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

L3Harris Technologies Inc and Rocket Lab Corporation are both Aerospace & Defense companies. L3Harris Technologies Inc and Rocket Lab Corporation are of similar size ($44.8B and $44.5B). Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; L3Harris Technologies Inc trades at 23.9×. Rocket Lab Corporation grew revenue faster over the last twelve months: 52.5% against 7.29%. L3Harris Technologies Inc has the higher net margin (8.11% vs −21.5%) and the higher return on invested capital (5.12% 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 23.86 n/m 33.00
P/S 1.93 60.54 3.63
P/B 2.23 13.33 3.24
Price to free cash flow 15.77 n/m 34.01
EV/EBITDA 14.60 n/m 18.69
EV/Sales 2.34 57.61 3.94
Earnings yield 4.19% (0.37%) 1.31%
Free cash flow yield 6.34% (0.79%) 0.00%

Profitability

Metric LHX RKLB Aerospace & Defense median
Gross margin 25.48% 37.26% 25.48%
Operating margin 10.49% (29.06%) 4.54%
Net margin 8.11% (21.51%) 2.22%
Free cash flow margin 12.24% (48.13%) 0.00%
Return on equity 9.50% (7.92%) 6.43%
Return on assets 4.42% (5.76%) 2.70%
Return on invested capital 5.12% (11.46%) 1.56%

Growth

Metric LHX RKLB Aerospace & Defense median
Revenue growth (TTM) 7.29% 52.53% 18.43%
EPS growth (last fiscal year) 8.39% 2.63% —
Revenue growth, 5-year CAGR 3.74% 76.47% 9.62%
Net income growth, 5-year CAGR 7.49% 0.00% 0.00%

Health

Metric LHX RKLB Aerospace & Defense median
Debt to equity 0.55 0.01 0.24
Current ratio 1.18 5.48 2.72
Net debt to EBITDA 2.68 4.66 1.12

Dividend

Metric LHX RKLB Aerospace & Defense median
Dividend yield 2.32% — 1.04%
Payout ratio 1.07 0.00 0.00

Size

Metric LHX RKLB Aerospace & Defense median
Market cap 44.49b 44.78b 2.52b

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