WallStSmart

GE Aerospace (GE)vsKratos Defense & Security Solutions (KTOS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

GE Aerospace generates 3305% more annual revenue ($45.85B vs $1.35B). GE leads profitability with a 19.0% profit margin vs 1.6%. GE appears more attractively valued with a PEG of 4.94. GE earns a higher WallStSmart Score of 65/100 (C+).

GE

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 6.7Quality: 5.3
Piotroski: 4/9Altman Z: 1.69

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

GEUndervalued (+21.3%)

Margin of Safety

+21.3%

Fair Value

$376.74

Current Price

$296.56

$80.18 discount

UndervaluedFair: $376.74Overvalued
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

GE5 strengths · Avg: 8.8/10
Market CapQuality
$306.56B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
44.7%10/10

Every $100 of equity generates 45 in profit

Revenue GrowthGrowth
17.6%8/10

17.6% revenue growth

EPS GrowthGrowth
37.4%8/10

Earnings expanding 37.4% YoY

Free Cash FlowQuality
$1.79B8/10

Generating 1.8B in free cash flow

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

GE4 concerns · Avg: 3.5/10
P/E RatioValuation
36.1x4/10

Premium valuation, high expectations priced in

Price/BookValuation
16.7x4/10

Trading at 16.7x book value

Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

PEG RatioValuation
4.942/10

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 : GE

The strongest argument for GE centers on Market Cap, Return on Equity, Revenue Growth. Profitability is solid with margins at 19.0% and operating margin at 19.6%. Revenue growth of 17.6% demonstrates continued momentum.

Bull Case : KTOS

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

Bear Case : GE

The primary concerns for GE are P/E Ratio, Price/Book, Altman Z-Score.

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

GE carries more volatility with a beta of 1.37 — expect wider price swings.

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

GE generates stronger free cash flow (1.8B), providing more financial flexibility.

Monitor AEROSPACE & DEFENSE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GE scores higher overall (65/100 vs 39/100), backed by strong 19.0% margins and 17.6% revenue growth. 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.

GE Aerospace

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. As of 2018, the company operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing and venture capital and finance.

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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