Kratos Defense & Security Solutions (NASDAQ: KTOS) and Moog (NYSE:MOG) are both aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Kratos Defense & Security Solutions and Moog’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kratos Defense & Security Solutions -6.29% -1.40% -0.44%
Moog 6.40% 15.01% 5.37%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Kratos Defense & Security Solutions and Moog, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kratos Defense & Security Solutions 0 2 5 0 2.71
Moog 0 1 0 0 2.00

Kratos Defense & Security Solutions currently has a consensus price target of $12.89, indicating a potential upside of 9.45%. Moog has a consensus price target of $75.00, indicating a potential upside of Infinity. Given Moog’s higher probable upside, analysts plainly believe Moog is more favorable than Kratos Defense & Security Solutions.

Institutional & Insider Ownership

73.3% of Kratos Defense & Security Solutions shares are held by institutional investors. 23.2% of Kratos Defense & Security Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Kratos Defense & Security Solutions and Moog’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kratos Defense & Security Solutions $701.00 million 1.46 $20.10 million ($0.66) -17.85
Moog N/A N/A N/A N/A N/A

Kratos Defense & Security Solutions has higher revenue and earnings than Moog.

Summary

Kratos Defense & Security Solutions beats Moog on 5 of the 9 factors compared between the two stocks.

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc. is a technology, intellectual property and proprietary product and solution company focused on the United States and its allies’ national security. The Kratos Government Solutions segment includes the operations of Defense Rocket Support Services, Microwave Electronics Division, Technical and Training Solutions, and Modular Systems, which provide technology-based defense solutions, involving products and services, with the focus relating to the nation’s Command, Control, Communications, Computing, Combat Systems, Intelligence, Surveillance and Reconnaissance requirements. The Unmanned Systems segment includes its unmanned aerial, ground, seaborne and command, control and communications system business. The Public Safety & Security segment provides integrated solutions for homeland security, public safety, critical infrastructure, and security and surveillance systems for government and commercial applications.

Moog Company Profile

Moog Inc. is a designer, manufacturer and integrator of precision motion and fluid controls and systems for a range of applications in aerospace and defense and industrial markets. The Company has five segments: Aircraft Controls, Space and Defense Controls, Industrial Systems, Components and Medical Devices. Its Aircraft Controls segment designs, manufactures and integrates primary and secondary flight controls for military and commercial aircraft, and provides aftermarket support. Its Space and Defense Controls segment provides controls for satellites, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance and other defense applications. Its Industrial Systems segment serves a global customer base across various markets. Its Components segment offers slip rings, fiber optic rotary joints, motors, sensors and handpieces product line. Its Medical Devices segment focuses on infusion therapy and enteral clinical nutrition.

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