MDA Space Ltd. (MDA) vs Mercury Systems Inc (MRCY)

MDA Space Ltd. and Mercury Systems Inc are both Aerospace & Defense companies. Mercury Systems Inc is the larger, with a market value of $4.9B against $4.4B — 1.1× the size. Mercury Systems Inc has negative trailing earnings, so its P/E is not meaningful; MDA Space Ltd. trades at 46.5×. MDA Space Ltd. has the higher net margin (5.68% vs −3.02%) and the higher return on invested capital (5.05% vs 0.01%). Across the 17 metrics below, MDA Space Ltd. leads on 13 and Mercury Systems Inc on 4.

Valuation

Metric MDA MRCY Aerospace & Defense median
P/E 46.46 n/m 31.60
P/S 2.80 4.85 3.36
P/B 2.78 3.19 2.99
Price to free cash flow n/m 70.11 33.23
EV/EBITDA 16.34 68.67 19.00
EV/Sales 2.78 5.09 3.37
Earnings yield 2.15% (0.62%) 0.90%
Free cash flow yield (4.61%) 1.43% 0.00%

Profitability

Metric MDA MRCY Aerospace & Defense median
Gross margin 25.43% 28.58% 25.95%
Operating margin 7.99% 0.03% 1.21%
Net margin 5.68% (3.02%) 2.11%
Free cash flow margin (12.91%) 6.92% 0.00%
Return on equity 6.70% (2.00%) 2.67%
Return on assets 3.07% (1.25%) 1.90%
Return on invested capital 5.05% 0.01% 0.25%

Growth

Metric MDA MRCY Aerospace & Defense median
Revenue growth (TTM) — 7.85% 18.25%
EPS growth (last fiscal year) 30.24% 23.08% 24.80%
Revenue growth, 5-year CAGR — 1.26% 9.73%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric MDA MRCY Aerospace & Defense median
Debt to equity 0.19 0.29 0.18
Current ratio 0.75 2.96 2.85
Net debt to EBITDA 0.84 3.11 1.29

Dividend

Metric MDA MRCY Aerospace & Defense median
Dividend yield — — 0.87%
Payout ratio — — 0.30

Size

Metric MDA MRCY Aerospace & Defense median
Market cap 4.43b 4.89b 1.94b

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