Sifting through countless of stocks in the Aerospace & Defense industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in AeroVironment, Inc. or AAR Corp. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how AeroVironment, Inc. and AAR Corp. compare based on key financial metrics to determine which better meets your investment needs.

About AeroVironment, Inc. and AAR Corp.

AeroVironment, Inc., a defense technology provider, designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. The company operates in two segments, Autonomous Systems; and Space, Cyber and Directed Energy. The company provides uncrewed aircraft systems (UAS), which include small and medium UAS, and kinesis command and control software; and counter-UAS and precision strike, a loitering munitions solution that deliver actionable intelligence and precision firepower modern warfighters, including precision strike, radio frequency and kinetic C-UAS, and electronic warfare systems. It also offers autonomy, AI, and platform technologies; unmanned maritime; and uncrewed ground systems. The company provides digital beamforming technology, a multi-band/beam software defined antenna tile that allows simultaneous communication with multiple satellites; laser communications, a data transmission systems for space operations; space-qualified hardware for line of sight stabilization and control electronics in low, medium, and geostationary earth orbit, as well as cislunar orbits; phased array antenna technology to supports hypersonic telemetry and tracking, and other missile testing; and directed energy solution. It also offers cyber solutions for national security and defense operations. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Arlington, Virginia.

AAR Corp. provides products and services to commercial aviation, government, and defense markets in North America, Europe, Africa, Asia, and internationally. It operates through four segments: Parts Supply; Repair, Engineering, and Software; Government Solutions; and Legacy Commercial Programs. The company sells and leases used serviceable material and aftermarket distribution of new, and original equipment manufacturers supplied replacement parts. It also provides airframe maintenance, repair, and overhaul (MRO) services, such as airframe inspection, painting services, line maintenance, airframe modifications, structural repairs, avionics service and installation, exterior and interior refurbishment and engineering services, and support for various commercial and military aircraft; component MRO services, including repair and overhaul services, engine and airframe accessories, and interior refurbishment; software solutions comprising cloud-based, mobile, and AI-enabled aviation aftermarket software; develops PMA parts for aftermarket applications; and designs proprietary designated engineering representative repairs. In addition, the company designs, manufactures, and repairs transportation pallets; offers fleet management and operations of customer-owned aircraft; provision of supply chain logistics services, such as material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul services; and engineering, design, and system integration services for specialized command and control systems. Further, it provides asset-heavy flight hour-based component pool and repair programs for commercial airlines and distribution of consumables and expendables inventory. Additionally, it offers containers and shelters for military and humanitarian tactical deployment activities; and shelters, such as stationary and vehicle-mounted applications. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.

Latest Aerospace & Defense and AeroVironment, Inc., AAR Corp. Stock News

As of September 2, 2026, AeroVironment, Inc. had a $7.3 billion market capitalization, compared to the Aerospace & Defense median of $3.9 million. AeroVironment, Inc.’s stock is down 39.1% in 2026, down 3.3% in the previous five trading days and down 39.43% in the past year.

Currently, AeroVironment, Inc. does not have a price-earnings ratio. AeroVironment, Inc.’s trailing 12-month revenue is $2.0 billion with a -13.4% net profit margin. Year-over-year quarterly sales growth most recently was 133.2%. Analysts expect adjusted earnings to reach $3.237 per share for the current fiscal year. AeroVironment, Inc. does not currently pay a dividend.

As of September 2, 2026, AAR Corp. had a $4.9 billion market cap, putting it in the 67th percentile of all stocks. AAR Corp.’s stock is up 51.8% in 2026, down 7.5% in the previous five trading days and up 62.2% in the past year.

Currently, AAR Corp.’s price-earnings ratio is 25.5. AAR Corp.’s trailing 12-month revenue is $3.3 billion with a 5.7% net profit margin. Year-over-year quarterly sales growth most recently was 23.0%. Analysts expect adjusted earnings to reach $5.709 per share for the current fiscal year. AAR Corp. does not currently pay a dividend.

How We Compare AeroVironment, Inc. and AAR Corp. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at AeroVironment, Inc. and AAR Corp.’s stock grades to see how they measure up against one another.

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AeroVironment, Inc. and AAR Corp. Growth Grades

Company	Ticker	Growth
AeroVironment, Inc.	AVAV	D
AAR Corp.	AIR	A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

AeroVironment, Inc. has a Growth Score of 32, which is Weak. AAR Corp. has a Growth Score of 89, which is Very Strong.

The Growth Grade Winner: AAR Corp.

As you can clearly see from the Growth Grade breakdown above, AAR Corp. has a more attractive growth grade than AeroVironment, Inc.. For investors who focus solely on how a company is growing relative to other companies in the same industry, AAR Corp. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

AeroVironment, Inc. and AAR Corp.’s Momentum Grades

Company	Ticker	Momentum
AeroVironment, Inc.	AVAV	F
AAR Corp.	AIR	B

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

AeroVironment, Inc. has a Momentum Score of 13, which is Very Weak. AAR Corp. has a Momentum Score of 79, which is Strong.

The Momentum Grade Winner: AAR Corp.

As you can clearly see from the Momentum Grade breakdown above, AAR Corp. is considered to have stronger momentum compared to AeroVironment, Inc.. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, AAR Corp. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

AeroVironment, Inc. and AAR Corp.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
AeroVironment, Inc.	AVAV	D
AAR Corp.	AIR	B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

AeroVironment, Inc. has a Earnings Estimate Score of 36, which is Negative. AAR Corp. has a Earnings Estimate Score of 62, which is Positive.

The Earnings Estimate Revisions Grade Winner: AAR Corp.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, AAR Corp. has a better Earnings Estimate Revisions Grade than AeroVironment, Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, AAR Corp. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other AeroVironment, Inc. and AAR Corp. Grades

In addition to Growth, Momentum and Estimate Revisions, A+ Investor also provides grades for Value and Quality.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether AeroVironment, Inc. and AAR Corp. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, AeroVironment, Inc. or AAR Corp. Stock?

Overall, AeroVironment, Inc. stock has a Growth Score of 32, Momentum Score of 13 and Estimate Revisions Score of 36.

AAR Corp. stock has a Growth Score of 89, Momentum Score of 79 and Estimate Revisions Score of 62.

Comparing AeroVironment, Inc. and AAR Corp.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.