Mercury Systems Inc (MRCY) vs StandardAero, Inc. (SARO)

Mercury Systems Inc and StandardAero, Inc. are both Aerospace & Defense companies. StandardAero, Inc. is the larger, with a market value of $7.0B against $4.7B — 1.5× the size. Mercury Systems Inc has negative trailing earnings, so its P/E is not meaningful; StandardAero, Inc. trades at 21.5×. StandardAero, Inc. grew revenue faster over the last twelve months: 12.6% against 7.85%. StandardAero, Inc. has the higher net margin (5.12% vs −3.02%) and the higher return on invested capital (7.63% vs 0.01%). Across the 19 metrics below, StandardAero, Inc. leads on 15 and Mercury Systems Inc on 4.

Valuation

Metric MRCY SARO Aerospace & Defense median
P/E n/m 21.53 31.81
P/S 4.49 1.10 3.55
P/B 2.95 2.53 2.59
Price to free cash flow 64.86 33.88 31.99
EV/EBITDA 63.78 11.34 18.08
EV/Sales 4.73 1.44 3.37
Earnings yield (0.67%) 4.65% 1.38%
Free cash flow yield 1.54% 2.95% 0.21%

Profitability

Metric MRCY SARO Aerospace & Defense median
Gross margin 28.58% 15.05% 25.48%
Operating margin 0.03% 9.46% 4.54%
Net margin (3.02%) 5.12% 2.22%
Free cash flow margin 6.92% 3.24% 1.43%
Return on equity (2.00%) 12.30% 6.43%
Return on assets (1.25%) 4.86% 2.70%
Return on invested capital 0.01% 7.63% 1.56%

Growth

Metric MRCY SARO Aerospace & Defense median
Revenue growth (TTM) 7.85% 12.56% 18.43%
EPS growth (last fiscal year) 23.08% 1,975.00% 24.27%
Revenue growth, 5-year CAGR 1.26% — 9.73%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric MRCY SARO Aerospace & Defense median
Debt to equity 0.29 0.84 0.24
Current ratio 2.96 2.13 2.72
Net debt to EBITDA 3.11 2.53 1.12

Dividend

Metric MRCY SARO Aerospace & Defense median
Dividend yield — — 0.90%
Payout ratio — — 0.32

Size

Metric MRCY SARO Aerospace & Defense median
Market cap 4.65b 6.95b 2.19b

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