Park Aerospace Corp. (PKE) vs Red Cat Holdings, Inc. (RCAT)

Park Aerospace Corp. and Red Cat Holdings, Inc. are both Aerospace & Defense companies. Red Cat Holdings, Inc. is the larger, with a market value of $748.3M against $578.8M — 1.3× the size. Red Cat Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Park Aerospace Corp. trades at 36.5×. Red Cat Holdings, Inc. grew revenue faster over the last twelve months: 1,977.5% against 27.7%. Park Aerospace Corp. has the higher net margin (18.4% vs −136.3%) and the higher return on invested capital (22.1% vs −45.8%). Across the 19 metrics below, Park Aerospace Corp. leads on 15 and Red Cat Holdings, Inc. on 4.

Valuation

Metric PKE RCAT Aerospace & Defense median
P/E 36.54 n/m 31.81
P/S 7.09 9.03 3.55
P/B 3.51 1.37 2.59
Price to free cash flow 49.93 n/m 31.99
EV/EBITDA 27.89 n/m 18.08
EV/Sales 6.53 4.61 3.37
Earnings yield 2.74% (17.16%) 1.38%
Free cash flow yield 2.00% (24.41%) 0.21%

Profitability

Metric PKE RCAT Aerospace & Defense median
Gross margin 32.68% 9.75% 25.48%
Operating margin 21.06% (150.15%) 4.54%
Net margin 18.43% (136.27%) 2.22%
Free cash flow margin 14.21% (220.44%) 1.43%
Return on equity 11.06% (34.40%) 6.43%
Return on assets 10.19% (30.05%) 2.70%
Return on invested capital 22.12% (45.82%) 1.56%

Growth

Metric PKE RCAT Aerospace & Defense median
Revenue growth (TTM) 27.71% 1,977.49% 18.43%
EPS growth (last fiscal year) 93.10% (28.95%) 24.27%
Revenue growth, 5-year CAGR 9.64% 52.12% 9.73%
Net income growth, 5-year CAGR 18.30% 0.00% 0.00%

Health

Metric PKE RCAT Aerospace & Defense median
Debt to equity 0.00 0.00 0.24
Current ratio 22.75 14.86 2.72
Net debt to EBITDA (5.82) 2.60 1.12

Dividend

Metric PKE RCAT Aerospace & Defense median
Dividend yield 1.90% — 0.90%
Payout ratio 0.69 — 0.32

Size

Metric PKE RCAT Aerospace & Defense median
Market cap 578.76m 748.30m 2.19b

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