Seek Returns logo

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

Updated on

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

Company Overview

ESLT’s market capitalization of 20.59 billion USD is significantly greater than AVAV’s 11.24 billion USD, highlighting its more substantial market valuation.

AVAV has a positive beta (0.81), indicating it generally moves with the broader market, whereas ESLT has a negative beta (-0.34), often moving inversely, which can offer diversification or hedging benefits.

SymbolAVAVESLT
Company NameAeroVironment, Inc.Elbit Systems Ltd.
CountryUSIL
SectorIndustrialsIndustrials
IndustryAerospace & DefenseAerospace & Defense
CEOWahid NawabiBezhalel Machlis
Price246.23 USD444.32 USD
Market Cap11.24 billion USD20.59 billion USD
Beta0.81-0.34
ExchangeNASDAQNASDAQ
IPO DateJanuary 23, 2007November 27, 1996
ADRNoNo

Historical Performance

This chart compares the performance of AVAV and ESLT 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. ESLT: 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.

ESLT

11.19%

Aerospace & Defense Industry

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

ESLT’s Return on Equity of 11.19% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

AVAV vs. ESLT: A comparison of their ROE against the Aerospace & Defense industry benchmark.

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.

ESLT

7.41%

Aerospace & Defense Industry

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

ESLT’s Return on Invested Capital of 7.41% is in line with the norm for the Aerospace & Defense industry, reflecting a standard level of efficiency in generating profits from its capital base.

AVAV vs. ESLT: A comparison of their ROIC against the Aerospace & Defense industry benchmark.

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.

ESLT

4.95%

Aerospace & Defense Industry

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

ESLT’s Net Profit Margin of 4.95% 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.

AVAV vs. ESLT: A comparison of their Net Profit Margin against the Aerospace & Defense industry benchmark.

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.

ESLT

7.44%

Aerospace & Defense Industry

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

ESLT’s Operating Profit Margin of 7.44% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.

AVAV vs. ESLT: A comparison of their Operating Margin against the Aerospace & Defense industry benchmark.

Profitability at a Glance

SymbolAVAVESLT
Return on Equity (TTM)5.06%11.19%
Return on Assets (TTM)3.89%3.12%
Return on Invested Capital (TTM)4.16%7.41%
Net Profit Margin (TTM)5.54%4.95%
Operating Profit Margin (TTM)5.18%7.44%
Gross Profit Margin (TTM)40.23%24.02%

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.

ESLT

1.21

Aerospace & Defense Industry

Max
5.13
Q3
3.36
Median
2.16
Q1
1.20
Min
0.41

ESLT’s Current Ratio of 1.21 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

AVAV vs. ESLT: A comparison of their Current Ratio against the Aerospace & Defense industry benchmark.

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.

ESLT

0.42

Aerospace & Defense Industry

Max
1.20
Q3
0.73
Median
0.51
Q1
0.09
Min
0.00

ESLT’s Debt-to-Equity Ratio of 0.42 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AVAV vs. ESLT: A comparison of their D/E Ratio against the Aerospace & Defense industry benchmark.

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.

ESLT

3.80

Aerospace & Defense Industry

Max
12.62
Q3
7.38
Median
2.95
Q1
1.68
Min
-6.68

ESLT’s Interest Coverage Ratio of 3.80 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

AVAV vs. ESLT: A comparison of their Interest Coverage against the Aerospace & Defense industry benchmark.

Financial Strength at a Glance

SymbolAVAVESLT
Current Ratio (TTM)3.521.21
Quick Ratio (TTM)2.690.70
Debt-to-Equity Ratio (TTM)0.040.42
Debt-to-Asset Ratio (TTM)0.030.12
Net Debt-to-EBITDA Ratio (TTM)-0.111.88
Interest Coverage Ratio (TTM)245.753.80

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

AVAV vs. ESLT: 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.

ESLT

0.54%

Aerospace & Defense Industry

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

ESLT’s Dividend Yield of 0.54% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.

AVAV vs. ESLT: A comparison of their Dividend Yield against the Aerospace & Defense industry benchmark.

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.

ESLT

25.10%

Aerospace & Defense Industry

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

ESLT’s Dividend Payout Ratio of 25.10% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AVAV vs. ESLT: A comparison of their Payout Ratio against the Aerospace & Defense industry benchmark.

Dividend at a Glance

SymbolAVAVESLT
Dividend Yield (TTM)0.00%0.54%
Dividend Payout Ratio (TTM)0.00%25.10%

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.

ESLT

55.92

Aerospace & Defense Industry

Max
75.34
Q3
54.40
Median
38.63
Q1
26.10
Min
16.44

A P/E Ratio of 55.92 places ESLT in the upper quartile for the Aerospace & Defense industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

AVAV vs. ESLT: A comparison of their P/E Ratio against the Aerospace & Defense industry benchmark.

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.

ESLT

3.02

Aerospace & Defense Industry

Max
10.68
Q3
5.36
Median
2.31
Q1
1.47
Min
0.01

ESLT’s Forward PEG Ratio of 3.02 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.

AVAV vs. ESLT: A comparison of their Forward PEG Ratio against the Aerospace & Defense industry benchmark.

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.

ESLT

2.87

Aerospace & Defense Industry

Max
19.34
Q3
9.54
Median
2.71
Q1
1.59
Min
0.35

ESLT’s P/S Ratio of 2.87 aligns with the market consensus for the Aerospace & Defense industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AVAV vs. ESLT: A comparison of their P/S Ratio against the Aerospace & Defense industry benchmark.

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.

ESLT

6.00

Aerospace & Defense Industry

Max
16.08
Q3
8.12
Median
4.12
Q1
2.69
Min
0.69

ESLT’s P/B Ratio of 6.00 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.

AVAV vs. ESLT: A comparison of their P/B Ratio against the Aerospace & Defense industry benchmark.

Valuation at a Glance

SymbolAVAVESLT
Price-to-Earnings Ratio (P/E, TTM)158.4555.92
Forward PEG Ratio (TTM)4.653.02
Price-to-Sales Ratio (P/S, TTM)14.272.87
Price-to-Book Ratio (P/B, TTM)7.806.00
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-821.1536.34
EV-to-EBITDA (TTM)188.2232.23
EV-to-Sales (TTM)14.263.05