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

Kratos Defense & Security Solutions, Inc. and StandardAero, Inc. are both Aerospace & Defense companies. StandardAero, Inc. is the larger, with a market value of $8.4B against $6.3B — 1.3× the size. StandardAero, Inc. trades at the lower P/E: 25.4× against 197×. Kratos Defense & Security Solutions, Inc. grew revenue faster over the last twelve months: 28.2% against 12.6%. StandardAero, Inc. has the higher net margin (5.12% vs 1.34%) and the higher return on invested capital (7.63% vs 0.20%). 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 196.94 25.38 28.48
P/S 3.84 1.30 2.95
P/B 1.83 2.98 2.68
Price to free cash flow n/m 39.95 31.70
EV/EBITDA 52.80 12.89 16.85
EV/Sales 3.07 1.64 2.74
Earnings yield 0.51% 3.94% 0.89%
Free cash flow yield (1.95%) 2.50% 0.00%

Profitability

Metric KTOS SARO Aerospace & Defense median
Gross margin 23.02% 15.05% 26.41%
Operating margin 0.39% 9.46% 3.69%
Net margin 1.34% 5.12% 2.74%
Free cash flow margin (7.47%) 3.24% 0.00%
Return on equity 0.81% 12.30% 4.44%
Return on assets 0.67% 4.86% 1.90%
Return on invested capital 0.20% 7.63% 0.26%

Growth

Metric KTOS SARO Aerospace & Defense median
Revenue growth (TTM) 28.17% 12.56% 18.03%
EPS growth (last fiscal year) 18.18% 1,975.00% 24.80%
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 0.00 0.84 0.20
Current ratio 5.42 2.13 2.85
Net debt to EBITDA (5.44) 2.53 1.29

Dividend

Metric KTOS SARO Aerospace & Defense median
Dividend yield — — 0.91%
Payout ratio — — 0.30

Size

Metric KTOS SARO Aerospace & Defense median
Market cap 6.27b 8.37b 1.78b

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