GE Aerospace (GE) vs Rocket Lab Corporation (RKLB)

GE Aerospace and Rocket Lab Corporation are both Aerospace & Defense companies. GE Aerospace is the larger, with a market value of $333.1B against $44.8B — 7.4× the size. Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; GE Aerospace trades at 38.2×. Rocket Lab Corporation grew revenue faster over the last twelve months: 52.5% against 21.7%. GE Aerospace has the higher net margin (17.7% vs −21.5%) and the higher return on invested capital (26.5% vs −11.5%). Across the 19 metrics below, GE Aerospace leads on 13 and Rocket Lab Corporation on 6.

Valuation

Metric GE RKLB Aerospace & Defense median
P/E 38.21 n/m 33.00
P/S 6.72 60.54 3.63
P/B 19.04 13.33 3.24
Price to free cash flow 49.62 n/m 34.01
EV/EBITDA 26.96 n/m 18.69
EV/Sales 6.91 57.61 3.94
Earnings yield 2.62% (0.37%) 1.31%
Free cash flow yield 2.02% (0.79%) 0.00%

Profitability

Metric GE RKLB Aerospace & Defense median
Gross margin 35.38% 37.26% 25.48%
Operating margin 23.20% (29.06%) 4.54%
Net margin 17.72% (21.51%) 2.22%
Free cash flow margin 16.89% (48.13%) 0.00%
Return on equity 48.22% (7.92%) 6.43%
Return on assets 7.09% (5.76%) 2.70%
Return on invested capital 26.53% (11.46%) 1.56%

Growth

Metric GE RKLB Aerospace & Defense median
Revenue growth (TTM) 21.69% 52.53% 18.43%
EPS growth (last fiscal year) 35.89% 2.63% —
Revenue growth, 5-year CAGR (9.57%) 76.47% 9.62%
Net income growth, 5-year CAGR 10.72% 0.00% 0.00%

Health

Metric GE RKLB Aerospace & Defense median
Debt to equity 1.07 0.01 0.24
Current ratio 0.98 5.48 2.72
Net debt to EBITDA 0.65 4.66 1.12

Dividend

Metric GE RKLB Aerospace & Defense median
Dividend yield 0.29% — 1.04%
Payout ratio 0.03 0.00 0.00

Size

Metric GE RKLB Aerospace & Defense median
Market cap 333.06b 44.78b 2.52b

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