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 Leonardo DRS, 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 Leonardo DRS, Inc. and AAR Corp. compare based on key financial metrics to determine which better meets your investment needs.

About Leonardo DRS, Inc. and AAR Corp.

Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services worldwide. It operates through Advanced Sensing and Computing and Integrated Mission Systems segments. The Advanced Sensing and Computing segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing. This segment also provides network computing, which are utilized across a range of mission applications, such as platform computing on ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications. The Integrated Mission Systems segment offers electrical propulsion systems, which includes power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems, associated rugged and compact power conversion, electrical actuation systems, as well as advanced thermal management technologies, motor controllers, and instrumentation and control equipment. Leonardo DRS, Inc. was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo US Holding, LLC

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 Leonardo DRS, Inc., AAR Corp. Stock News

As of September 2, 2026, Leonardo DRS, Inc. had a $9.9 billion market capitalization, compared to the Aerospace & Defense median of $3.9 million. Leonardo DRS, Inc.’s stock is up 7.8% in 2026, down 5.5% in the previous five trading days and down 11.88% in the past year.

Currently, Leonardo DRS, Inc.’s price-earnings ratio is 31.1. Leonardo DRS, Inc.’s trailing 12-month revenue is $3.8 billion with a 8.5% net profit margin. Year-over-year quarterly sales growth most recently was 10.1%. Analysts expect adjusted earnings to reach $1.390 per share for the current fiscal year. Leonardo DRS, Inc. currently has a 1.0% dividend yield.

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 48.9% in 2026, down 9.3% 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 Leonardo DRS, 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 Leonardo DRS, Inc. and AAR Corp.’s stock grades to see how they measure up against one another.

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Leonardo DRS, Inc. and AAR Corp. Growth Grades

Company	Ticker	Growth
Leonardo DRS, Inc.	DRS	B
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.

Leonardo DRS, Inc. has a Growth Score of 73, which is Strong. 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 Leonardo DRS, 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.

Leonardo DRS, Inc. and AAR Corp.’s Quality Grades

Company	Ticker	Quality
Leonardo DRS, Inc.	DRS	A
AAR Corp.	AIR	C

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks 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 the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Leonardo DRS, Inc. has a Quality Score of 86, which is Very Strong. AAR Corp. has a Quality Score of 59, which is Average.

The Quality Grade Winner: Leonardo DRS, Inc.

As you can clearly see from the Quality Grade breakdown above, Leonardo DRS, Inc. has a better overall quality grade than AAR Corp.. For investors who are looking for companies with higher quality than others in the same industry, Leonardo DRS, Inc. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Leonardo DRS, Inc. and AAR Corp.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Leonardo DRS, Inc.	DRS	B
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.

Leonardo DRS, Inc. has a Earnings Estimate Score of 80, which is Positive. AAR Corp. has a Earnings Estimate Score of 62, which is Positive.

The Earnings Estimate Revisions Grade Winner: It’s a Tie!

Looking at the Earnings Estimate Revisions Grade breakdown above, both Leonardo DRS, Inc. and AAR Corp. have a grade of B. For those focusing solely on a company’s estimate revisions, other financial metrics will need to be evaluated to determine whether Leonardo DRS, Inc. or AAR Corp. is a better fit.

Other Leonardo DRS, Inc. and AAR Corp. Grades

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

Momentum grades help 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.

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.

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 Leonardo DRS, 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, Leonardo DRS, Inc. or AAR Corp. Stock?

Overall, Leonardo DRS, Inc. stock has a Growth Score of 73, Estimate Revisions Score of 80 and Quality Score of 86.

AAR Corp. stock has a Growth Score of 89, Estimate Revisions Score of 62 and Quality Score of 59.

Comparing Leonardo DRS, 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.