Kratos Defense & Security Solutions, Inc. (KTOS) vs StandardAero, Inc. (SARO)

Kratos Defense & Security Solutions, Inc. and StandardAero, Inc. are both Aerospace & Defense companies. Kratos Defense & Security Solutions, Inc. is the larger, with a market value of $7.7B against $7.0B — 1.1× the size. StandardAero, Inc. trades at the lower P/E: 21.5× against 238×. Kratos Defense & Security Solutions, Inc. grew revenue faster over the last twelve months: 25.5% against 12.6%. StandardAero, Inc. has the higher net margin (5.12% vs 2.03%) and the higher return on invested capital (7.63% vs 0.54%). Across the 19 metrics below, StandardAero, Inc. leads on 13 and Kratos Defense & Security Solutions, Inc. on 6.

Valuation

Metric KTOS SARO Aerospace & Defense median
P/E 237.76 21.53 31.81
P/S 5.01 1.10 3.55
P/B 2.22 2.53 2.59
Price to free cash flow n/m 33.88 31.99
EV/EBITDA 66.05 11.34 18.08
EV/Sales 4.15 1.44 3.37
Earnings yield 0.42% 4.65% 1.38%
Free cash flow yield (1.69%) 2.95% 0.21%

Profitability

Metric KTOS SARO Aerospace & Defense median
Gross margin 23.00% 15.05% 25.48%
Operating margin 1.21% 9.46% 4.54%
Net margin 2.03% 5.12% 2.22%
Free cash flow margin (8.47%) 3.24% 1.43%
Return on equity 1.15% 12.30% 6.43%
Return on assets 0.93% 4.86% 2.70%
Return on invested capital 0.54% 7.63% 1.56%

Growth

Metric KTOS SARO Aerospace & Defense median
Revenue growth (TTM) 25.50% 12.56% 18.43%
EPS growth (last fiscal year) 18.18% 1,975.00% 24.27%
Revenue growth, 5-year CAGR 12.49% — 9.73%
Net income growth, 5-year CAGR (22.68%) — 0.00%

Health

Metric KTOS SARO Aerospace & Defense median
Debt to equity 0.04 0.84 0.24
Current ratio 5.54 2.13 2.72
Net debt to EBITDA (5.44) 2.53 1.12

Dividend

Metric KTOS SARO Aerospace & Defense median
Dividend yield — — 0.90%
Payout ratio — — 0.32

Size

Metric KTOS SARO Aerospace & Defense median
Market cap 7.65b 6.95b 2.19b

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