Red Cat Holdings, Inc. (RCAT) vs Smith & Wesson Brands, Inc. (SWBI)

Red Cat Holdings, Inc. and Smith & Wesson Brands, Inc. are both Aerospace & Defense companies. Smith & Wesson Brands, Inc. is the larger, with a market value of $772.0M against $520.0M — 1.5× the size. Red Cat Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Smith & Wesson Brands, Inc. trades at 26.4×. Red Cat Holdings, Inc. grew revenue faster over the last twelve months: 836.2% against 17.0%. Smith & Wesson Brands, Inc. has the higher net margin (4.44% vs −136.3%) and the higher return on invested capital (5.42% vs −45.8%). Across the 19 metrics below, Smith & Wesson Brands, Inc. leads on 13 and Red Cat Holdings, Inc. on 6.

Valuation

Metric RCAT SWBI Aerospace & Defense median
P/E n/m 26.43 28.48
P/S 6.58 1.16 2.95
P/B 1.00 1.71 2.68
Price to free cash flow n/m 7.79 31.70
EV/EBITDA n/m 11.34 16.85
EV/Sales 2.16 1.38 2.74
Earnings yield (23.55%) 3.78% 0.89%
Free cash flow yield (33.49%) 12.84% 0.00%

Profitability

Metric RCAT SWBI Aerospace & Defense median
Gross margin 9.75% 27.44% 26.41%
Operating margin (150.15%) 6.60% 3.69%
Net margin (136.27%) 4.44% 2.74%
Free cash flow margin (220.44%) 14.92% 0.00%
Return on equity (34.40%) 6.63% 4.44%
Return on assets (30.05%) 4.54% 1.90%
Return on invested capital (45.82%) 5.42% 0.26%

Growth

Metric RCAT SWBI Aerospace & Defense median
Revenue growth (TTM) 836.18% 16.96% 18.03%
EPS growth (last fiscal year) (28.95%) 36.67% 24.80%
Revenue growth, 5-year CAGR 52.12% (13.13%) 9.73%
Net income growth, 5-year CAGR 0.00% (40.70%) 0.00%

Health

Metric RCAT SWBI Aerospace & Defense median
Debt to equity 0.00 0.19 0.20
Current ratio 14.86 3.62 2.85
Net debt to EBITDA 2.60 0.30 1.29

Dividend

Metric RCAT SWBI Aerospace & Defense median
Dividend yield — 3.64% 0.91%
Payout ratio — 0.96 0.30

Size

Metric RCAT SWBI Aerospace & Defense median
Market cap 519.99m 771.97m 1.78b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack