Red Cat Holdings, Inc. (RCAT) vs Sturm, Ruger & Company, Inc. (RGR)

Red Cat Holdings, Inc. and Sturm, Ruger & Company, Inc. are both Aerospace & Defense companies. Red Cat Holdings, Inc. and Sturm, Ruger & Company, Inc. are of similar size ($748.3M and $686.1M). Red Cat Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Sturm, Ruger & Company, Inc. trades at 56.3×. Red Cat Holdings, Inc. grew revenue faster over the last twelve months: 1,977.5% against 7.64%. Sturm, Ruger & Company, Inc. has the higher net margin (2.11% vs −136.3%) and the higher return on invested capital (2.04% vs −45.8%). Across the 18 metrics below, Sturm, Ruger & Company, Inc. leads on 13 and Red Cat Holdings, Inc. on 5.

Valuation

Metric RCAT RGR Aerospace & Defense median
P/E n/m 56.34 31.81
P/S 9.03 1.20 3.55
P/B 1.37 2.39 2.59
Price to free cash flow n/m 21.41 31.99
EV/EBITDA n/m 19.32 18.08
EV/Sales 4.61 1.00 3.37
Earnings yield (17.16%) 1.78% 1.38%
Free cash flow yield (24.41%) 4.67% 0.21%

Profitability

Metric RCAT RGR Aerospace & Defense median
Gross margin 9.75% 18.70% 25.48%
Operating margin (150.15%) 0.97% 4.54%
Net margin (136.27%) 2.11% 2.22%
Free cash flow margin (220.44%) 5.60% 1.43%
Return on equity (34.40%) 4.20% 6.43%
Return on assets (30.05%) 3.41% 2.70%
Return on invested capital (45.82%) 2.04% 1.56%

Growth

Metric RCAT RGR Aerospace & Defense median
Revenue growth (TTM) 1,977.49% 7.64% 18.43%
EPS growth (last fiscal year) (28.95%) (115.25%) 24.27%
Revenue growth, 5-year CAGR 52.12% (0.82%) 9.73%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RCAT RGR Aerospace & Defense median
Debt to equity 0.00 0.00 0.24
Current ratio 14.86 3.35 2.72
Net debt to EBITDA 2.60 (8.75) 1.12

Dividend

Metric RCAT RGR Aerospace & Defense median
Dividend yield — 1.01% 0.90%
Payout ratio — 0.59 0.32

Size

Metric RCAT RGR Aerospace & Defense median
Market cap 748.30m 686.11m 2.19b

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