Loar Holdings Inc. (LOAR) vs VSE Corporation (VSEC)

Loar Holdings Inc. and VSE Corporation 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. VSE Corporation trades at the lower P/E: 57.6× against 90.3×. VSE Corporation grew revenue faster over the last twelve months: 41.6% against 29.8%. Loar Holdings Inc. has the higher net margin (11.6% vs 5.53%) and the higher return on invested capital (3.95% vs 2.04%). Across the 19 metrics below, Loar Holdings Inc. leads on 10 and VSE Corporation on 9.

Valuation

Metric LOAR VSEC Aerospace & Defense median
P/E 90.33 57.59 33.00
P/S 10.39 4.13 3.63
P/B 5.08 1.91 3.24
Price to free cash flow 57.44 n/m 34.01
EV/EBITDA 35.43 35.43 18.69
EV/Sales 11.81 4.78 3.94
Earnings yield 1.11% 1.74% 1.31%
Free cash flow yield 1.74% (0.02%) 0.00%

Profitability

Metric LOAR VSEC Aerospace & Defense median
Gross margin 52.18% 15.62% 25.48%
Operating margin 21.86% 9.15% 4.54%
Net margin 11.60% 5.53% 2.22%
Free cash flow margin 18.09% (0.08%) 0.00%
Return on equity 5.84% 3.84% 6.43%
Return on assets 3.56% 2.50% 2.70%
Return on invested capital 3.95% 2.04% 1.56%

Growth

Metric LOAR VSEC Aerospace & Defense median
Revenue growth (TTM) 29.76% 41.55% 18.43%
EPS growth (last fiscal year) 212.50% 24.14% —
Revenue growth, 5-year CAGR — 10.95% 9.62%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric LOAR VSEC Aerospace & Defense median
Debt to equity 0.79 0.32 0.24
Current ratio 4.91 3.77 2.72
Net debt to EBITDA 4.01 1.71 1.12

Dividend

Metric LOAR VSEC Aerospace & Defense median
Dividend yield — 0.59% 1.04%
Payout ratio — 0.15 0.00

Size

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

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