Kratos Defense & Security Solutions (KTOS)vsNorthrop Grumman Corporation (NOC)
KTOS
Kratos Defense & Security Solutions
$79.98
+3.21%
INDUSTRIALS · Cap: $14.47B
NOC
Northrop Grumman Corporation
$691.21
+1.33%
INDUSTRIALS · Cap: $97.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Northrop Grumman Corporation generates 3015% more annual revenue ($41.95B vs $1.35B). NOC leads profitability with a 10.0% profit margin vs 1.6%. NOC appears more attractively valued with a PEG of 5.36. NOC earns a higher WallStSmart Score of 56/100 (C).
KTOS
Hold39
out of 100
Grade: F
NOC
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1748.0%
Fair Value
$4.75
Current Price
$79.98
$75.23 premium
Margin of Safety
+24.9%
Fair Value
$904.35
Current Price
$691.21
$213.14 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Revenue surging 21.9% year-over-year
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Generating 3.2B in free cash flow
Areas to Watch
ROE of 1.3% — below average capital efficiency
1.6% margin — thin
Operating margin of 2.9%
Expensive relative to growth rate
Grey zone — moderate risk
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : KTOS
The strongest argument for KTOS centers on Debt/Equity, Revenue Growth. Revenue growth of 21.9% demonstrates continued momentum.
Bull Case : NOC
The strongest argument for NOC centers on Market Cap, Return on Equity, Free Cash Flow.
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.
Bear Case : NOC
The primary concerns for NOC are Altman Z-Score, Debt/Equity, Piotroski F-Score.
Key Dynamics to Monitor
KTOS profiles as a growth stock while NOC is a value 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.
NOC generates stronger free cash flow (3.2B), providing more financial flexibility.
Bottom Line
NOC scores higher overall (56/100 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.
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.
Visit Website →Northrop Grumman Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Northrop Grumman Corporation (NYSE: NOC) is an American multinational aerospace and defense technology company.
Visit Website →Compare with Other AEROSPACE & DEFENSE Stocks
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