Huntington Ingalls Industries, Inc. (HII) vs Kratos Defense & Security Solutions, Inc. (KTOS)

Huntington Ingalls Industries, Inc. and Kratos Defense & Security Solutions, Inc. are both Aerospace & Defense companies. Huntington Ingalls Industries, Inc. is the larger, with a market value of $10.5B against $7.7B — 1.4× the size. Huntington Ingalls Industries, Inc. trades at the lower P/E: 16.2× against 238×. Kratos Defense & Security Solutions, Inc. grew revenue faster over the last twelve months: 25.5% against 14.0%. Huntington Ingalls Industries, Inc. has the higher net margin (5.01% vs 2.03%) and the higher return on invested capital (5.45% vs 0.54%). Across the 21 metrics below, Huntington Ingalls Industries, Inc. leads on 14 and Kratos Defense & Security Solutions, Inc. on 7.

Valuation

Metric HII KTOS Aerospace & Defense median
P/E 16.19 237.76 31.81
P/S 0.81 5.01 3.55
P/B 2.02 2.22 2.59
Price to free cash flow n/m n/m 31.99
EV/EBITDA 12.55 66.05 18.08
EV/Sales 1.02 4.15 3.37
Earnings yield 6.18% 0.42% 1.38%
Free cash flow yield (0.79%) (1.69%) 0.21%

Profitability

Metric HII KTOS Aerospace & Defense median
Gross margin 12.40% 23.00% 25.48%
Operating margin 5.68% 1.21% 4.54%
Net margin 5.01% 2.03% 2.22%
Free cash flow margin (0.64%) (8.47%) 1.43%
Return on equity 12.97% 1.15% 6.43%
Return on assets 5.33% 0.93% 2.70%
Return on invested capital 5.45% 0.54% 1.56%

Growth

Metric HII KTOS Aerospace & Defense median
Revenue growth (TTM) 13.97% 25.50% 18.43%
EPS growth (last fiscal year) 10.24% 18.18% 24.27%
Revenue growth, 5-year CAGR 5.93% 12.49% 9.73%
Net income growth, 5-year CAGR (2.76%) (22.68%) 0.00%

Health

Metric HII KTOS Aerospace & Defense median
Debt to equity 0.51 0.04 0.24
Current ratio 1.23 5.54 2.72
Net debt to EBITDA 1.87 (5.44) 1.12

Dividend

Metric HII KTOS Aerospace & Defense median
Dividend yield 2.03% — 0.90%
Payout ratio 0.33 — 0.32

Size

Metric HII KTOS Aerospace & Defense median
Market cap 10.53b 7.65b 2.19b

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