Karman Holdings Inc. (KRMN) vs Mercury Systems Inc (MRCY)

Karman Holdings Inc. and Mercury Systems Inc are both Aerospace & Defense companies. Karman Holdings Inc. and Mercury Systems Inc are of similar size ($4.7B and $4.5B). Mercury Systems Inc has negative trailing earnings, so its P/E is not meaningful; Karman Holdings Inc. trades at 120×. Karman Holdings Inc. grew revenue faster over the last twelve months: 50.2% against 7.85%. Karman Holdings Inc. has the higher net margin (6.31% vs −3.02%) and the higher return on invested capital (5.09% vs 0.01%). Across the 18 metrics below, Karman Holdings Inc. leads on 11 and Mercury Systems Inc on 7.

Valuation

Metric KRMN MRCY Aerospace & Defense median
P/E 119.59 n/m 31.81
P/S 7.80 4.49 3.55
P/B 10.91 2.95 2.59
Price to free cash flow n/m 64.86 31.99
EV/EBITDA 34.57 63.78 18.08
EV/Sales 9.15 4.73 3.37
Earnings yield 0.84% (0.67%) 1.38%
Free cash flow yield (0.59%) 1.54% 0.21%

Profitability

Metric KRMN MRCY Aerospace & Defense median
Gross margin 41.67% 28.58% 25.48%
Operating margin 16.82% 0.03% 4.54%
Net margin 6.31% (3.02%) 2.22%
Free cash flow margin (4.63%) 6.92% 1.43%
Return on equity 9.50% (2.00%) 6.43%
Return on assets 3.10% (1.25%) 2.70%
Return on invested capital 5.09% 0.01% 1.56%

Growth

Metric KRMN MRCY Aerospace & Defense median
Revenue growth (TTM) 50.23% 7.85% 18.43%
EPS growth (last fiscal year) 62.50% 23.08% 24.27%
Revenue growth, 5-year CAGR — 1.26% 9.73%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric KRMN MRCY Aerospace & Defense median
Debt to equity 2.01 0.29 0.24
Current ratio 3.56 2.96 2.72
Net debt to EBITDA 4.60 3.11 1.12

Dividend

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

Size

Metric KRMN MRCY Aerospace & Defense median
Market cap 4.49b 4.65b 2.19b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack