7.44% (21.51%) 2.22%
Free cash flow margin 8.00% (48.13%) 1.43%
Return on equity 0.00% (7.92%) 6.43%
Return on assets 4.90% (5.76%) 2.70%
Return on invested capital 13.26% (11.46%) 1.56%

Growth

Metric ESLT RKLB Aerospace & Defense median
Revenue growth (TTM) 13.70% 52.53% 18.43%
EPS growth (last fiscal year) 58.64% 2.63% 24.27%
Revenue growth, 5-year CAGR 11.23% 76.47% 9.73%
Net income growth, 5-year CAGR 17.59% 0.00% 0.00%

Health

Metric ESLT RKLB Aerospace & Defense median
Debt to equity 0.06 0.01 0.24
Current ratio 1.39 5.48 2.72
Net debt to EBITDA (0.57) 4.66 1.12

Dividend

Metric ESLT RKLB Aerospace & Defense median
Dividend yield 0.50% — 0.90%
Payout ratio 0.28 — 0.32

Size

Metric ESLT RKLB Aerospace & Defense median
Market cap 34.76b 33.06b 2.19b

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