Karman Holdings Inc. (KRMN) vs Kratos Defense & Security Solutions, Inc. (KTOS)

Karman Holdings 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 $7.7B against $5.2B — 1.5× the size. Karman Holdings Inc. trades at the lower P/E: 136× against 241×. Karman Holdings Inc. grew revenue faster over the last twelve months: 50.2% against 25.5%. Karman Holdings Inc. has the higher net margin (6.31% vs 2.03%) and the higher return on invested capital (5.09% vs 0.54%). Across the 19 metrics below, Karman Holdings Inc. leads on 13 and Kratos Defense & Security Solutions, Inc. on 6.

Valuation

Metric KRMN KTOS Aerospace & Defense median
P/E 136.03 240.94 31.60
P/S 8.87 5.07 3.36
P/B 12.42 2.25 2.99
Price to free cash flow n/m n/m 33.23
EV/EBITDA 38.62 67.12 19.00
EV/Sales 10.22 4.22 3.37
Earnings yield 0.74% 0.42% 0.90%
Free cash flow yield (0.52%) (1.67%) 0.00%

Profitability

Metric KRMN KTOS Aerospace & Defense median
Gross margin 41.67% 23.00% 25.95%
Operating margin 16.82% 1.21% 1.21%
Net margin 6.31% 2.03% 2.11%
Free cash flow margin (4.63%) (8.47%) 0.00%
Return on equity 9.50% 1.15% 2.67%
Return on assets 3.10% 0.93% 1.90%
Return on invested capital 5.09% 0.54% 0.25%

Growth

Metric KRMN KTOS Aerospace & Defense median
Revenue growth (TTM) 50.23% 25.50% 18.25%
EPS growth (last fiscal year) 62.50% 18.18% 24.80%
Revenue growth, 5-year CAGR — 12.49% 9.73%
Net income growth, 5-year CAGR — (22.68%) 0.00%

Health

Metric KRMN KTOS Aerospace & Defense median
Debt to equity 2.01 0.04 0.18
Current ratio 3.56 5.54 2.85
Net debt to EBITDA 4.60 (5.44) 1.29

Dividend

Metric KRMN KTOS Aerospace & Defense median
Dividend yield — — 0.87%
Payout ratio — — 0.30

Size

Metric KRMN KTOS Aerospace & Defense median
Market cap 5.24b 7.69b 1.94b

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