Mercury Systems Inc (MRCY) vs VSE Corporation (VSEC)

Mercury Systems Inc and VSE Corporation are both Aerospace & Defense companies. Mercury Systems Inc and VSE Corporation are of similar size ($5.1B and $5.1B). Mercury Systems Inc has negative trailing earnings, so its P/E is not meaningful; VSE Corporation trades at 57.6×. VSE Corporation grew revenue faster over the last twelve months: 41.6% against 7.85%. VSE Corporation has the higher net margin (5.53% vs −3.02%) and the higher return on invested capital (2.04% vs 0.01%). Across the 19 metrics below, VSE Corporation leads on 15 and Mercury Systems Inc on 4.

Valuation

Metric MRCY VSEC Aerospace & Defense median
P/E n/m 57.59 33.00
P/S 4.97 4.13 3.63
P/B 3.26 1.91 3.24
Price to free cash flow 71.77 n/m 34.01
EV/EBITDA 70.22 35.43 18.69
EV/Sales 5.21 4.78 3.94
Earnings yield (0.60%) 1.74% 1.31%
Free cash flow yield 1.39% (0.02%) 0.00%

Profitability

Metric MRCY VSEC Aerospace & Defense median
Gross margin 28.58% 15.62% 25.48%
Operating margin 0.03% 9.15% 4.54%
Net margin (3.02%) 5.53% 2.22%
Free cash flow margin 6.92% (0.08%) 0.00%
Return on equity (2.00%) 3.84% 6.43%
Return on assets (1.25%) 2.50% 2.70%
Return on invested capital 0.01% 2.04% 1.56%

Growth

Metric MRCY VSEC Aerospace & Defense median
Revenue growth (TTM) 7.85% 41.55% 18.43%
EPS growth (last fiscal year) 23.08% 24.14% —
Revenue growth, 5-year CAGR 1.26% 10.95% 9.62%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MRCY VSEC Aerospace & Defense median
Debt to equity 0.29 0.32 0.24
Current ratio 2.96 3.77 2.72
Net debt to EBITDA 3.11 1.71 1.12

Dividend

Metric MRCY VSEC Aerospace & Defense median
Dividend yield — 0.59% 1.04%
Payout ratio 0.00 0.15 0.00

Size

Metric MRCY VSEC Aerospace & Defense median
Market cap 5.06b 5.06b 2.52b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack