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

Elbit Systems Ltd. and Rocket Lab Corporation are both Aerospace & Defense companies. Elbit Systems Ltd. is the larger, with a market value of $30.5B against $27.5B — 1.1× the size. Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; Elbit Systems Ltd. trades at 47.9×. 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 47.87 n/m 28.48
P/S 3.58 38.19 2.95
P/B 7.19 8.41 2.68
Price to free cash flow 44.81 n/m 31.70
EV/EBITDA 30.93 n/m 16.85
EV/Sales 3.50 35.26 2.74
Earnings yield 2.09% (0.58%) 0.89%
Free cash flow yield 2.23% (1.26%) 0.00%

Profitability

Metric ESLT RKLB Aerospace & Defense median
Gross margin 25.03% 37.26% 26.41%
Operating margin 9.22% (29.06%) 3.69%
Net margin 7.44% (21.51%) 2.74%
Free cash flow margin 8.00% (48.13%) 0.00%
Return on equity 0.00% (7.92%) 4.44%
Return on assets 4.90% (5.76%) 1.90%
Return on invested capital 13.26% (11.46%) 0.26%

Growth

Metric ESLT RKLB Aerospace & Defense median
Revenue growth (TTM) 13.70% 52.53% 18.03%
EPS growth (last fiscal year) 58.64% 2.63% 24.80%
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 0.20
Current ratio 1.39 5.48 2.85
Net debt to EBITDA (0.57) 4.66 1.29

Dividend

Metric ESLT RKLB Aerospace & Defense median
Dividend yield 0.57% — 0.91%
Payout ratio 0.28 — 0.30

Size

Metric ESLT RKLB Aerospace & Defense median
Market cap 30.53b 27.52b 1.78b

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