Innovative Solutions and Support, Inc. (IA) vs Merlin Inc (MRLN)

Innovative Solutions and Support, Inc. and Merlin Inc are both Aerospace & Defense companies. Innovative Solutions and Support, Inc. is the larger, with a market value of $330.2M against $181.8M — 1.8× the size. Merlin Inc has negative trailing earnings, so its P/E is not meaningful; Innovative Solutions and Support, Inc. trades at 17.7×. Innovative Solutions and Support, Inc. has the higher net margin (20.5% vs −3,463.5%) and the higher return on invested capital (13.2% vs 0.00%). Across the 15 metrics below, Innovative Solutions and Support, Inc. leads on 12 and Merlin Inc on 3.

Valuation

Metric IA MRLN Aerospace & Defense median
P/E 17.65 n/m 33.00
P/S 3.63 25.34 3.63
P/B 4.38 n/m 3.24
Price to free cash flow 23.64 n/m 34.01
EV/EBITDA 12.78 n/m 18.69
EV/Sales 4.09 4.17 3.94
Earnings yield 5.66% (154.73%) 1.31%
Free cash flow yield 4.23% (37.53%) 0.00%

Profitability

Metric IA MRLN Aerospace & Defense median
Gross margin 54.94% 26.34% 25.48%
Operating margin 27.37% (1,156.90%) 4.54%
Net margin 20.50% (3,463.45%) 2.22%
Free cash flow margin 15.34% (951.07%) 0.00%
Return on equity 28.50% 0.00% 6.43%
Return on assets 15.93% (239.99%) 2.70%
Return on invested capital 13.19% 0.00% 1.56%

Growth

Metric IA MRLN Aerospace & Defense median
Revenue growth (TTM) 20.30% — 18.43%
EPS growth (last fiscal year) 120.00% 85.03% —
Revenue growth, 5-year CAGR 31.31% — 9.62%
Net income growth, 5-year CAGR 36.73% — 0.00%

Health

Metric IA MRLN Aerospace & Defense median
Debt to equity 0.70 0.00 0.24
Current ratio 2.97 14.67 2.72
Net debt to EBITDA 0.90 0.24 1.12

Dividend

Metric IA MRLN Aerospace & Defense median
Dividend yield — — 1.04%
Payout ratio 0.00 — 0.00

Size

Metric IA MRLN Aerospace & Defense median
Market cap 330.24m 181.77m 2.52b

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