Loar Holdings Inc. (LOAR) vs StandardAero, Inc. (SARO)

Loar Holdings Inc. and StandardAero, Inc. are both Aerospace & Defense companies. StandardAero, Inc. is the larger, with a market value of $8.4B against $6.8B — 1.2× the size. StandardAero, Inc. trades at the lower P/E: 25.4× against 113×. Loar Holdings Inc. grew revenue faster over the last twelve months: 33.8% against 12.6%. Loar Holdings Inc. has the higher net margin (9.44% vs 5.12%) and the lower return on invested capital (4.51% vs 7.63%). Across the 20 metrics below, StandardAero, Inc. leads on 13 and Loar Holdings Inc. on 7.

Valuation

Metric LOAR SARO Aerospace & Defense median
P/E 113.31 25.38 28.48
P/S 10.69 1.30 2.95
P/B 5.56 2.98 2.68
Price to free cash flow 57.29 39.95 31.70
EV/EBITDA 38.83 12.89 16.85
EV/Sales 11.93 1.64 2.74
Earnings yield 0.88% 3.94% 0.89%
Free cash flow yield 1.75% 2.50% 0.00%

Profitability

Metric LOAR SARO Aerospace & Defense median
Gross margin 52.63% 15.05% 26.41%
Operating margin 22.86% 9.46% 3.69%
Net margin 9.44% 5.12% 2.74%
Free cash flow margin 18.65% 3.24% 0.00%
Return on equity 5.04% 12.30% 4.44%
Return on assets 3.09% 4.86% 1.90%
Return on invested capital 4.51% 7.63% 0.26%

Growth

Metric LOAR SARO Aerospace & Defense median
Revenue growth (TTM) 33.82% 12.56% 18.03%
EPS growth (last fiscal year) 212.50% 1,975.00% 24.80%
Revenue growth, 5-year CAGR — — 9.73%
Net income growth, 5-year CAGR — — 0.00%

Health

Metric LOAR SARO Aerospace & Defense median
Debt to equity 0.78 0.84 0.20
Current ratio 5.38 2.13 2.85
Net debt to EBITDA 4.01 2.53 1.29

Dividend

Metric LOAR SARO Aerospace & Defense median
Dividend yield — — 0.91%
Payout ratio — — 0.30

Size

Metric LOAR SARO Aerospace & Defense median
Market cap 6.84b 8.37b 1.78b

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