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 $7.4B against $6.1B — 1.2× the size. StandardAero, Inc. trades at the lower P/E: 23.0× against 90.3×. Loar Holdings Inc. grew revenue faster over the last twelve months: 29.8% against 12.6%. Loar Holdings Inc. has the higher net margin (11.6% vs 5.12%) and the lower return on invested capital (3.95% 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 90.33 22.97 33.00
P/S 10.39 1.17 3.63
P/B 5.08 2.69 3.24
Price to free cash flow 57.44 36.15 34.01
EV/EBITDA 35.43 11.92 18.69
EV/Sales 11.81 1.51 3.94
Earnings yield 1.11% 4.35% 1.31%
Free cash flow yield 1.74% 2.77% 0.00%

Profitability

Metric LOAR SARO Aerospace & Defense median
Gross margin 52.18% 15.05% 25.48%
Operating margin 21.86% 9.46% 4.54%
Net margin 11.60% 5.12% 2.22%
Free cash flow margin 18.09% 3.24% 0.00%
Return on equity 5.84% 12.30% 6.43%
Return on assets 3.56% 4.86% 2.70%
Return on invested capital 3.95% 7.63% 1.56%

Growth

Metric LOAR SARO Aerospace & Defense median
Revenue growth (TTM) 29.76% 12.56% 18.43%
EPS growth (last fiscal year) 212.50% 1,975.00% —
Revenue growth, 5-year CAGR — — 9.62%
Net income growth, 5-year CAGR — — 0.00%

Health

Metric LOAR SARO Aerospace & Defense median
Debt to equity 0.79 0.84 0.24
Current ratio 4.91 2.13 2.72
Net debt to EBITDA 4.01 2.53 1.12

Dividend

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

Size

Metric LOAR SARO Aerospace & Defense median
Market cap 6.13b 7.39b 2.52b

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