Heico Corporation (HEI) vs Rocket Lab Corporation (RKLB)

Heico Corporation and Rocket Lab Corporation are both Aerospace & Defense companies. Heico Corporation is the larger, with a market value of $38.5B against $27.5B — 1.4× the size. Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; Heico Corporation trades at 53.7×. Rocket Lab Corporation grew revenue faster over the last twelve months: 52.5% against 20.7%. Heico Corporation has the higher net margin (16.4% vs −21.5%) and the higher return on invested capital (10.6% vs −11.5%). Across the 19 metrics below, Heico Corporation leads on 14 and Rocket Lab Corporation on 5.

Valuation

Metric HEI RKLB Aerospace & Defense median
P/E 53.72 n/m 28.48
P/S 8.81 38.19 2.95
P/B 9.08 8.41 2.68
Price to free cash flow 44.29 n/m 31.70
EV/EBITDA 32.78 n/m 16.85
EV/Sales 9.26 35.26 2.74
Earnings yield 1.86% (0.58%) 0.89%
Free cash flow yield 2.26% (1.26%) 0.00%

Profitability

Metric HEI RKLB Aerospace & Defense median
Gross margin 40.40% 37.26% 26.41%
Operating margin 24.04% (29.06%) 3.69%
Net margin 16.38% (21.51%) 2.74%
Free cash flow margin 19.90% (48.13%) 0.00%
Return on equity 18.35% (7.92%) 4.44%
Return on assets 9.18% (5.76%) 1.90%
Return on invested capital 10.62% (11.46%) 0.26%

Growth

Metric HEI RKLB Aerospace & Defense median
Revenue growth (TTM) 20.69% 52.53% 18.03%
EPS growth (last fiscal year) 33.51% 2.63% 24.80%
Revenue growth, 5-year CAGR 20.21% 76.47% 9.73%
Net income growth, 5-year CAGR 17.07% 0.00% 0.00%

Health

Metric HEI RKLB Aerospace & Defense median
Debt to equity 0.51 0.01 0.20
Current ratio 2.72 5.48 2.85
Net debt to EBITDA 1.61 4.66 1.29

Dividend

Metric HEI RKLB Aerospace & Defense median
Dividend yield 0.08% — 0.91%
Payout ratio 0.04 — 0.30

Size

Metric HEI RKLB Aerospace & Defense median
Market cap 38.54b 27.52b 1.78b

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