Howmet Aerospace Inc (HWM)vsKratos Defense & Security Solutions (KTOS)
HWM
Howmet Aerospace Inc
$243.04
+2.76%
INDUSTRIALS · Cap: $94.83B
KTOS
Kratos Defense & Security Solutions
$63.05
+5.86%
INDUSTRIALS · Cap: $11.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Howmet Aerospace Inc generates 513% more annual revenue ($8.25B vs $1.35B). HWM leads profitability with a 18.3% profit margin vs 1.6%. HWM appears more attractively valued with a PEG of 0.80. HWM earns a higher WallStSmart Score of 69/100 (B-).
HWM
Strong Buy69
out of 100
Grade: B-
KTOS
Hold39
out of 100
Grade: F
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 30 in profit
Large-cap with strong market position
Growing faster than its price suggests
Strong operational efficiency at 26.3%
Earnings expanding 20.3% YoY
Conservative balance sheet, low leverage
Revenue surging 21.9% year-over-year
Areas to Watch
Trading at 18.2x book value
Premium valuation, high expectations priced in
ROE of 1.3% — below average capital efficiency
1.6% margin — thin
Operating margin of 2.9%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : HWM
The strongest argument for HWM centers on Return on Equity, Market Cap, PEG Ratio. Profitability is solid with margins at 18.3% and operating margin at 26.3%. Revenue growth of 14.6% 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 : HWM
The primary concerns for HWM are Price/Book, P/E Ratio. A P/E of 63.8x leaves little room for execution misses.
Bear Case : KTOS
The primary concerns for KTOS are Return on Equity, Profit Margin, Operating Margin. A P/E of 458.1x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
HWM profiles as a mature stock while KTOS is a growth play — different risk/reward profiles.
HWM carries more volatility with a beta of 1.24 — expect wider price swings.
KTOS is growing revenue faster at 21.9% — sustainability is the question.
HWM generates stronger free cash flow (530M), providing more financial flexibility.
Bottom Line
HWM scores higher overall (69/100 vs 39/100), backed by strong 18.3% margins and 14.6% revenue growth. Both earn "Strong 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.
Howmet Aerospace Inc
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Howmet Aerospace Inc. is an American aerospace company based in Pittsburgh, Pennsylvania. The company manufactures components for jet engines, fasteners and titanium structures for aerospace applications, and forged aluminum wheels for heavy trucks.
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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