Kratos Defense & Security Solutions (NASDAQ:KTOS – Get Free Report) and Outdoor (NASDAQ:POWW – Get Free Report) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Profitability
This table compares Kratos Defense & Security Solutions and Outdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kratos Defense & Security Solutions | 1.68% | 3.85% | 2.68% |
| Outdoor | -38.60% | -16.17% | -13.55% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Kratos Defense & Security Solutions and Outdoor, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kratos Defense & Security Solutions | 0 | 2 | 9 | 0 | 2.82 |
| Outdoor | 0 | 1 | 1 | 0 | 2.50 |
Volatility & Risk
Kratos Defense & Security Solutions has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Outdoor has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.
Institutional and Insider Ownership
75.9% of Kratos Defense & Security Solutions shares are owned by institutional investors. Comparatively, 26.4% of Outdoor shares are owned by institutional investors. 2.4% of Kratos Defense & Security Solutions shares are owned by company insiders. Comparatively, 25.0% of Outdoor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Kratos Defense & Security Solutions and Outdoor”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kratos Defense & Security Solutions | $1.14 billion | 6.02 | $16.30 million | $0.13 | 343.12 |
| Outdoor | $49.40 million | 3.10 | -$130.83 million | ($0.46) | -2.85 |
Kratos Defense & Security Solutions has higher revenue and earnings than Outdoor. Outdoor is trading at a lower price-to-earnings ratio than Kratos Defense & Security Solutions, indicating that it is currently the more affordable of the two stocks.
Summary
Kratos Defense & Security Solutions beats Outdoor on 11 of the 14 factors compared between the two stocks.
About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. engages in the provision of mission critical products, services and solutions for United States national security priorities. It operates through the Kratos Government Solutions (KGS) and Unmanned Systems (US) segments. The KGS segment consists of an aggregation of KGS operating segments, including microwave electronic products, space, satellite and cyber, training solutions. The US segment refers to the unmanned aerial, unmanned ground, unmanned seaborne and related command, control and communications system businesses. The company was founded on December 19, 1994, and is headquartered in Round Rock, TX.
About Outdoor
AMMO, Inc. designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms. It also owns and operates GunBroker.com, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories. In addition, the company's products comprises of armor piercing and hard armor piercing incendiary precision ammunition; and ammunition casings for pistol ammunition through large rifle ammunition. The company has a license agreement with Jeff Rann's ammunition for game hunting. AMMO, Inc. was founded in 2016 and is based in Scottsdale, Arizona.
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