Karman Holdings Inc. (KRMN) vs VSE Corporation (VSEC)

Karman Holdings Inc. and VSE Corporation are both Aerospace & Defense companies. Karman Holdings Inc. and VSE Corporation are of similar size ($5.1B and $4.6B). VSE Corporation trades at the lower P/E: 57.6× against 123×. Karman Holdings Inc. grew revenue faster over the last twelve months: 50.2% against 41.6%. Karman Holdings Inc. has the higher net margin (6.31% vs 5.53%) and the higher return on invested capital (5.09% vs 2.04%). Across the 19 metrics below, VSE Corporation leads on 10 and Karman Holdings Inc. on 9.

Valuation

Metric KRMN VSEC Aerospace & Defense median
P/E 123.07 57.59 33.00
P/S 8.02 4.13 3.63
P/B 11.23 1.91 3.24
Price to free cash flow n/m n/m 34.01
EV/EBITDA 35.42 35.43 18.69
EV/Sales 9.37 4.78 3.94
Earnings yield 0.81% 1.74% 1.31%
Free cash flow yield (0.58%) (0.02%) 0.00%

Profitability

Metric KRMN VSEC Aerospace & Defense median
Gross margin 41.67% 15.62% 25.48%
Operating margin 16.82% 9.15% 4.54%
Net margin 6.31% 5.53% 2.22%
Free cash flow margin (4.63%) (0.08%) 0.00%
Return on equity 9.50% 3.84% 6.43%
Return on assets 3.10% 2.50% 2.70%
Return on invested capital 5.09% 2.04% 1.56%

Growth

Metric KRMN VSEC Aerospace & Defense median
Revenue growth (TTM) 50.23% 41.55% 18.43%
EPS growth (last fiscal year) 62.50% 24.14% —
Revenue growth, 5-year CAGR — 10.95% 9.62%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric KRMN VSEC Aerospace & Defense median
Debt to equity 2.01 0.32 0.24
Current ratio 3.56 3.77 2.72
Net debt to EBITDA 4.60 1.71 1.12

Dividend

Metric KRMN VSEC Aerospace & Defense median
Dividend yield — 0.59% 1.04%
Payout ratio — 0.15 0.00

Size

Metric KRMN VSEC Aerospace & Defense median
Market cap 4.64b 5.06b 2.52b

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