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 $1.1B against $645.1M — 1.6× the size. Red Cat Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Park Aerospace Corp. trades at 47.8×. Red Cat Holdings, Inc. grew revenue faster over the last twelve months: 1,977.5% against 20.1%. Park Aerospace Corp. has the higher net margin (16.7% vs −136.3%) and the higher return on invested capital (22.7% vs −45.8%). Across the 19 metrics below, Park Aerospace Corp. leads on 16 and Red Cat Holdings, Inc. on 3.

Valuation

Metric PKE RCAT Aerospace & Defense median
P/E 47.79 n/m 33.00
P/S 8.25 12.74 3.63
P/B 4.80 1.93 3.24
Price to free cash flow 57.36 n/m 34.01
EV/EBITDA 31.81 n/m 18.69
EV/Sales 7.08 8.32 3.94
Earnings yield 2.09% (12.16%) 1.31%
Free cash flow yield 1.74% (17.30%) 0.00%

Profitability

Metric PKE RCAT Aerospace & Defense median
Gross margin 31.92% 9.75% 25.48%
Operating margin 19.81% (150.15%) 4.54%
Net margin 16.70% (136.27%) 2.22%
Free cash flow margin 14.38% (220.44%) 0.00%
Return on equity 10.79% (34.40%) 6.43%
Return on assets 9.60% (30.05%) 2.70%
Return on invested capital 22.69% (45.82%) 1.56%

Growth

Metric PKE RCAT Aerospace & Defense median
Revenue growth (TTM) 20.10% 1,977.49% 18.43%
EPS growth (last fiscal year) 93.10% (28.95%) —
Revenue growth, 5-year CAGR 6.47% 52.12% 9.62%
Net income growth, 5-year CAGR 5.90% 0.00% 0.00%

Health

Metric PKE RCAT Aerospace & Defense median
Debt to equity 0.00 0.00 0.24
Current ratio 15.29 14.86 2.72
Net debt to EBITDA (5.82) 2.60 1.12

Dividend

Metric PKE RCAT Aerospace & Defense median
Dividend yield 3.43% — 1.04%
Payout ratio 0.82 0.00 0.00

Size

Metric PKE RCAT Aerospace & Defense median
Market cap 645.14m 1.05b 2.52b

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