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 $33.1B against $19.7B — 1.7× the size. Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; Woodward, Inc. trades at 35.5×. 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 35.52 31.81
P/S 41.62 4.66 3.55
P/B 9.17 7.90 2.59
Price to free cash flow n/m 51.87 31.99
EV/EBITDA n/m 26.29 18.08
EV/Sales 38.69 4.87 3.37
Earnings yield (0.53%) 2.82% 1.38%
Free cash flow yield (1.16%) 1.93% 0.21%

Profitability

Metric RKLB WWD Aerospace & Defense median
Gross margin 37.26% 29.47% 25.48%
Operating margin (29.06%) 15.64% 4.54%
Net margin (21.51%) 13.17% 2.22%
Free cash flow margin (48.13%) 8.98% 1.43%
Return on equity (7.92%) 22.34% 6.43%
Return on assets (5.76%) 11.14% 2.70%
Return on invested capital (11.46%) 12.27% 1.56%

Growth

Metric RKLB WWD Aerospace & Defense median
Revenue growth (TTM) 52.53% 22.35% 18.43%
EPS growth (last fiscal year) 2.63% 19.63% 24.27%
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 0.24
Current ratio 5.48 1.65 2.72
Net debt to EBITDA 4.66 0.63 1.12

Dividend

Metric RKLB WWD Aerospace & Defense median
Dividend yield — 0.38% 0.90%
Payout ratio — 0.14 0.32

Size

Metric RKLB WWD Aerospace & Defense median
Market cap 33.06b 19.68b 2.19b

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