L3Harris Technologies Inc (LHX) vs Rocket Lab Corporation (RKLB)

L3Harris Technologies Inc and Rocket Lab Corporation are both Aerospace & Defense companies. L3Harris Technologies Inc is the larger, with a market value of $48.1B against $27.5B — 1.7× the size. Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; L3Harris Technologies Inc trades at 23.8×. Rocket Lab Corporation grew revenue faster over the last twelve months: 52.5% against 7.33%. L3Harris Technologies Inc has the higher net margin (8.62% vs −21.5%) and the higher return on invested capital (5.69% vs −11.5%). Across the 19 metrics below, L3Harris Technologies Inc leads on 14 and Rocket Lab Corporation on 5.

Valuation

Metric LHX RKLB Aerospace & Defense median
P/E 23.79 n/m 28.48
P/S 2.07 38.19 2.95
P/B 2.38 8.41 2.68
Price to free cash flow 13.20 n/m 31.70
EV/EBITDA 14.77 n/m 16.85
EV/Sales 2.41 35.26 2.74
Earnings yield 4.20% (0.58%) 0.89%
Free cash flow yield 7.58% (1.26%) 0.00%

Profitability

Metric LHX RKLB Aerospace & Defense median
Gross margin 25.55% 37.26% 26.41%
Operating margin 11.01% (29.06%) 3.69%
Net margin 8.62% (21.51%) 2.74%
Free cash flow margin 15.65% (48.13%) 0.00%
Return on equity 10.11% (7.92%) 4.44%
Return on assets 4.74% (5.76%) 1.90%
Return on invested capital 5.69% (11.46%) 0.26%

Growth

Metric LHX RKLB Aerospace & Defense median
Revenue growth (TTM) 7.33% 52.53% 18.03%
EPS growth (last fiscal year) 8.39% 2.63% 24.80%
Revenue growth, 5-year CAGR 3.74% 76.47% 9.73%
Net income growth, 5-year CAGR 7.49% 0.00% 0.00%

Health

Metric LHX RKLB Aerospace & Defense median
Debt to equity 0.54 0.01 0.20
Current ratio 1.20 5.48 2.85
Net debt to EBITDA 2.68 4.66 1.29

Dividend

Metric LHX RKLB Aerospace & Defense median
Dividend yield 1.91% — 0.91%
Payout ratio 0.46 — 0.30

Size

Metric LHX RKLB Aerospace & Defense median
Market cap 48.06b 27.52b 1.78b

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