Innovative Solutions and Support, Inc. (IA) vs Virgin Galactic Holdings, Inc. (SPCE)

Innovative Solutions and Support, Inc. and Virgin Galactic Holdings, Inc. are both Aerospace & Defense companies. Virgin Galactic Holdings, Inc. is the larger, with a market value of $492.7M against $330.2M — 1.5× the size. Virgin Galactic Holdings, 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. grew revenue faster over the last twelve months: 20.3% against −38.9%. Innovative Solutions and Support, Inc. has the higher net margin (20.5% vs −23,867.4%) and the higher return on invested capital (13.2% vs −48.9%). Across the 19 metrics below, Innovative Solutions and Support, Inc. leads on 14 and Virgin Galactic Holdings, Inc. on 5.

Valuation

Metric IA SPCE Aerospace & Defense median
P/E 17.65 n/m 33.00
P/S 3.63 340.38 3.63
P/B 4.38 0.89 3.24
Price to free cash flow 23.64 n/m 34.01
EV/EBITDA 12.78 n/m 18.69
EV/Sales 4.09 275.75 3.94
Earnings yield 5.66% (105.96%) 1.31%
Free cash flow yield 4.23% (109.38%) 0.00%

Profitability

Metric IA SPCE Aerospace & Defense median
Gross margin 54.94% 100.00% 25.48%
Operating margin 27.37% (24,804.53%) 4.54%
Net margin 20.50% (23,867.44%) 2.22%
Free cash flow margin 15.34% (37,231.31%) 0.00%
Return on equity 28.50% (75.13%) 6.43%
Return on assets 15.93% (28.89%) 2.70%
Return on invested capital 13.19% (48.91%) 1.56%

Growth

Metric IA SPCE Aerospace & Defense median
Revenue growth (TTM) 20.30% (38.87%) 18.43%
EPS growth (last fiscal year) 120.00% 60.84% —
Revenue growth, 5-year CAGR 31.31% 45.35% 9.62%
Net income growth, 5-year CAGR 36.73% 0.00% 0.00%

Health

Metric IA SPCE Aerospace & Defense median
Debt to equity 0.70 0.55 0.24
Current ratio 2.97 1.62 2.72
Net debt to EBITDA 0.90 0.05 1.12

Dividend

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

Size

Metric IA SPCE Aerospace & Defense median
Market cap 330.24m 492.69m 2.52b

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