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. Sturm, Ruger & Company, Inc. is the larger, with a market value of $790.9M against $520.0M — 1.5× the size. Red Cat Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Sturm, Ruger & Company, Inc. trades at 47.8×. Red Cat Holdings, Inc. grew revenue faster over the last twelve months: 836.2% against 10.6%. Sturm, Ruger & Company, Inc. has the higher net margin (2.74% vs −136.3%) and the higher return on invested capital (4.91% 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 47.79 28.48
P/S 6.58 1.31 2.95
P/B 1.00 2.68 2.68
Price to free cash flow n/m 62.24 31.70
EV/EBITDA n/m 17.52 16.85
EV/Sales 2.16 1.14 2.74
Earnings yield (23.55%) 2.09% 0.89%
Free cash flow yield (33.49%) 1.61% 0.00%

Profitability

Metric RCAT RGR Aerospace & Defense median
Gross margin 9.75% 19.95% 26.41%
Operating margin (150.15%) 2.52% 3.69%
Net margin (136.27%) 2.74% 2.74%
Free cash flow margin (220.44%) 2.11% 0.00%
Return on equity (34.40%) 5.73% 4.44%
Return on assets (30.05%) 4.53% 1.90%
Return on invested capital (45.82%) 4.91% 0.26%

Growth

Metric RCAT RGR Aerospace & Defense median
Revenue growth (TTM) 836.18% 10.60% 18.03%
EPS growth (last fiscal year) (28.95%) (115.25%) 24.80%
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 0.20
Current ratio 14.86 3.02 2.85
Net debt to EBITDA 2.60 (8.75) 1.29

Dividend

Metric RCAT RGR Aerospace & Defense median
Dividend yield — 0.89% 0.91%
Payout ratio — 0.44 0.30

Size

Metric RCAT RGR Aerospace & Defense median
Market cap 519.99m 790.92m 1.78b

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