AeroVironment, Inc. (AVAV) vs Kratos Defense & Security Solutions, Inc. (KTOS)

AeroVironment, Inc. and Kratos Defense & Security Solutions, Inc. are both Aerospace & Defense companies. Kratos Defense & Security Solutions, Inc. is the larger, with a market value of $6.3B against $5.2B — 1.2× the size. AeroVironment, Inc. has negative trailing earnings, so its P/E is not meaningful; Kratos Defense & Security Solutions, Inc. trades at 197×. AeroVironment, Inc. grew revenue faster over the last twelve months: 84.4% against 28.2%. Kratos Defense & Security Solutions, Inc. has the higher net margin (1.34% vs −10.1%) and the higher return on invested capital (0.20% vs −3.47%). Across the 20 metrics below, AeroVironment, Inc. leads on 10 and Kratos Defense & Security Solutions, Inc. on 10.

Valuation

Metric AVAV KTOS Aerospace & Defense median
P/E n/m 196.94 28.48
P/S 2.55 3.84 2.95
P/B 1.16 1.83 2.68
Price to free cash flow n/m n/m 31.70
EV/EBITDA 23.69 52.80 16.85
EV/Sales 2.63 3.07 2.74
Earnings yield (3.97%) 0.51% 0.89%
Free cash flow yield (0.90%) (1.95%) 0.00%

Profitability

Metric AVAV KTOS Aerospace & Defense median
Gross margin 26.47% 23.02% 26.41%
Operating margin (12.61%) 0.39% 3.69%
Net margin (10.13%) 1.34% 2.74%
Free cash flow margin (2.24%) (7.47%) 0.00%
Return on equity (4.60%) 0.81% 4.44%
Return on assets (3.57%) 0.67% 1.90%
Return on invested capital (3.47%) 0.20% 0.26%

Growth

Metric AVAV KTOS Aerospace & Defense median
Revenue growth (TTM) 84.44% 28.17% 18.03%
EPS growth (last fiscal year) (448.39%) 18.18% 24.80%
Revenue growth, 5-year CAGR 38.00% 12.49% 9.73%
Net income growth, 5-year CAGR 0.00% (22.68%) 0.00%

Health

Metric AVAV KTOS Aerospace & Defense median
Debt to equity 0.17 0.00 0.20
Current ratio 4.26 5.42 2.85
Net debt to EBITDA 0.47 (5.44) 1.29

Dividend

Metric AVAV KTOS Aerospace & Defense median
Dividend yield — — 0.91%
Payout ratio — — 0.30

Size

Metric AVAV KTOS Aerospace & Defense median
Market cap 5.19b 6.27b 1.78b

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