MDA Space Ltd. (MDA) vs VSE Corporation (VSEC)

MDA Space Ltd. and VSE Corporation are both Aerospace & Defense companies. MDA Space Ltd. and VSE Corporation are of similar size ($4.6B and $4.4B). MDA Space Ltd. trades at the lower P/E: 46.5× against 58.8×. MDA Space Ltd. has the higher net margin (5.68% vs 5.53%) and the higher return on invested capital (5.05% vs 2.04%). Across the 18 metrics below, MDA Space Ltd. leads on 13 and VSE Corporation on 5.

Valuation

Metric MDA VSEC Aerospace & Defense median
P/E 46.46 58.77 31.60
P/S 2.80 3.71 3.36
P/B 2.78 1.72 2.99
Price to free cash flow n/m n/m 33.23
EV/EBITDA 16.34 32.28 19.00
EV/Sales 2.78 4.35 3.37
Earnings yield 2.15% 1.70% 0.90%
Free cash flow yield (4.61%) (0.02%) 0.00%

Profitability

Metric MDA VSEC Aerospace & Defense median
Gross margin 25.43% 15.62% 25.95%
Operating margin 7.99% 9.15% 1.21%
Net margin 5.68% 5.53% 2.11%
Free cash flow margin (12.91%) (0.08%) 0.00%
Return on equity 6.70% 3.84% 2.67%
Return on assets 3.07% 2.50% 1.90%
Return on invested capital 5.05% 2.04% 0.25%

Growth

Metric MDA VSEC Aerospace & Defense median
Revenue growth (TTM) — 41.55% 18.25%
EPS growth (last fiscal year) 30.24% (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 MDA VSEC Aerospace & Defense median
Debt to equity 0.19 0.32 0.18
Current ratio 0.75 3.77 2.85
Net debt to EBITDA 0.84 1.71 1.29

Dividend

Metric MDA VSEC Aerospace & Defense median
Dividend yield — 0.25% 0.87%
Payout ratio — 0.15 0.30

Size

Metric MDA VSEC Aerospace & Defense median
Market cap 4.43b 4.57b 1.94b

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