WallStSmart

Emerson Electric Company (EMR)vsKratos Defense & Security Solutions (KTOS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Emerson Electric Company generates 1250% more annual revenue ($18.19B vs $1.35B). EMR leads profitability with a 12.7% profit margin vs 1.6%. EMR appears more attractively valued with a PEG of 1.75. EMR earns a higher WallStSmart Score of 51/100 (C-).

EMR

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 6.5Value: 4.3Quality: 5.3
Piotroski: 5/9Altman Z: 2.57

KTOS

Hold

39

out of 100

Grade: F

Growth: 8.0Profit: 4.0Value: 3.0Quality: 8.5
Piotroski: 4/9Altman Z: 2.00

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EMR2 strengths · Avg: 8.5/10
Market CapQuality
$78.93B9/10

Large-cap with strong market position

Operating MarginProfitability
24.6%8/10

Strong operational efficiency at 24.6%

KTOS2 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
21.9%8/10

Revenue surging 21.9% year-over-year

Areas to Watch

EMR4 concerns · Avg: 4.0/10
PEG RatioValuation
1.754/10

Expensive relative to growth rate

P/E RatioValuation
34.3x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

EPS GrowthGrowth
4.9%4/10

4.9% earnings growth

KTOS4 concerns · Avg: 2.8/10
Return on EquityProfitability
1.3%3/10

ROE of 1.3% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

Operating MarginProfitability
2.9%3/10

Operating margin of 2.9%

PEG RatioValuation
34.122/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : EMR

The strongest argument for EMR centers on Market Cap, Operating Margin.

Bull Case : KTOS

The strongest argument for KTOS centers on Debt/Equity, Revenue Growth. Revenue growth of 21.9% demonstrates continued momentum.

Bear Case : EMR

The primary concerns for EMR are PEG Ratio, P/E Ratio, Revenue Growth.

Bear Case : KTOS

The primary concerns for KTOS are Return on Equity, Profit Margin, Operating Margin. A P/E of 458.1x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

EMR profiles as a value stock while KTOS is a growth play — different risk/reward profiles.

EMR carries more volatility with a beta of 1.28 — expect wider price swings.

KTOS is growing revenue faster at 21.9% — sustainability is the question.

EMR generates stronger free cash flow (602M), providing more financial flexibility.

Bottom Line

EMR scores higher overall (51/100 vs 39/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Emerson Electric Company

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Emerson Electric Co. is an American multinational corporation headquartered in Ferguson, Missouri. The Fortune 500 company manufactures products and provides engineering services for a wide range of industrial, commercial, and consumer markets.

Kratos Defense & Security Solutions

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Kratos Defense & Security Solutions, Inc. is a government contractor for the US Department of Defense. The company is headquartered in San Diego, California.

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