Kratos Defense & Security Solutions (KTOS)vsRaytheon Technologies Corp (RTX)
KTOS
Kratos Defense & Security Solutions
$79.98
+3.21%
INDUSTRIALS · Cap: $14.47B
RTX
Raytheon Technologies Corp
$195.00
+0.52%
INDUSTRIALS · Cap: $261.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Raytheon Technologies Corp generates 6479% more annual revenue ($88.60B vs $1.35B). RTX leads profitability with a 7.6% profit margin vs 1.6%. RTX appears more attractively valued with a PEG of 2.78. RTX earns a higher WallStSmart Score of 55/100 (C-).
KTOS
Hold39
out of 100
Grade: F
RTX
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1748.0%
Fair Value
$4.75
Current Price
$79.98
$75.23 premium
Margin of Safety
-95.4%
Fair Value
$99.80
Current Price
$195.00
$95.20 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Revenue surging 21.9% year-over-year
Mega-cap, among the largest globally
Generating 3.2B in free cash flow
Areas to Watch
ROE of 1.3% — below average capital efficiency
1.6% margin — thin
Operating margin of 2.9%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
7.6% margin — thin
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : KTOS
The strongest argument for KTOS centers on Debt/Equity, Revenue Growth. Revenue growth of 21.9% demonstrates continued momentum.
Bull Case : RTX
The strongest argument for RTX centers on Market Cap, Free Cash Flow. Revenue growth of 12.1% demonstrates continued momentum.
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.
Bear Case : RTX
The primary concerns for RTX are P/E Ratio, Altman Z-Score, Profit Margin.
Key Dynamics to Monitor
KTOS profiles as a growth stock while RTX is a value play — different risk/reward profiles.
KTOS carries more volatility with a beta of 1.15 — expect wider price swings.
KTOS is growing revenue faster at 21.9% — sustainability is the question.
RTX generates stronger free cash flow (3.2B), providing more financial flexibility.
Bottom Line
RTX scores higher overall (55/100 vs 39/100) and 12.1% 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.
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 →Raytheon Technologies Corp
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.
Visit Website →Compare with Other AEROSPACE & DEFENSE Stocks
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