MRCY vs. RCAT

Last updated Jun 4, 2026

MRCY (Mercury Systems, Inc.) and RCAT (Red Cat Holdings, Inc.) are both stocks. MRCY operates in Aerospace & Defense (Industrials), while RCAT operates in Software - Application (Technology). Over the past 5 years, MRCY returned 10.98%/yr vs 42.10%/yr for RCAT. At a 0.15 correlation, their price movements are largely independent.

Performance

MRCY vs. RCAT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Mercury Systems, Inc. (MRCY) 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, MRCY achieves a 52.84% return, which is significantly lower than RCAT's 73.90% return.

MRCY

• 1D: -1.13%
• 1M: 42.10%
• YTD: 52.84%
• 6M: 58.89%
• 1Y: 119.49%
• 3Y*: 39.59%
• 5Y*: 10.98%
• 10Y*: 17.98%

RCAT

• 1D: -7.76%
• 1M: 25.36%
• YTD: 73.90%
• 6M: 82.65%
• 1Y: 98.99%
• 3Y*: 142.10%
• 5Y*: 42.10%
• 10Y*: —

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

MRCY vs. RCAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MRCY Mercury Systems, Inc.	52.84%	73.83%	14.85%	-18.26%	-18.74%	-37.47%	27.42%	46.14%	-7.91%	3.11%
RCAT Red Cat Holdings, Inc.	73.90%	-38.29%	1,360.23%	-6.38%	-54.81%	-30.67%	172.73%	-38.89%	-94.74%	-28.57%

Correlation

The correlation between MRCY and RCAT is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.24
Correlation (5Y) Calculated over the trailing 5-year period	0.22
Correlation (All Time) Calculated using the full available price history since Sep 25, 2017	0.15

Over the past year, MRCY and RCAT have become more correlated (0.38) than their long-term average of 0.15, meaning their price movements have been converging.

Fundamentals

Market Cap MRCY : $6.63B RCAT : $1.67B
EPS MRCY : -$0.24 RCAT : -$0.78
PS Ratio MRCY : 6.83 RCAT : 28.66
PB Ratio MRCY : 4.48 RCAT : 6.98
Total Revenue (TTM) MRCY : $966.95M RCAT : $52.98M
Gross Profit (TTM) MRCY : $277.35M RCAT : $2.86M
EBITDA (TTM) MRCY : -$12.94M RCAT : -$79.24M

Return for Risk

MRCY vs. RCAT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MRCY

MRCY Risk / Return Rank: 86
MRCY Sharpe Ratio Rank: 89
MRCY Sortino Ratio Rank: 84
MRCY Omega Ratio Rank: 87
MRCY Calmar Ratio Rank: 86
MRCY Martin Ratio Rank: 86

RCAT

RCAT Risk / Return Rank: 69
RCAT Sharpe Ratio Rank: 66
RCAT Sortino Ratio Rank: 73
RCAT Omega Ratio Rank: 68
RCAT Calmar Ratio Rank: 70
RCAT Martin Ratio Rank: 67

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MRCY vs. RCAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Mercury Systems, Inc. (MRCY) 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.

	MRCY	RCAT	Difference
Sharpe ratio Return per unit of total volatility	2.15	0.83	+1.33
Sortino ratio Return per unit of downside risk	2.69	1.92	+0.77
Omega ratio Gain probability vs. loss probability	1.39	1.22	+0.18
Calmar ratio Return relative to maximum drawdown	3.73	1.66	+2.08
Martin ratio Return relative to average drawdown	9.32	3.34	+5.98
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MRCY vs. RCAT - Sharpe Ratio Comparison

The current MRCY Sharpe Ratio is 2.15, which is higher than the RCAT Sharpe Ratio of 0.83. The chart below compares the historical Sharpe Ratios of MRCY 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.

Sharpe Ratios by Period

	MRCY	RCAT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.15	0.83	+1.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.24	0.37	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.41	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	-0.06	+0.26

Drawdowns

MRCY vs. RCAT - Drawdown Comparison

The maximum MRCY drawdown since its inception was -95.95%, roughly equal to the maximum RCAT drawdown of -99.76%. Use the drawdown chart below to compare losses from any high point for MRCY and RCAT.

Drawdown Indicators

	MRCY	RCAT	Difference
Max Drawdown Largest peak-to-trough decline	-95.95%	-99.76%	+3.81%
Max Drawdown (1Y) Largest decline over 1 year	-32.19%	-60.08%	+27.89%
Max Drawdown (3Y) Largest decline over 3 years	-39.07%	-67.16%	+28.09%
Max Drawdown (5Y) Largest decline over 5 years	-62.43%	-92.25%	+29.82%
Max Drawdown (10Y) Largest decline over 10 years	-71.73%	—	—
Current Drawdown Current decline from peak	-1.13%	-91.73%	+90.60%
Average Drawdown Average peak-to-trough decline	-53.80%	-95.53%	+41.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	12.87%	29.75%	-16.88%

Volatility

MRCY vs. RCAT - Volatility Comparison

The current volatility for Mercury Systems, Inc. (MRCY) is 16.48%, while Red Cat Holdings, Inc. (RCAT) has a volatility of 38.59%. This indicates that MRCY 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

	MRCY	RCAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.48%	38.59%	-22.11%
Volatility (6M) Calculated over the trailing 6-month period	42.71%	83.20%	-40.49%
Volatility (1Y) Calculated over the trailing 1-year period	55.79%	120.70%	-64.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	45.72%	114.95%	-69.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	43.86%	239.60%	-195.74%

Dividends

MRCY vs. RCAT - Dividend Comparison

Neither MRCY nor RCAT has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

Frequently Asked Questions

Can I hold both MRCY and RCAT in my portfolio?

MRCY and RCAT have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MRCY or RCAT?

RCAT has higher volatility (38.59%) compared to MRCY (16.48%). In terms of maximum drawdown, MRCY dropped -95.95% vs RCAT's -99.76%.

Which has better risk-adjusted returns?

MRCY currently has the higher Sharpe Ratio (2.15 vs 0.83), 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.