Terran Orbital (NYSE:LLAP – Get Rating) and Kratos Defense & Security Solutions (NASDAQ:KTOS – Get Rating) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.
Volatility & Risk
Terran Orbital has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Kratos Defense & Security Solutions has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.
This table compares Terran Orbital and Kratos Defense & Security Solutions’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Terran Orbital||N/A||N/A||-$2.45 million||N/A||N/A|
|Kratos Defense & Security Solutions||$811.50 million||2.27||-$2.00 million||($0.15)||-98.27|
Kratos Defense & Security Solutions has higher revenue and earnings than Terran Orbital.
This table compares Terran Orbital and Kratos Defense & Security Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kratos Defense & Security Solutions||-2.43%||2.05%||1.22%|
Insider and Institutional Ownership
85.5% of Kratos Defense & Security Solutions shares are held by institutional investors. 2.1% of Kratos Defense & Security Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a summary of recent recommendations for Terran Orbital and Kratos Defense & Security Solutions, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kratos Defense & Security Solutions||0||1||6||0||2.86|
Terran Orbital currently has a consensus price target of $16.67, indicating a potential upside of 182.97%. Kratos Defense & Security Solutions has a consensus price target of $24.88, indicating a potential upside of 68.76%. Given Terran Orbital’s stronger consensus rating and higher probable upside, equities analysts plainly believe Terran Orbital is more favorable than Kratos Defense & Security Solutions.
Kratos Defense & Security Solutions beats Terran Orbital on 6 of the 11 factors compared between the two stocks.
About Terran Orbital (Get Rating)
Terran Orbital Corporation manufactures, owns, and operates satellites and related space-based solutions that provide earth observation, data and analytics to defense, intelligence, civil, and commercial end users in the United States. The company operates through two segments, Satellite Solutions and Earth Observation Solutions. The Satellite Solutions segment offers end-to-end satellite solutions, including spacecraft design, development, launch services, and on-orbit operations for critical missions across a range of applications in various orbits to governmental agencies and commercial businesses. The Earth Observation Solutions segment develops, builds, launches, and operates a constellation of earth observation satellites that has synthetic aperture radar and electro-optical capabilities to provide earth observation data and mission solutions. It also focuses to provide secondary payload solutions and onboard data processing capabilities on its satellite constellation, including sensors, optical links, or other mission solutions. The company was founded in 2013 and is headquartered in Boca Raton, Florida.
About Kratos Defense & Security Solutions (Get Rating)
Kratos Defense & Security Solutions, Inc. operates as a government contractor of the U.S. Department of Defense. The company operates through two segments, Kratos Government Solutions and Unmanned Systems. The Kratos Government Solutions segment offers microwave electronic products, space and satellite communications, training and cybersecurity/ warfare, C5ISR/ modular systems, turbine technologies, and defense and rocket support services. The Unmanned Systems segment provides unmanned aerial systems, and unmanned ground and seaborne systems. It serves national security related agencies, the department of defense, intelligence agencies, and classified agencies, as well as international government agencies and domestic and international commercial customers. Kratos Defense & Security Solutions, Inc. was incorporated in 1994 and is headquartered in San Diego, California.
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