Head-To-Head Contrast: CAE (CAE) & Kratos Defense & Security Solutions (KTOS)

CAE (NYSE: CAE) and Kratos Defense & Security Solutions (NASDAQ:KTOS) are both aerospace companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Institutional & Insider Ownership

How to Become a New Pot Stock Millionaire

52.1% of CAE shares are held by institutional investors. Comparatively, 74.8% of Kratos Defense & Security Solutions shares are held by institutional investors. 18.3% of CAE shares are held by insiders. Comparatively, 17.9% of Kratos Defense & Security Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

CAE has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Kratos Defense & Security Solutions has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.

Dividends

CAE pays an annual dividend of $0.29 per share and has a dividend yield of 1.5%. Kratos Defense & Security Solutions does not pay a dividend. CAE pays out 36.7% of its earnings in the form of a dividend. CAE has increased its dividend for 2 consecutive years.

Profitability

This table compares CAE and Kratos Defense & Security Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CAE 11.31% 13.03% 5.20%
Kratos Defense & Security Solutions -5.68% 0.73% 0.31%

Analyst Ratings

This is a summary of recent ratings and price targets for CAE and Kratos Defense & Security Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CAE 0 2 2 0 2.50
Kratos Defense & Security Solutions 0 4 5 0 2.56

CAE presently has a consensus target price of $22.00, suggesting a potential upside of 16.96%. Kratos Defense & Security Solutions has a consensus target price of $13.44, suggesting a potential upside of 26.95%. Given Kratos Defense & Security Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe Kratos Defense & Security Solutions is more favorable than CAE.

Earnings & Valuation

This table compares CAE 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
CAE $2.06 billion 2.45 $191.59 million $0.79 23.81
Kratos Defense & Security Solutions $751.90 million 1.46 -$42.70 million $0.04 264.75

CAE has higher revenue and earnings than Kratos Defense & Security Solutions. CAE 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

CAE beats Kratos Defense & Security Solutions on 10 of the 17 factors compared between the two stocks.

About CAE

CAE Inc. provides training for the civil aviation, defense and security, and healthcare markets. The Company designs and integrates training solutions. It operates through three segments: Civil Aviation Training Solutions, Defense and Security, and Healthcare. The Company provides training solutions for flight, cabin, maintenance and ground personnel in commercial, business and helicopter aviation, a range of flight simulation training devices, as well as ab initio pilot training and crew sourcing services. The Company is a training systems integrator for defense forces across the air, land and sea domains, and for government and civil security organizations responsible for public safety. The Company designs, manufactures and markets simulators, simulation center management solutions and courseware for training of medical and allied healthcare students and clinicians in educational institutions, hospitals and defense organizations across the world.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. provides mission critical products, solutions, and services in the United States. The company operates through three segments: Kratos Government Solutions, Unmanned Systems, and Public Safety & Security. The Kratos Government Solutions segment offers microwave electronic products, satellite communications, training systems, modular systems, and defense and rocket support services. The Unmanned Systems segment provides unmanned aerial systems, and unmanned ground and seaborne systems. The Public Safety & Security segment designs, engineers, deploys, operates, integrates, maintains, and operates security and surveillance solutions for homeland security, public safety, critical infrastructure, government, and commercial customers. The company 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 founded in 1994 and is headquartered in San Diego, California.

Receive News & Ratings for CAE Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CAE and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Capital One Financial Weighs in on Cousins Properties’ Q3 2018 Earnings
Capital One Financial Weighs in on Cousins Properties’ Q3 2018 Earnings
Royal Gold  Forecasted to Post Q3 2018 Earnings of $0.42 Per Share
Royal Gold Forecasted to Post Q3 2018 Earnings of $0.42 Per Share
Campbell Soup  Forecasted to Post Q3 2018 Earnings of $0.60 Per Share
Campbell Soup Forecasted to Post Q3 2018 Earnings of $0.60 Per Share
Infineon Technologies  PT Set at €28.00 by Goldman Sachs
Infineon Technologies PT Set at €28.00 by Goldman Sachs
Hauck & Aufhaeuser Reiterates €16.50 Price Target for Hamburger Hafen und Logistik
Hauck & Aufhaeuser Reiterates €16.50 Price Target for Hamburger Hafen und Logistik
Drägerwerk  Earns “Neutral” Rating from Deutsche Bank
Drägerwerk Earns “Neutral” Rating from Deutsche Bank


Leave a Reply

© 2006-2018 Ticker Report. Google+.