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

AeroVironment, Inc. and Kratos Defense & Security Solutions, Inc. are both Aerospace & Defense companies. AeroVironment, Inc. and Kratos Defense & Security Solutions, Inc. are of similar size ($8.8B and $8.1B). AeroVironment, Inc. has negative trailing earnings, so its P/E is not meaningful; Kratos Defense & Security Solutions, Inc. trades at 268×. AeroVironment, Inc. grew revenue faster over the last twelve months: 84.4% against 25.5%. Kratos Defense & Security Solutions, Inc. has the higher net margin (2.03% vs −10.1%) and the higher return on invested capital (0.54% 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 268.35 33.00
P/S 3.78 5.65 3.63
P/B 1.72 2.51 3.24
Price to free cash flow n/m n/m 34.01
EV/EBITDA 34.74 76.44 18.69
EV/Sales 3.86 4.80 3.94
Earnings yield (2.68%) 0.37% 1.31%
Free cash flow yield (0.61%) (1.50%) 0.00%

Profitability

Metric AVAV KTOS Aerospace & Defense median
Gross margin 26.47% 23.00% 25.48%
Operating margin (12.61%) 1.21% 4.54%
Net margin (10.13%) 2.03% 2.22%
Free cash flow margin (2.24%) (8.47%) 0.00%
Return on equity (4.60%) 1.15% 6.43%
Return on assets (3.57%) 0.93% 2.70%
Return on invested capital (3.47%) 0.54% 1.56%

Growth

Metric AVAV KTOS Aerospace & Defense median
Revenue growth (TTM) 84.44% 25.50% 18.43%
EPS growth (last fiscal year) (448.39%) 18.18% —
Revenue growth, 5-year CAGR 38.00% 12.49% 9.62%
Net income growth, 5-year CAGR 0.00% (22.68%) 0.00%

Health

Metric AVAV KTOS Aerospace & Defense median
Debt to equity 0.17 0.04 0.24
Current ratio 4.26 5.54 2.72
Net debt to EBITDA 0.47 (5.44) 1.12

Dividend

Metric AVAV KTOS Aerospace & Defense median
Dividend yield 5.70% — 1.04%
Payout ratio 0.00 0.00 0.00

Size

Metric AVAV KTOS Aerospace & Defense median
Market cap 8.08b 8.84b 2.52b

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