Kratos Defense & Security Solutions (KTOS)vsLockheed Martin Corporation (LMT)
KTOS
Kratos Defense & Security Solutions
$63.40
-1.26%
INDUSTRIALS · Cap: $10.83B
LMT
Lockheed Martin Corporation
$519.10
-1.79%
INDUSTRIALS · Cap: $118.38B
Smart Verdict
WallStSmart Research — data-driven comparison
Lockheed Martin Corporation generates 5207% more annual revenue ($75.11B vs $1.42B). LMT leads profitability with a 6.4% profit margin vs 2.1%. LMT appears more attractively valued with a PEG of 1.09. LMT earns a higher WallStSmart Score of 55/100 (C-).
KTOS
Hold48
out of 100
Grade: D+
LMT
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for KTOS.
Margin of Safety
-53.9%
Fair Value
$340.34
Current Price
$519.10
$178.76 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 130.6% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Revenue surging 22.6% year-over-year
Every $100 of equity generates 64 in profit
Large-cap with strong market position
Areas to Watch
ROE of 0.9% — below average capital efficiency
2.1% margin — thin
Operating margin of 1.8%
Weak financial health signals
Trading at 15.9x book value
0.3% revenue growth
6.4% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : KTOS
The strongest argument for KTOS centers on EPS Growth, Debt/Equity, Altman Z-Score. Revenue growth of 22.6% demonstrates continued momentum.
Bull Case : LMT
The strongest argument for LMT centers on Return on Equity, Market Cap. PEG of 1.09 suggests the stock is reasonably priced for its growth.
Bear Case : KTOS
The primary concerns for KTOS are Return on Equity, Profit Margin, Operating Margin. A P/E of 339.7x leaves little room for execution misses. Thin 2.1% margins leave little buffer for downturns.
Bear Case : LMT
The primary concerns for LMT are Price/Book, Revenue Growth, Profit Margin. Debt-to-equity of 2.76 is elevated, increasing financial risk.
Key Dynamics to Monitor
KTOS profiles as a growth stock while LMT is a value play — different risk/reward profiles.
KTOS carries more volatility with a beta of 1.03 — expect wider price swings.
KTOS is growing revenue faster at 22.6% — sustainability is the question.
KTOS generates stronger free cash flow (-48M), providing more financial flexibility.
Bottom Line
LMT scores higher overall (55/100 vs 48/100). 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.
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.
Visit Website →Lockheed Martin Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Lockheed Martin Corporation is an American aerospace, defense, information security, and technology company with worldwide interests. It is headquartered in North Bethesda, Maryland, in the Washington, D.C., area.
Visit Website →Compare with Other AEROSPACE & DEFENSE Stocks
Want to dig deeper into these stocks?