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 $8.8B — 1.2× the size. Huntington Ingalls Industries, Inc. trades at the lower P/E: 15.7× against 268×. 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 15.72 268.35 33.00
P/S 0.79 5.65 3.63
P/B 1.96 2.51 3.24
Price to free cash flow n/m n/m 34.01
EV/EBITDA 12.25 76.44 18.69
EV/Sales 1.00 4.80 3.94
Earnings yield 6.36% 0.37% 1.31%
Free cash flow yield (0.82%) (1.50%) 0.00%

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%) 0.00%
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% —
Revenue growth, 5-year CAGR 5.93% 12.49% 9.62%
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 1.97% — 1.04%
Payout ratio 0.38 0.00 0.00

Size

Metric HII KTOS Aerospace & Defense median
Market cap 10.50b 8.84b 2.52b

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