Rocket Lab Corporation (RKLB) vs Woodward, Inc. (WWD)

Rocket Lab Corporation and Woodward, Inc. are both Aerospace & Defense companies. Rocket Lab Corporation is the larger, with a market value of $27.5B against $18.1B — 1.5× the size. Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; Woodward, Inc. trades at 33.2×. Rocket Lab Corporation grew revenue faster over the last twelve months: 52.5% against 22.4%. Woodward, Inc. has the higher net margin (13.2% vs −21.5%) and the higher return on invested capital (12.3% vs −11.5%). Across the 19 metrics below, Woodward, Inc. leads on 14 and Rocket Lab Corporation on 5.

Valuation

Metric RKLB WWD Aerospace & Defense median
P/E n/m 33.22 28.48
P/S 38.19 4.36 2.95
P/B 8.41 7.38 2.68
Price to free cash flow n/m 48.51 31.70
EV/EBITDA n/m 24.66 16.85
EV/Sales 35.26 4.56 2.74
Earnings yield (0.58%) 3.01% 0.89%
Free cash flow yield (1.26%) 2.06% 0.00%

Profitability

Metric RKLB WWD Aerospace & Defense median
Gross margin 37.26% 29.47% 26.41%
Operating margin (29.06%) 15.64% 3.69%
Net margin (21.51%) 13.17% 2.74%
Free cash flow margin (48.13%) 8.98% 0.00%
Return on equity (7.92%) 22.34% 4.44%
Return on assets (5.76%) 11.14% 1.90%
Return on invested capital (11.46%) 12.27% 0.26%

Growth

Metric RKLB WWD Aerospace & Defense median
Revenue growth (TTM) 52.53% 22.35% 18.03%
EPS growth (last fiscal year) 2.63% 19.63% 24.80%
Revenue growth, 5-year CAGR 76.47% 7.41% 9.73%
Net income growth, 5-year CAGR 0.00% 12.96% 0.00%

Health

Metric RKLB WWD Aerospace & Defense median
Debt to equity 0.01 0.54 0.20
Current ratio 5.48 1.65 2.85
Net debt to EBITDA 4.66 0.63 1.29

Dividend

Metric RKLB WWD Aerospace & Defense median
Dividend yield — 0.40% 0.91%
Payout ratio — 0.14 0.30

Size

Metric RKLB WWD Aerospace & Defense median
Market cap 27.52b 18.12b 1.78b

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