Karman Holdings Inc. (KRMN) vs Loar Holdings Inc. (LOAR)

Karman Holdings Inc. and Loar Holdings Inc. are both Aerospace & Defense companies. Loar Holdings Inc. is the larger, with a market value of $5.9B against $4.5B — 1.3× the size. Loar Holdings Inc. trades at the lower P/E: 86.4× against 120×. Karman Holdings Inc. grew revenue faster over the last twelve months: 50.2% against 29.8%. Loar Holdings Inc. has the higher net margin (11.6% vs 6.31%) and the lower return on invested capital (3.95% vs 5.09%). Across the 19 metrics below, Loar Holdings Inc. leads on 14 and Karman Holdings Inc. on 5.

Valuation

Metric KRMN LOAR Aerospace & Defense median
P/E 119.59 86.40 31.81
P/S 7.80 9.94 3.55
P/B 10.91 4.86 2.59
Price to free cash flow n/m 54.94 31.99
EV/EBITDA 34.57 34.08 18.08
EV/Sales 9.15 11.35 3.37
Earnings yield 0.84% 1.16% 1.38%
Free cash flow yield (0.59%) 1.82% 0.21%

Profitability

Metric KRMN LOAR Aerospace & Defense median
Gross margin 41.67% 52.18% 25.48%
Operating margin 16.82% 21.86% 4.54%
Net margin 6.31% 11.60% 2.22%
Free cash flow margin (4.63%) 18.09% 1.43%
Return on equity 9.50% 5.84% 6.43%
Return on assets 3.10% 3.56% 2.70%
Return on invested capital 5.09% 3.95% 1.56%

Growth

Metric KRMN LOAR Aerospace & Defense median
Revenue growth (TTM) 50.23% 29.76% 18.43%
EPS growth (last fiscal year) 62.50% 212.50% 24.27%
Revenue growth, 5-year CAGR — — 9.73%
Net income growth, 5-year CAGR — — 0.00%

Health

Metric KRMN LOAR Aerospace & Defense median
Debt to equity 2.01 0.79 0.24
Current ratio 3.56 4.91 2.72
Net debt to EBITDA 4.60 4.01 1.12

Dividend

Metric KRMN LOAR Aerospace & Defense median
Dividend yield — — 0.90%
Payout ratio — — 0.32

Size

Metric KRMN LOAR Aerospace & Defense median
Market cap 4.49b 5.88b 2.19b

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