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

Elbit Systems Ltd. and Rocket Lab Corporation are both Aerospace & Defense companies. Rocket Lab Corporation is the larger, with a market value of $44.8B against $32.9B — 1.4× the size. Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; Elbit Systems Ltd. trades at 53.7×. 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 53.73 n/m 33.00
P/S 4.02 60.54 3.63
P/B 8.07 13.33 3.24
Price to free cash flow 50.29 n/m 34.01
EV/EBITDA 34.80 n/m 18.69
EV/Sales 3.94 57.61 3.94
Earnings yield 1.86% (0.37%) 1.31%
Free cash flow yield 1.99% (0.79%) 0.00%

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%) 0.00%
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% —
Revenue growth, 5-year CAGR 11.23% 76.47% 9.62%
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 0.98% — 1.04%
Payout ratio 0.34 0.00 0.00

Size

Metric ESLT RKLB Aerospace & Defense median
Market cap 32.94b 44.78b 2.52b

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