Loar Holdings Inc. (LOAR) vs Mercury Systems Inc (MRCY)

Loar Holdings Inc. and Mercury Systems Inc are both Aerospace & Defense companies. Loar Holdings Inc. is the larger, with a market value of $6.1B against $5.1B — 1.2× the size. Mercury Systems Inc has negative trailing earnings, so its P/E is not meaningful; Loar Holdings Inc. trades at 90.3×. Loar Holdings Inc. grew revenue faster over the last twelve months: 29.8% against 7.85%. Loar Holdings Inc. has the higher net margin (11.6% vs −3.02%) and the higher return on invested capital (3.95% vs 0.01%). Across the 19 metrics below, Loar Holdings Inc. leads on 14 and Mercury Systems Inc on 5.

Valuation

Metric LOAR MRCY Aerospace & Defense median
P/E 90.33 n/m 33.00
P/S 10.39 4.97 3.63
P/B 5.08 3.26 3.24
Price to free cash flow 57.44 71.77 34.01
EV/EBITDA 35.43 70.22 18.69
EV/Sales 11.81 5.21 3.94
Earnings yield 1.11% (0.60%) 1.31%
Free cash flow yield 1.74% 1.39% 0.00%

Profitability

Metric LOAR MRCY Aerospace & Defense median
Gross margin 52.18% 28.58% 25.48%
Operating margin 21.86% 0.03% 4.54%
Net margin 11.60% (3.02%) 2.22%
Free cash flow margin 18.09% 6.92% 0.00%
Return on equity 5.84% (2.00%) 6.43%
Return on assets 3.56% (1.25%) 2.70%
Return on invested capital 3.95% 0.01% 1.56%

Growth

Metric LOAR MRCY Aerospace & Defense median
Revenue growth (TTM) 29.76% 7.85% 18.43%
EPS growth (last fiscal year) 212.50% 23.08% —
Revenue growth, 5-year CAGR — 1.26% 9.62%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric LOAR MRCY Aerospace & Defense median
Debt to equity 0.79 0.29 0.24
Current ratio 4.91 2.96 2.72
Net debt to EBITDA 4.01 3.11 1.12

Dividend

Metric LOAR MRCY Aerospace & Defense median
Dividend yield — — 1.04%
Payout ratio — 0.00 0.00

Size

Metric LOAR MRCY Aerospace & Defense median
Market cap 6.13b 5.06b 2.52b

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