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 $5.9B against $4.5B — 1.3× the size. VSE Corporation trades at the lower P/E: 51.8× against 86.4×. 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 86.40 51.83 31.81
P/S 9.94 3.72 3.55
P/B 4.86 1.72 2.59
Price to free cash flow 54.94 n/m 31.99
EV/EBITDA 34.08 32.36 18.08
EV/Sales 11.35 4.36 3.37
Earnings yield 1.16% 1.93% 1.38%
Free cash flow yield 1.82% (0.02%) 0.21%

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%) 1.43%
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% 24.27%
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 0.79 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 — 0.24% 0.90%
Payout ratio — 0.13 0.32

Size

Metric LOAR VSEC Aerospace & Defense median
Market cap 5.88b 4.53b 2.19b

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