Kratos Defense & Security Solutions (KTOS) vs. Orbital ATK (OA) Financial Analysis
Kratos Defense & Security Solutions (NASDAQ: KTOS) and Orbital ATK (NYSE:OA) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.
Valuation & Earnings
This table compares Kratos Defense & Security Solutions and Orbital ATK’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kratos Defense & Security Solutions||$668.70 million||1.81||-$60.50 million||($0.31)||-37.77|
|Orbital ATK||$4.46 billion||1.71||$293.00 million||$5.40||24.48|
This table compares Kratos Defense & Security Solutions and Orbital ATK’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kratos Defense & Security Solutions||-3.39%||-1.21%||-0.45%|
Insider & Institutional Ownership
71.4% of Kratos Defense & Security Solutions shares are held by institutional investors. Comparatively, 85.8% of Orbital ATK shares are held by institutional investors. 17.9% of Kratos Defense & Security Solutions shares are held by company insiders. Comparatively, 1.2% of Orbital ATK shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Orbital ATK pays an annual dividend of $1.28 per share and has a dividend yield of 1.0%. Kratos Defense & Security Solutions does not pay a dividend. Orbital ATK pays out 23.7% of its earnings in the form of a dividend. Orbital ATK has raised its dividend for 2 consecutive years.
Volatility & Risk
Kratos Defense & Security Solutions has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, Orbital ATK has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for Kratos Defense & Security Solutions and Orbital ATK, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kratos Defense & Security Solutions||0||4||5||0||2.56|
Kratos Defense & Security Solutions presently has a consensus target price of $13.00, suggesting a potential upside of 11.02%. Orbital ATK has a consensus target price of $120.07, suggesting a potential downside of 9.17%. Given Kratos Defense & Security Solutions’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Kratos Defense & Security Solutions is more favorable than Orbital ATK.
Orbital ATK beats Kratos Defense & Security Solutions on 10 of the 17 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.
Orbital ATK Company Profile
Orbital ATK, Inc. is an aerospace and defense systems company and supplier of related products to the United States Government, allied nations, prime contractors and other customers. The Company’s segments include Flight Systems Group, Defense Systems Group, Space Systems Group and Corporate. Its products include launch vehicles and related propulsion systems; satellites and associated components and services; tactical missiles, subsystems and defense electronics, and precision weapons, armament systems and ammunition. The Flight Systems Group segment consists of Launch Vehicles Division, Propulsion Systems Division and Aerospace Structures Division. The Defense Systems Group segment consists of Armament Systems Division, Defense Electronic Division, Missile Products Division and Small Caliber Systems Division. The Space Systems Group consists of Commercial Satellites Division, Government Satellites Division, Space Components Division and Technical Services Division.
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