AeroVironment Stock vs Competition: Who Wins?
AeroVironment‘s stock has delivered strong past-year returns, though some defense peers surged further. How does it measure up amidst the rapidly scaling drone and defense tech market? A closer look reveals exceptional revenue expansion, bolstered by acquisitions, yet persistent unprofitability and negative free cash flow remain key concerns. This dynamic suggests strong market demand for its UAS and missile systems, but challenges in consistent earnings and a premium valuation, with contract uncertainties adding to the mix.
- AVAV’s -5.1% operating margin, lowest among peers (RTX: 10.5%), reflects heavy R&D investment and acquisition integration costs.
- AVAV’s 79.9% revenue growth, outpacing peers, stems from strong demand for loitering munitions like Switchblade and significant defense contract wins.
- AVAV’s 60.1% stock gain, despite a -163.2 PE, shows investor confidence in future profitability from strong revenue growth and demand for its defense tech.
Here’s how AeroVironment stacks up across size, valuation, and profitability versus key peers.
| AVAV | KTOS | NOC | LMT | RTX | TXT | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 11.4 | 15.2 | 108.2 | 154.2 | 277.8 | 17.3 |
| Revenue ($ Bil) | 1.4 | 1.3 | 42.0 | 75.0 | 88.6 | 14.8 |
| PE Ratio | -163.2 | 758.3 | 25.9 | 30.7 | 41.3 | 18.8 |
| LTM Revenue Growth | 79.9% | 14.0% | 2.2% | 5.6% | 9.7% | 8.0% |
| LTM Operating Margin | -5.1% | 1.9% | 10.2% | 10.3% | 10.5% | 6.8% |
| LTM FCF Margin | -18.5% | -7.3% | 7.9% | 9.2% | 8.4% | 6.3% |
| 12M Market Return | 60.1% | 242.0% | 62.9% | 51.8% | 56.9% | 33.3% |
For more details on AeroVironment, read Buy or Sell AVAV Stock. Below we compare AVAV’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
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| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| AVAV | 79.9% | 14.5% | 32.6% | 21.3% | |
| KTOS | 14.0% | – | 9.6% | 15.5% | 10.7% |
| NOC | 2.2% | 2.2% | 4.4% | 7.3% | |
| LMT | 5.6% | 5.6% | 5.1% | 2.4% | |
| RTX | 9.7% | 9.7% | 17.1% | 2.8% | |
| TXT | 8.0% | 8.0% | 0.1% | 6.3% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| AVAV | -5.1% | 7.2% | 10.0% | -4.2% | |
| KTOS | 1.9% | – | 2.9% | 3.1% | 0.5% |
| NOC | 10.2% | 10.2% | 10.6% | 6.5% | |
| LMT | 10.3% | 10.3% | 9.9% | 12.6% | |
| RTX | 10.5% | 10.5% | 8.1% | 5.2% | |
| TXT | 6.8% | 6.8% | 6.2% | 7.7% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| AVAV | -163.2 | 155.4 | 70.2 | -17.9 | |
| KTOS | 758.3 | – | 693.9 | -386.5 | -69.7 |
| NOC | 25.9 | 19.6 | 16.5 | 34.5 | |
| LMT | 30.7 | 22.4 | 21.7 | 16.4 | |
| RTX | 41.3 | 36.5 | 32.3 | 37.6 | |
| TXT | 18.8 | 16.9 | 17.5 | 17.4 |
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