WallStSmart

General Dynamics Corporation (GD)vsKratos Defense & Security Solutions (KTOS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

General Dynamics Corporation generates 3802% more annual revenue ($52.55B vs $1.35B). GD leads profitability with a 8.0% profit margin vs 1.6%. GD appears more attractively valued with a PEG of 2.51. GD earns a higher WallStSmart Score of 54/100 (C-).

GD

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 6.5Value: 4.7Quality: 7.5
Piotroski: 6/9Altman Z: 2.95

KTOS

Hold

39

out of 100

Grade: F

Growth: 8.0Profit: 4.0Value: 2.0Quality: 8.5
Piotroski: 4/9Altman Z: 2.00
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GDSignificantly Overvalued (-212.4%)

Margin of Safety

-212.4%

Fair Value

$114.87

Current Price

$352.50

$237.63 premium

UndervaluedFair: $114.87Overvalued
KTOSSignificantly Overvalued (-1748.0%)

Margin of Safety

-1748.0%

Fair Value

$4.75

Current Price

$79.98

$75.23 premium

UndervaluedFair: $4.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GD1 strengths · Avg: 9.0/10
Market CapQuality
$95.31B9/10

Large-cap with strong market position

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

GD2 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.4%4/10

0.4% earnings growth

PEG RatioValuation
2.512/10

Expensive relative to growth rate

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 : GD

The strongest argument for GD centers on Market Cap.

Bull Case : KTOS

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

Bear Case : GD

The primary concerns for GD are EPS Growth, PEG Ratio.

Bear Case : KTOS

The primary concerns for KTOS are Return on Equity, Profit Margin, Operating Margin. A P/E of 596.1x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

KTOS carries more volatility with a beta of 1.15 — expect wider price swings.

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

GD generates stronger free cash flow (952M), providing more financial flexibility.

Bottom Line

GD scores higher overall (54/100 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.

General Dynamics Corporation

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Dynamics Corporation (GD) is an American aerospace and defense corporation. It is headquartered in Reston, Fairfax County, Virginia.

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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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