AVAV vs. RCAT

Last updated Aug 1, 2026

AVAV (AeroVironment, Inc.) and RCAT (Red Cat Holdings, Inc.) are both stocks. Both operate in the Aerospace & Defense industry within the Industrials sector. Over the past 5 years, AVAV returned 8.12%/yr vs 19.04%/yr for RCAT. Their 0.20 correlation means their historical movements had little consistent relationship.

Performance

AVAV vs. RCAT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AeroVironment, Inc. (AVAV) and Red Cat Holdings, Inc. (RCAT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AVAV achieves a -38.25% return, which is significantly lower than RCAT's -5.04% return.

AVAV

• 1D: 1.91%
• 1M: -21.75%
• 6M: -46.35%
• YTD: -38.25%
• 1Y: -42.57%
• 3Y*: 15.09%
• 5Y*: 8.12%
• 10Y*: 18.22%
• ALL TIME*: 9.59%

RCAT

• 1D: 2.03%
• 1M: -27.87%
• 6M: -44.22%
• YTD: -5.04%
• 1Y: -8.17%
• 3Y*: 94.71%
• 5Y*: 19.04%
• 10Y*: —
• ALL TIME*: 8.70%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
AVAV AeroVironment, Inc.	$190.78M	$258.41M	$271.62M
RCAT Red Cat Holdings, Inc.	$57.87M	$66.86M	$140.79M

AVAV vs. RCAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
AVAV AeroVironment, Inc.	-38.25%	57.18%	22.10%	47.14%	38.09%	-28.62%	40.75%	16.69%
RCAT Red Cat Holdings, Inc.	-5.04%	-38.29%	1,360.23%	-6.38%	-54.81%	-30.67%	172.73%	-73.81%

Correlation

The correlation between AVAV and RCAT is 0.56, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.56
Correlation (3Y) Balances recent behavior with more history.	0.33
Correlation (5Y) Shows whether the relationship held over a longer period.	0.28
Correlation (All Time) Calculated using the full available price history since Aug 2, 2019	0.20

Over the past year, AVAV and RCAT have become more correlated (0.56) than their long-term average of 0.20, meaning their price movements have been converging.

Fundamentals

Market Cap AVAV : $7.56B RCAT : $812.08M
EPS AVAV : -$5.41 RCAT : -$0.74
PS Ratio AVAV : 5.17 RCAT : 16.32
PB Ratio AVAV : 1.71 RCAT : 3.81
Total Revenue (TTM) AVAV : $1.42B RCAT : $52.98M
Gross Profit (TTM) AVAV : $246.70M RCAT : $2.86M
EBITDA (TTM) AVAV : -$6.04M RCAT : -$79.24M

Return for Risk

AVAV vs. RCAT — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

AVAV

AVAV Risk / Return Rank: 19
AVAV Sharpe Ratio Rank: 17
AVAV Sortino Ratio Rank: 20
AVAV Omega Ratio Rank: 21
AVAV Calmar Ratio Rank: 19
AVAV Martin Ratio Rank: 20

RCAT

RCAT Risk / Return Rank: 44
RCAT Sharpe Ratio Rank: 41
RCAT Sortino Ratio Rank: 53
RCAT Omega Ratio Rank: 49
RCAT Calmar Ratio Rank: 39
RCAT Martin Ratio Rank: 39

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

AVAV vs. RCAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AeroVironment, Inc. (AVAV) and Red Cat Holdings, Inc. (RCAT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AVAV	RCAT	Difference
Sharpe ratio: Return per unit of total volatility	-0.60	-0.08	-0.52
Sortino ratio: Return per unit of downside risk	-0.59	0.75	-1.34
Omega ratio: Gain probability vs. loss probability	0.93	1.08	-0.15
Calmar ratio: Return relative to maximum drawdown	-0.67	-0.15	-0.52
Martin ratio: Return relative to average drawdown	-1.08	-0.28	-0.81

AVAV vs. RCAT - Sharpe Ratio Comparison

The current AVAV Sharpe Ratio is -0.60, which is lower than the RCAT Sharpe Ratio of -0.08. The chart below compares the historical Sharpe Ratios of AVAV and RCAT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AVAV vs. RCAT - Drawdown Comparison

The maximum AVAV drawdown since its inception was -66.65%, smaller than the maximum RCAT drawdown of -92.25%. Use the drawdown chart below to compare losses from any high point for AVAV and RCAT.

Drawdown Indicators

	AVAV	RCAT	Difference
Max Drawdown Largest peak-to-trough decline	-66.65%	-92.25%	+25.60%
Max Drawdown (1Y) Largest decline over 1 year	-66.65%	-61.00%	-5.65%
Max Drawdown (3Y) Largest decline over 3 years	-66.65%	-67.16%	+0.51%
Max Drawdown (5Y) Largest decline over 5 years	-66.65%	-84.72%	+18.07%
Max Drawdown (10Y) Largest decline over 10 years	-66.65%	—	—
Current Drawdown Current decline from peak	-63.55%	-56.62%	-6.93%
Average Drawdown Average peak-to-trough decline	-28.94%	-62.06%	+33.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	40.94%	32.97%	+7.97%

Volatility

AVAV vs. RCAT - Volatility Comparison

The current volatility for AeroVironment, Inc. (AVAV) is 23.79%, while Red Cat Holdings, Inc. (RCAT) has a volatility of 25.44%. This indicates that AVAV experiences smaller price fluctuations and is considered to be less risky than RCAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVAV	RCAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	23.79%	25.44%	-1.65%
Volatility (6M) Calculated over the trailing 6-month period	59.10%	79.33%	-20.23%
Volatility (1Y) Calculated over the trailing 1-year period	74.38%	114.36%	-39.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	57.67%	106.92%	-49.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	52.98%	164.31%	-111.33%

Dividends

AVAV vs. RCAT - Dividend Comparison

Neither AVAV nor RCAT has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

Frequently Asked Questions

Can I hold both AVAV and RCAT in my portfolio?

AVAV and RCAT have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AVAV or RCAT?

RCAT has higher volatility (25.44%) compared to AVAV (23.79%). In terms of maximum drawdown, AVAV dropped -66.65% vs RCAT's -92.25%.

Which has better risk-adjusted returns?

RCAT currently has the higher Sharpe Ratio (-0.08 vs -0.60), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.