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 $6.8B against $4.6B — 1.5× the size. VSE Corporation trades at the lower P/E: 60.0× against 113×. VSE Corporation grew revenue faster over the last twelve months: 41.6% against 33.8%. Loar Holdings Inc. has the higher net margin (9.44% vs 5.53%) and the higher return on invested capital (4.51% 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 113.31 59.96 28.48
P/S 10.69 3.78 2.95
P/B 5.56 1.75 2.68
Price to free cash flow 57.29 n/m 31.70
EV/EBITDA 38.83 32.83 16.85
EV/Sales 11.93 4.43 2.74
Earnings yield 0.88% 1.67% 0.89%
Free cash flow yield 1.75% (0.02%) 0.00%

Profitability

Metric LOAR VSEC Aerospace & Defense median
Gross margin 52.63% 15.62% 26.41%
Operating margin 22.86% 9.15% 3.69%
Net margin 9.44% 5.53% 2.74%
Free cash flow margin 18.65% (0.08%) 0.00%
Return on equity 5.04% 3.84% 4.44%
Return on assets 3.09% 2.50% 1.90%
Return on invested capital 4.51% 2.04% 0.26%

Growth

Metric LOAR VSEC Aerospace & Defense median
Revenue growth (TTM) 33.82% 41.55% 18.03%
EPS growth (last fiscal year) 212.50% (35.29%) 24.80%
Revenue growth, 5-year CAGR — 10.95% 9.73%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric LOAR VSEC Aerospace & Defense median
Debt to equity 0.78 0.32 0.20
Current ratio 5.38 3.77 2.85
Net debt to EBITDA 4.01 1.71 1.29

Dividend

Metric LOAR VSEC Aerospace & Defense median
Dividend yield — 0.24% 0.91%
Payout ratio — 0.15 0.30

Size

Metric LOAR VSEC Aerospace & Defense median
Market cap 6.84b 4.62b 1.78b

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