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 peers? We will compare Kratos Defense & Security Solutions to similar companies based on the strength of its institutional ownership, profitability, risk, analyst recommendations, dividends, valuation and earnings.

Profitability

This table compares Kratos Defense & Security Solutions and its peers’ 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 -5.04% 25.16% 3.96%

Analyst Ratings

This is a breakdown of current ratings and price targets for Kratos Defense & Security Solutions and its peers, as provided by MarketBeat.com.

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 553 2278 2426 91 2.38

Kratos Defense & Security Solutions presently has a consensus price target of $12.89, suggesting a potential downside of 3.57%. As a group, “Aerospace & Defense” companies have a potential upside of 2.53%. Given Kratos Defense & Security Solutions’ peers higher probable upside, analysts clearly believe Kratos Defense & Security Solutions has less favorable growth aspects than its peers.

Institutional & Insider Ownership

61.8% of Kratos Defense & Security Solutions shares are owned by institutional investors. Comparatively, 70.2% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 23.2% of Kratos Defense & Security Solutions shares are owned by company insiders. Comparatively, 7.4% of shares of all “Aerospace & Defense” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Kratos Defense & Security Solutions and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Kratos Defense & Security Solutions $701.00 million $20.10 million -20.26
Kratos Defense & Security Solutions Competitors $8.56 billion $1.20 billion 80.96

Kratos Defense & Security Solutions’ peers 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 peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Kratos Defense & Security Solutions has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500. Comparatively, Kratos Defense & Security Solutions’ peers have a beta of 1.06, suggesting that their average stock price is 6% more volatile than the S&P 500.

Summary

Kratos Defense & Security Solutions peers beat Kratos Defense & Security Solutions on 8 of the 12 factors compared.

About Kratos Defense & Security Solutions

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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