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

Heico Corporation and Rocket Lab Corporation are both Aerospace & Defense companies. Rocket Lab Corporation is the larger, with a market value of $44.8B against $36.3B — 1.2× the size. Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; Heico Corporation trades at 38.2×. 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 15 and Rocket Lab Corporation on 4.

Valuation

Metric HEI.A RKLB Aerospace & Defense median
P/E 38.16 n/m 33.00
P/S 6.26 60.54 3.63
P/B 6.45 13.33 3.24
Price to free cash flow 31.46 n/m 34.01
EV/EBITDA 23.74 n/m 18.69
EV/Sales 6.71 57.61 3.94
Earnings yield 2.62% (0.37%) 1.31%
Free cash flow yield 3.18% (0.79%) 0.00%

Profitability

Metric HEI.A RKLB Aerospace & Defense median
Gross margin 40.40% 37.26% 25.48%
Operating margin 24.04% (29.06%) 4.54%
Net margin 16.38% (21.51%) 2.22%
Free cash flow margin 19.90% (48.13%) 0.00%
Return on equity 18.35% (7.92%) 6.43%
Return on assets 9.18% (5.76%) 2.70%
Return on invested capital 10.62% (11.46%) 1.56%

Growth

Metric HEI.A RKLB Aerospace & Defense median
Revenue growth (TTM) 20.69% 52.53% 18.43%
EPS growth (last fiscal year) 33.51% 2.63% —
Revenue growth, 5-year CAGR 20.21% 76.47% 9.62%
Net income growth, 5-year CAGR 17.07% 0.00% 0.00%

Health

Metric HEI.A RKLB Aerospace & Defense median
Debt to equity 0.51 0.01 0.24
Current ratio 2.72 5.48 2.72
Net debt to EBITDA 1.61 4.66 1.12

Dividend

Metric HEI.A RKLB Aerospace & Defense median
Dividend yield 0.17% — 1.04%
Payout ratio 0.07 0.00 0.00

Size

Metric HEI.A RKLB Aerospace & Defense median
Market cap 36.31b 44.78b 2.52b

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