Kratos Defense & Security Solutions, Inc. (KTOS) vs Loar Holdings Inc. (LOAR)

Kratos Defense & Security Solutions, Inc. and Loar Holdings Inc. are both Aerospace & Defense companies. Kratos Defense & Security Solutions, Inc. is the larger, with a market value of $7.7B against $6.4B — 1.2× the size. Loar Holdings Inc. trades at the lower P/E: 94.9× against 241×. Loar Holdings Inc. grew revenue faster over the last twelve months: 29.8% against 25.5%. Loar Holdings Inc. has the higher net margin (11.6% vs 2.03%) and the higher return on invested capital (3.95% vs 0.54%). Across the 19 metrics below, Loar Holdings Inc. leads on 13 and Kratos Defense & Security Solutions, Inc. on 6.

Valuation

Metric KTOS LOAR Aerospace & Defense median
P/E 240.94 94.89 31.60
P/S 5.07 10.91 3.36
P/B 2.25 5.33 2.99
Price to free cash flow n/m 60.33 33.23
EV/EBITDA 67.12 37.00 19.00
EV/Sales 4.22 12.33 3.37
Earnings yield 0.42% 1.05% 0.90%
Free cash flow yield (1.67%) 1.66% 0.00%

Profitability

Metric KTOS LOAR Aerospace & Defense median
Gross margin 23.00% 52.18% 25.95%
Operating margin 1.21% 21.86% 1.21%
Net margin 2.03% 11.60% 2.11%
Free cash flow margin (8.47%) 18.09% 0.00%
Return on equity 1.15% 5.84% 2.67%
Return on assets 0.93% 3.56% 1.90%
Return on invested capital 0.54% 3.95% 0.25%

Growth

Metric KTOS LOAR Aerospace & Defense median
Revenue growth (TTM) 25.50% 29.76% 18.25%
EPS growth (last fiscal year) 18.18% 212.50% 24.80%
Revenue growth, 5-year CAGR 12.49% — 9.73%
Net income growth, 5-year CAGR (22.68%) — 0.00%

Health

Metric KTOS LOAR Aerospace & Defense median
Debt to equity 0.04 0.79 0.18
Current ratio 5.54 4.91 2.85
Net debt to EBITDA (5.44) 4.01 1.29

Dividend

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

Size

Metric KTOS LOAR Aerospace & Defense median
Market cap 7.69b 6.41b 1.94b

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