Kratos Defense & Security Solutions (KTOS) & its Rivals Critical Analysis

Kratos Defense & Security Solutions (NASDAQ: KTOS) is one of 44 publicly-traded companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its competitors? We will compare Kratos Defense & Security Solutions to related businesses based off the strength of its analyst recommendations, dividends, risk, earnings, institutional ownership, profitability and valuation.

Valuation and Earnings

This table compares Kratos Defense & Security Solutions and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Kratos Defense & Security Solutions $701.00 million $20.10 million -18.61
Kratos Defense & Security Solutions Competitors $8.56 billion $1.20 billion 81.15

Kratos Defense & Security Solutions’ competitors have higher revenue and earnings than Kratos Defense & Security Solutions. Kratos Defense & Security Solutions is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently the more affordable than other companies in its industry.

Institutional & Insider Ownership

73.3% of Kratos Defense & Security Solutions shares are held by institutional investors. Comparatively, 70.8% of shares of all “Aerospace & Defense” companies are held by institutional investors. 23.2% of Kratos Defense & Security Solutions shares are held by insiders. Comparatively, 7.4% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Kratos Defense & Security Solutions and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kratos Defense & Security Solutions -6.29% -1.40% -0.44%
Kratos Defense & Security Solutions Competitors -2.01% 25.10% 4.00%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Kratos Defense & Security Solutions and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kratos Defense & Security Solutions 0 2 5 0 2.71
Kratos Defense & Security Solutions Competitors 551 2240 2396 89 2.38

Kratos Defense & Security Solutions currently has a consensus price target of $12.89, indicating a potential upside of 4.99%. All “Aerospace & Defense” companies have a potential upside of 6.90%. Given Kratos Defense & Security Solutions’ competitors higher possible upside, analysts clearly believe Kratos Defense & Security Solutions has less favorable growth aspects than its competitors.

Risk & Volatility

Kratos Defense & Security Solutions has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500. Comparatively, Kratos Defense & Security Solutions’ competitors have a beta of 1.05, suggesting that their average share price is 5% more volatile than the S&P 500.

Summary

Kratos Defense & Security Solutions competitors beat Kratos Defense & Security Solutions on 7 of the 12 factors compared.

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc. is a technology, intellectual property and proprietary product and solution company focused on the United States and its allies’ national security. The Kratos Government Solutions segment includes the operations of Defense Rocket Support Services, Microwave Electronics Division, Technical and Training Solutions, and Modular Systems, which provide technology-based defense solutions, involving products and services, with the focus relating to the nation’s Command, Control, Communications, Computing, Combat Systems, Intelligence, Surveillance and Reconnaissance requirements. The Unmanned Systems segment includes its unmanned aerial, ground, seaborne and command, control and communications system business. The Public Safety & Security segment provides integrated solutions for homeland security, public safety, critical infrastructure, and security and surveillance systems for government and commercial applications.

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