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

Park Aerospace Corp. and Red Cat Holdings, Inc. are both Aerospace & Defense companies. Park Aerospace Corp. and Red Cat Holdings, Inc. are of similar size ($520.0M and $498.3M). Red Cat Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Park Aerospace Corp. trades at 31.4×. Red Cat Holdings, Inc. grew revenue faster over the last twelve months: 836.2% 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 31.36 n/m 28.48
P/S 6.09 6.58 2.95
P/B 3.02 1.00 2.68
Price to free cash flow 42.85 n/m 31.70
EV/EBITDA 23.59 n/m 16.85
EV/Sales 5.52 2.16 2.74
Earnings yield 3.19% (23.55%) 0.89%
Free cash flow yield 2.33% (33.49%) 0.00%

Profitability

Metric PKE RCAT Aerospace & Defense median
Gross margin 32.68% 9.75% 26.41%
Operating margin 21.06% (150.15%) 3.69%
Net margin 18.43% (136.27%) 2.74%
Free cash flow margin 14.21% (220.44%) 0.00%
Return on equity 11.06% (34.40%) 4.44%
Return on assets 10.19% (30.05%) 1.90%
Return on invested capital 22.12% (45.82%) 0.26%

Growth

Metric PKE RCAT Aerospace & Defense median
Revenue growth (TTM) 27.71% 836.18% 18.03%
EPS growth (last fiscal year) 93.10% (28.95%) 24.80%
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 0.20
Current ratio 22.75 14.86 2.85
Net debt to EBITDA (5.82) 2.60 1.29

Dividend

Metric PKE RCAT Aerospace & Defense median
Dividend yield 2.21% — 0.91%
Payout ratio 0.69 — 0.30

Size

Metric PKE RCAT Aerospace & Defense median
Market cap 498.34m 519.99m 1.78b

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