Big Move for ESLT, but Do VSEC’s Margins and Growth Give It the Edge?
VSE (VSEC) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Elbit Systems (ESLT), suggesting you may be better off investing in VSEC
- VSEC’s quarterly revenue growth was 41.1%, vs. ESLT’s 21.3%.
- In addition, its Last 12 Months revenue growth came in at 33.9%, ahead of ESLT’s 19.2%.
- VSEC leads on profitability over both periods – LTM margin of 8.9% and 3-year average of 9.4%.
ESLT develops and supplies airborne, land, and naval systems, military and commercial aviation products, communication equipment, cyber intelligence, autonomous, and homeland security solutions. VSEC diversified aftermarket company providing parts supply, inventory management, e-commerce fulfillment, and logistics services across aviation, fleet, and federal defense sectors.
Valuation & Performance Overview
| ESLT | VSEC | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 38.6 | 35.6 | VSEC |
| Revenue Growth | |||
| Last Quarter | 21.3% | 41.1% | VSEC |
| Last 12 Months | 19.2% | 33.9% | VSEC |
| Last 3 Year Average | 11.1% | 27.1% | VSEC |
| Operating Margins | |||
| Last 12 Months | 7.9% | 8.9% | VSEC |
| Last 3 Year Average | 6.9% | 9.4% | VSEC |
| Momentum | |||
| Last 3 Year Return | 158.1% | 318.6% | ESLT |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: ESLT Revenue Comparison | VSEC Revenue Comparison
See more margin details: ESLT Operating Income Comparison | VSEC Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell VSEC Stock to see if VSE’s edge holds up under the hood or if Elbit Systems still has cards to play (see Buy or Sell ESLT Stock).
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Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| ESLT Return | -15% | 35% | -5% | 31% | 22% | 96% | 218% | ||
| VSEC Return | 3% | 60% | -22% | 39% | 48% | 76% | 347% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 12% | 101% | ||
| Monthly Win Rates [3] | |||||||||
| ESLT Win Rate | 42% | 50% | 42% | 75% | 50% | 100% | 60% | ||
| VSEC Win Rate | 58% | 67% | 25% | 67% | 67% | 86% | 62% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 62% | 63% | <=== | |
| Max Drawdowns [4] | |||||||||
| ESLT Max Drawdown | -27% | -5% | -7% | -1% | -17% | 0% | -9% | <=== | |
| VSEC Max Drawdown | -64% | -10% | -45% | -12% | -11% | -5% | -25% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | ||
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 9/11/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read VSEC Dip Buyer Analyses to see how the stock has fallen and recovered in the past.