Sturm, Ruger & Company, Inc. (RGR) vs Virgin Galactic Holdings, Inc. (SPCE)

Sturm, Ruger & Company, Inc. and Virgin Galactic Holdings, Inc. are both Aerospace & Defense companies. Sturm, Ruger & Company, Inc. is the larger, with a market value of $686.1M against $391.1M — 1.8× the size. Virgin Galactic Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Sturm, Ruger & Company, Inc. trades at 56.3×. Sturm, Ruger & Company, Inc. grew revenue faster over the last twelve months: 7.64% against −38.9%. Sturm, Ruger & Company, Inc. has the higher net margin (2.11% vs −23,867.4%) and the higher return on invested capital (2.04% vs −48.9%). Across the 18 metrics below, Sturm, Ruger & Company, Inc. leads on 14 and Virgin Galactic Holdings, Inc. on 4.

Valuation

Metric RGR SPCE Aerospace & Defense median
P/E 56.34 n/m 31.81
P/S 1.20 259.29 3.55
P/B 2.39 0.68 2.59
Price to free cash flow 21.41 n/m 31.99
EV/EBITDA 19.32 n/m 18.08
EV/Sales 1.00 194.66 3.37
Earnings yield 1.78% (139.09%) 1.38%
Free cash flow yield 4.67% (143.59%) 0.21%

Profitability

Metric RGR SPCE Aerospace & Defense median
Gross margin 18.70% 100.00% 25.48%
Operating margin 0.97% (24,804.53%) 4.54%
Net margin 2.11% (23,867.44%) 2.22%
Free cash flow margin 5.60% (37,231.31%) 1.43%
Return on equity 4.20% (75.13%) 6.43%
Return on assets 3.41% (28.89%) 2.70%
Return on invested capital 2.04% (48.91%) 1.56%

Growth

Metric RGR SPCE Aerospace & Defense median
Revenue growth (TTM) 7.64% (38.87%) 18.43%
EPS growth (last fiscal year) (115.25%) 60.84% 24.27%
Revenue growth, 5-year CAGR (0.82%) 45.35% 9.73%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RGR SPCE Aerospace & Defense median
Debt to equity 0.00 0.55 0.24
Current ratio 3.35 1.62 2.72
Net debt to EBITDA (8.75) 0.05 1.12

Dividend

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

Size

Metric RGR SPCE Aerospace & Defense median
Market cap 686.11m 391.12m 2.19b

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