Comparing Outdoor (NASDAQ:POWW) & Kratos Defense & Security Solutions (NASDAQ:KTOS)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Outdoor and Kratos Defense & Security Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outdoor	0	1	1	0	2.50
Kratos Defense & Security Solutions	0	2	9	0	2.82

Outdoor currently has a consensus price target of $1.75, indicating a potential upside of 33.59%. Kratos Defense & Security Solutions has a consensus price target of $44.82, indicating a potential upside of 0.48%. Given Outdoor’s higher possible upside, equities analysts plainly believe Outdoor is more favorable than Kratos Defense & Security Solutions.

Risk & Volatility

Outdoor has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Kratos Defense & Security Solutions has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Valuation & Earnings

This table compares Outdoor and Kratos Defense & Security Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Outdoor	$49.40 million	3.10	-$130.83 million	($0.46)	-2.85
Kratos Defense & Security Solutions	$1.14 billion	6.02	$16.30 million	$0.13	343.12

Kratos Defense & Security Solutions has higher revenue and earnings than Outdoor. Outdoor is trading at a lower price-to-earnings ratio than Kratos Defense & Security Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Outdoor	-38.60%	-16.17%	-13.55%
Kratos Defense & Security Solutions	1.68%	3.85%	2.68%

Institutional & Insider Ownership

26.4% of Outdoor shares are owned by institutional investors. Comparatively, 75.9% of Kratos Defense & Security Solutions shares are owned by institutional investors. 25.0% of Outdoor shares are owned by insiders. Comparatively, 2.4% of Kratos Defense & Security Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Kratos Defense & Security Solutions beats Outdoor on 11 of the 14 factors compared between the two stocks.

About Outdoor

AMMO, Inc. designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms. It also owns and operates GunBroker.com, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories. In addition, the company's products comprises of armor piercing and hard armor piercing incendiary precision ammunition; and ammunition casings for pistol ammunition through large rifle ammunition. The company has a license agreement with Jeff Rann's ammunition for game hunting. AMMO, Inc. was founded in 2016 and is based in Scottsdale, Arizona.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. engages in the provision of mission critical products, services and solutions for United States national security priorities. It operates through the Kratos Government Solutions (KGS) and Unmanned Systems (US) segments. The KGS segment consists of an aggregation of KGS operating segments, including microwave electronic products, space, satellite and cyber, training solutions. The US segment refers to the unmanned aerial, unmanned ground, unmanned seaborne and related command, control and communications system businesses. The company was founded on December 19, 1994, and is headquartered in Round Rock, TX.