AVAV vs. CP: A Head-to-Head Stock Comparison

Updated on July 7, 2025

Here’s a clear look at AVAV and CP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

CP’s market capitalization of 75.39 billion USD is significantly greater than AVAV’s 11.24 billion USD, highlighting its more substantial market valuation.

With betas of 0.81 for AVAV and 1.07 for CP, both stocks show similar sensitivity to overall market movements.

Symbol	AVAV	CP
Company Name	AeroVironment, Inc.	Canadian Pacific Railway Limited
Country	US	CA
Sector	Industrials	Industrials
Industry	Aerospace & Defense	Railroads
CEO	Wahid Nawabi	Keith E. Creel
Price	246.23 USD	81.03 USD
Market Cap	11.24 billion USD	75.39 billion USD
Beta	0.81	1.07
Exchange	NASDAQ	NYSE
IPO Date	January 23, 2007	December 30, 1983
ADR	No	No

Historical Performance

This chart compares the performance of AVAV and CP by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AVAV vs. CP: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AVAV

5.06%

Aerospace & Defense Industry

Max: 42.57%
Q3: 16.67%
Median: 8.39%
Q1: -0.77%
Min: -23.36%

AVAV’s Return on Equity of 5.06% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

CP

8.37%

Railroads Industry

Max: 40.80%
Q3: 24.36%
Median: 18.32%
Q1: 11.84%
Min: 8.37%

CP’s Return on Equity of 8.37% is in the lower quartile for the Railroads industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

AVAV vs. CP: A comparison of their ROE against their respective Aerospace & Defense and Railroads industry benchmarks.

Return on Invested Capital

AVAV

4.16%

Aerospace & Defense Industry

Max: 23.42%
Q3: 8.86%
Median: 5.47%
Q1: -5.60%
Min: -22.46%

AVAV’s Return on Invested Capital of 4.16% is in line with the norm for the Aerospace & Defense industry, reflecting a standard level of efficiency in generating profits from its capital base.

CP

4.91%

Railroads Industry

Max: 11.47%
Q3: 9.66%
Median: 9.08%
Q1: 7.36%
Min: 4.32%

CP’s Return on Invested Capital of 4.91% is in the lower quartile for the Railroads industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.

AVAV vs. CP: A comparison of their ROIC against their respective Aerospace & Defense and Railroads industry benchmarks.

Net Profit Margin

AVAV

5.54%

Aerospace & Defense Industry

Max: 22.67%
Q3: 8.04%
Median: 4.95%
Q1: -5.07%
Min: -16.58%

AVAV’s Net Profit Margin of 5.54% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.

CP

26.00%

Railroads Industry

Max: 27.77%
Q3: 26.50%
Median: 24.33%
Q1: 9.34%
Min: 4.79%

CP’s Net Profit Margin of 26.00% is aligned with the median group of its peers in the Railroads industry. This indicates its ability to convert revenue into profit is typical for the sector.

AVAV vs. CP: A comparison of their Net Profit Margin against their respective Aerospace & Defense and Railroads industry benchmarks.

Operating Profit Margin

AVAV

5.18%

Aerospace & Defense Industry

Max: 22.01%
Q3: 11.49%
Median: 8.96%
Q1: 3.77%
Min: -4.96%

AVAV’s Operating Profit Margin of 5.18% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.

CP

36.27%

Railroads Industry

Max: 41.08%
Q3: 37.86%
Median: 35.40%
Q1: 15.99%
Min: 10.85%

CP’s Operating Profit Margin of 36.27% is around the midpoint for the Railroads industry, indicating that its efficiency in managing core business operations is typical for the sector.

AVAV vs. CP: A comparison of their Operating Margin against their respective Aerospace & Defense and Railroads industry benchmarks.

Profitability at a Glance

Symbol	AVAV	CP
Return on Equity (TTM)	5.06%	8.37%
Return on Assets (TTM)	3.89%	4.38%
Return on Invested Capital (TTM)	4.16%	4.91%
Net Profit Margin (TTM)	5.54%	26.00%
Operating Profit Margin (TTM)	5.18%	36.27%
Gross Profit Margin (TTM)	40.23%	41.02%

Financial Strength

Current Ratio

AVAV

3.52

Aerospace & Defense Industry

Max: 5.13
Q3: 3.36
Median: 2.16
Q1: 1.20
Min: 0.41

AVAV’s Current Ratio of 3.52 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

CP

0.81

Railroads Industry

Max: 1.97
Q3: 1.41
Median: 0.85
Q1: 0.77
Min: 0.62

CP’s Current Ratio of 0.81 aligns with the median group of the Railroads industry, indicating that its short-term liquidity is in line with its sector peers.

AVAV vs. CP: A comparison of their Current Ratio against their respective Aerospace & Defense and Railroads industry benchmarks.

Debt-to-Equity Ratio

AVAV

0.04

Aerospace & Defense Industry

Max: 1.20
Q3: 0.73
Median: 0.51
Q1: 0.09
Min: 0.00

Falling into the lower quartile for the Aerospace & Defense industry, AVAV’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

CP

0.47

Railroads Industry

Max: 2.11
Q3: 1.44
Median: 1.19
Q1: 0.72
Min: 0.39

Falling into the lower quartile for the Railroads industry, CP’s Debt-to-Equity Ratio of 0.47 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

AVAV vs. CP: A comparison of their D/E Ratio against their respective Aerospace & Defense and Railroads industry benchmarks.

