Moog Inc. (MOG.B) vs Mercury Systems Inc (MRCY)

Moog Inc. and Mercury Systems Inc are both Aerospace & Defense companies. Mercury Systems Inc is the larger, with a market value of $5.1B against $3.7B — 1.4× the size. Mercury Systems Inc has negative trailing earnings, so its P/E is not meaningful; Moog Inc. trades at 33.0×. Moog Inc. grew revenue faster over the last twelve months: 15.8% against 7.85%. Moog Inc. has the higher net margin (8.73% vs −3.02%) and the higher return on invested capital (10.5% vs 0.01%). Across the 21 metrics below, Moog Inc. leads on 16 and Mercury Systems Inc on 5.

Valuation

Metric MOG.B MRCY Aerospace & Defense median
P/E 33.00 n/m 33.00
P/S 2.88 4.97 3.63
P/B 5.60 3.26 3.24
Price to free cash flow 35.21 71.77 34.01
EV/EBITDA 21.03 70.22 18.69
EV/Sales 3.08 5.21 3.94
Earnings yield 3.03% (0.60%) 1.31%
Free cash flow yield 2.84% 1.39% 0.00%

Profitability

Metric MOG.B MRCY Aerospace & Defense median
Gross margin 28.20% 28.58% 25.48%
Operating margin 11.93% 0.03% 4.54%
Net margin 8.73% (3.02%) 2.22%
Free cash flow margin 8.18% 6.92% 0.00%
Return on equity 18.11% (2.00%) 6.43%
Return on assets 8.23% (1.25%) 2.70%
Return on invested capital 10.52% 0.01% 1.56%

Growth

Metric MOG.B MRCY Aerospace & Defense median
Revenue growth (TTM) 15.81% 7.85% 18.43%
EPS growth (last fiscal year) 14.53% 23.08% —
Revenue growth, 5-year CAGR 6.00% 1.26% 9.62%
Net income growth, 5-year CAGR 91.17% 0.00% 0.00%

Health

Metric MOG.B MRCY Aerospace & Defense median
Debt to equity 0.41 0.29 0.24
Current ratio 2.09 2.96 2.72
Net debt to EBITDA 1.75 3.11 1.12

Dividend

Metric MOG.B MRCY Aerospace & Defense median
Dividend yield 0.93% — 1.04%
Payout ratio 0.21 0.00 0.00

Size

Metric MOG.B MRCY Aerospace & Defense median
Market cap 3.66b 5.06b 2.52b

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