Merlin Inc (MRLN) vs Outdoor Holding Company (POWW)

Merlin Inc and Outdoor Holding Company are both Aerospace & Defense companies. Outdoor Holding Company is the larger, with a market value of $249.5M against $113.2M — 2.2× the size. Merlin Inc has negative trailing earnings, so its P/E is not meaningful; Outdoor Holding Company trades at 72.7×. Outdoor Holding Company has the higher net margin (6.42% vs −3,463.5%) and the higher return on invested capital (1.07% vs 0.00%). Across the 16 metrics below, Outdoor Holding Company leads on 12 and Merlin Inc on 4.

Valuation

Metric MRLN POWW Aerospace & Defense median
P/E n/m 72.67 31.81
P/S 14.01 4.72 3.55
P/B n/m 1.08 2.59
Price to free cash flow n/m 27.03 31.99
EV/EBITDA 0.64 10.75 18.08
EV/Sales (7.16) 3.62 3.37
Earnings yield (279.92%) 1.38% 1.38%
Free cash flow yield (67.90%) 3.70% 0.21%

Profitability

Metric MRLN POWW Aerospace & Defense median
Gross margin 26.34% 86.53% 25.48%
Operating margin (1,156.90%) 5.61% 4.54%
Net margin (3,463.45%) 6.42% 2.22%
Free cash flow margin (951.07%) 17.48% 1.43%
Return on equity 0.00% 1.50% 6.43%
Return on assets (239.99%) 1.29% 2.70%
Return on invested capital 0.00% 1.07% 1.56%

Growth

Metric MRLN POWW Aerospace & Defense median
Revenue growth (TTM) — 9.74% 18.43%
EPS growth (last fiscal year) 85.03% 95.61% 24.27%
Revenue growth, 5-year CAGR — (3.93%) 9.73%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric MRLN POWW Aerospace & Defense median
Debt to equity 0.00 0.04 0.24
Current ratio 14.67 4.74 2.72
Net debt to EBITDA 0.24 (6.70) 1.12

Dividend

Metric MRLN POWW Aerospace & Defense median
Dividend yield — — 0.90%
Payout ratio — — 0.32

Size

Metric MRLN POWW Aerospace & Defense median
Market cap 113.19m 249.53m 2.19b

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