Interest Coverage Ratio

AVAV

245.75

Aerospace & Defense Industry

Max: 12.62
Q3: 7.38
Median: 2.95
Q1: 1.68
Min: -6.68

With an Interest Coverage Ratio of 245.75, AVAV demonstrates a superior capacity to service its debt, placing it well above the typical range for the Aerospace & Defense industry. This stems from either robust earnings or a conservative debt load.

CP

6.63

Railroads Industry

Max: 8.45
Q3: 7.16
Median: 6.40
Q1: 5.53
Min: 4.30

CP’s Interest Coverage Ratio of 6.63 is positioned comfortably within the norm for the Railroads industry, indicating a standard and healthy capacity to cover its interest payments.

AVAV vs. CP: A comparison of their Interest Coverage against their respective Aerospace & Defense and Railroads industry benchmarks.

Financial Strength at a Glance

Symbol	AVAV	CP
Current Ratio (TTM)	3.52	0.81
Quick Ratio (TTM)	2.69	0.70
Debt-to-Equity Ratio (TTM)	0.04	0.47
Debt-to-Asset Ratio (TTM)	0.03	0.26
Net Debt-to-EBITDA Ratio (TTM)	-0.11	2.86
Interest Coverage Ratio (TTM)	245.75	6.63

Growth

The following charts compare key year-over-year (YoY) growth metrics for AVAV and CP. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AVAV vs. CP: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AVAV vs. CP: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AVAV vs. CP: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AVAV

0.00%

Aerospace & Defense Industry

Max: 6.00%
Q3: 0.66%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

AVAV currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

CP

0.73%

Railroads Industry

Max: 4.30%
Q3: 2.64%
Median: 2.21%
Q1: 1.33%
Min: 0.43%

CP’s Dividend Yield of 0.73% is in the lower quartile for the Railroads industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

AVAV vs. CP: A comparison of their Dividend Yield against their respective Aerospace & Defense and Railroads industry benchmarks.

Dividend Payout Ratio

AVAV

0.00%

Aerospace & Defense Industry

Max: 172.02%
Q3: 32.47%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

AVAV has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

CP

18.40%

Railroads Industry

Max: 69.30%
Q3: 47.83%
Median: 32.93%
Q1: 18.85%
Min: 13.29%

CP’s Dividend Payout Ratio of 18.40% is in the lower quartile for the Railroads industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

AVAV vs. CP: A comparison of their Payout Ratio against their respective Aerospace & Defense and Railroads industry benchmarks.

Dividend at a Glance

Symbol	AVAV	CP
Dividend Yield (TTM)	0.00%	0.73%
Dividend Payout Ratio (TTM)	0.00%	18.40%

Valuation

Price-to-Earnings Ratio

AVAV

158.45

Aerospace & Defense Industry

Max: 75.34
Q3: 54.40
Median: 38.63
Q1: 26.10
Min: 16.44

At 158.45, AVAV’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Aerospace & Defense industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

CP

26.63

Railroads Industry

Max: 26.01
Q3: 22.00
Median: 19.48
Q1: 17.09
Min: 16.09

At 26.63, CP’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Railroads industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

AVAV vs. CP: A comparison of their P/E Ratio against their respective Aerospace & Defense and Railroads industry benchmarks.

Forward P/E to Growth Ratio

AVAV

4.65

Aerospace & Defense Industry

Max: 10.68
Q3: 5.36
Median: 2.31
Q1: 1.47
Min: 0.01

AVAV’s Forward PEG Ratio of 4.65 is within the middle range of its peers in the Aerospace & Defense industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

CP

1.90

Railroads Industry

Max: 1.85
Q3: 1.84
Median: 1.79
Q1: 1.59
Min: 1.52

The Forward PEG Ratio is often not a primary valuation metric in the Railroads industry.

AVAV vs. CP: A comparison of their Forward PEG Ratio against their respective Aerospace & Defense and Railroads industry benchmarks.

Price-to-Sales Ratio

AVAV

14.27

Aerospace & Defense Industry

Max: 19.34
Q3: 9.54
Median: 2.71
Q1: 1.59
Min: 0.35

AVAV’s P/S Ratio of 14.27 is in the upper echelon for the Aerospace & Defense industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

CP

6.90

Railroads Industry

Max: 6.74
Q3: 5.30
Median: 4.55
Q1: 2.73
Min: 0.42

With a P/S Ratio of 6.90, CP trades at a valuation that eclipses even the highest in the Railroads industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

AVAV vs. CP: A comparison of their P/S Ratio against their respective Aerospace & Defense and Railroads industry benchmarks.

Price-to-Book Ratio

AVAV

7.80

Aerospace & Defense Industry

Max: 16.08
Q3: 8.12
Median: 4.12
Q1: 2.69
Min: 0.69

AVAV’s P/B Ratio of 7.80 is within the conventional range for the Aerospace & Defense industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

CP

2.13

Railroads Industry

Max: 5.11
Q3: 4.36
Median: 3.70
Q1: 1.98
Min: 1.00

CP’s P/B Ratio of 2.13 is within the conventional range for the Railroads industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

AVAV vs. CP: A comparison of their P/B Ratio against their respective Aerospace & Defense and Railroads industry benchmarks.

Valuation at a Glance

Symbol	AVAV	CP
Price-to-Earnings Ratio (P/E, TTM)	158.45	26.63
Forward PEG Ratio (TTM)	4.65	1.90
Price-to-Sales Ratio (P/S, TTM)	14.27	6.90
Price-to-Book Ratio (P/B, TTM)	7.80	2.13
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	-821.15	43.44
EV-to-EBITDA (TTM)	188.22	16.19
EV-to-Sales (TTM)	14.26	8.38