Kratos Defense & Security Solutions (NASDAQ:KTOS) and Stable Road Acquisition (NASDAQ:SRAC) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.
Valuation & Earnings
This table compares Kratos Defense & Security Solutions and Stable Road Acquisition’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kratos Defense & Security Solutions||$747.70 million||3.72||$79.60 million||$0.19||118.21|
|Stable Road Acquisition||N/A||N/A||-$42.99 million||N/A||N/A|
This is a breakdown of recent ratings for Kratos Defense & Security Solutions and Stable Road Acquisition, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kratos Defense & Security Solutions||0||4||4||0||2.50|
|Stable Road Acquisition||0||0||0||0||N/A|
Kratos Defense & Security Solutions currently has a consensus target price of $28.25, indicating a potential upside of 25.78%.
This table compares Kratos Defense & Security Solutions and Stable Road Acquisition’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kratos Defense & Security Solutions||10.34%||2.81%||1.65%|
|Stable Road Acquisition||N/A||-768.58%||-22.08%|
Institutional & Insider Ownership
85.1% of Kratos Defense & Security Solutions shares are held by institutional investors. Comparatively, 17.0% of Stable Road Acquisition shares are held by institutional investors. 1.8% of Kratos Defense & Security Solutions shares are held by insiders. Comparatively, 21.8% of Stable Road Acquisition 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.
Volatility & Risk
Kratos Defense & Security Solutions has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Stable Road Acquisition has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.
Kratos Defense & Security Solutions beats Stable Road Acquisition on 8 of the 9 factors compared between the two stocks.
About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. provides mission critical products, services and solutions for United States national security priorities. Its products include microwave electronic products, satellite communications, modular systems, and rocket support operating. The company was founded on December 19, 1994 and is headquartered in Round Rock, TX.
About Stable Road Acquisition
Stable Road Acquisition Corp. is a special purpose acquisition company formed by SRC-NI Holdings, LLC, an affiliate of Stable Road Capital, for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination.
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