Virgin Galactic Holdings, Inc. (SPCE) vs Smith & Wesson Brands, Inc. (SWBI)

Virgin Galactic Holdings, Inc. and Smith & Wesson Brands, Inc. are both Aerospace & Defense companies. Smith & Wesson Brands, Inc. is the larger, with a market value of $634.9M against $391.1M — 1.6× the size. Virgin Galactic Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Smith & Wesson Brands, Inc. trades at 26.2×. Smith & Wesson Brands, Inc. grew revenue faster over the last twelve months: 17.0% against −38.9%. Smith & Wesson Brands, Inc. has the higher net margin (4.44% vs −23,867.4%) and the higher return on invested capital (5.42% vs −48.9%). Across the 19 metrics below, Smith & Wesson Brands, Inc. leads on 13 and Virgin Galactic Holdings, Inc. on 6.

Valuation

Metric SPCE SWBI Aerospace & Defense median
P/E n/m 26.19 31.81
P/S 259.29 1.15 3.55
P/B 0.68 1.69 2.59
Price to free cash flow n/m 7.71 31.99
EV/EBITDA n/m 11.26 18.08
EV/Sales 194.66 1.37 3.37
Earnings yield (139.09%) 3.82% 1.38%
Free cash flow yield (143.59%) 12.96% 0.21%

Profitability

Metric SPCE SWBI Aerospace & Defense median
Gross margin 100.00% 27.44% 25.48%
Operating margin (24,804.53%) 6.60% 4.54%
Net margin (23,867.44%) 4.44% 2.22%
Free cash flow margin (37,231.31%) 14.92% 1.43%
Return on equity (75.13%) 6.63% 6.43%
Return on assets (28.89%) 4.54% 2.70%
Return on invested capital (48.91%) 5.42% 1.56%

Growth

Metric SPCE SWBI Aerospace & Defense median
Revenue growth (TTM) (38.87%) 16.96% 18.43%
EPS growth (last fiscal year) 60.84% 36.67% 24.27%
Revenue growth, 5-year CAGR 45.35% (13.13%) 9.73%
Net income growth, 5-year CAGR 0.00% (40.70%) 0.00%

Health

Metric SPCE SWBI Aerospace & Defense median
Debt to equity 0.55 0.19 0.24
Current ratio 1.62 3.62 2.72
Net debt to EBITDA 0.05 0.30 1.12

Dividend

Metric SPCE SWBI Aerospace & Defense median
Dividend yield — 3.68% 0.90%
Payout ratio — 0.96 0.32

Size

Metric SPCE SWBI Aerospace & Defense median
Market cap 391.12m 634.93m 2.19b

Compare with another peer

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