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 $8.8B against $7.4B — 1.2× the size. StandardAero, Inc. trades at the lower P/E: 23.0× against 268×. 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 268.35 22.97 33.00
P/S 5.65 1.17 3.63
P/B 2.51 2.69 3.24
Price to free cash flow n/m 36.15 34.01
EV/EBITDA 76.44 11.92 18.69
EV/Sales 4.80 1.51 3.94
Earnings yield 0.37% 4.35% 1.31%
Free cash flow yield (1.50%) 2.77% 0.00%

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% 0.00%
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% —
Revenue growth, 5-year CAGR 12.49% — 9.62%
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 — — 1.04%
Payout ratio 0.00 — 0.00

Size

Metric KTOS SARO Aerospace & Defense median
Market cap 8.84b 7.39b 2.52b

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