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ESLT vs KTOS
Which Stock Would AI Choose? Elbit Systems (ESLT) vs. Kratos Defense & Security Solutions (KTOS) Stock Comparison
Key Takeaways
- ESLT is a diversified, Israel-based defense electronics firm with a record order backlog of roughly $28.1 billion, while KTOS is a U.S.-focused developer of unmanned systems, hypersonic technology, and space solutions with a much smaller backlog of about $1.57 billion.
- Both companies delivered double-digit revenue growth in 2025, with ESLT up roughly 16% and KTOS up roughly 18.5%.
- ESLT offers stronger established profitability and pays a dividend, while KTOS carries no long-term debt and trades at a higher growth-oriented valuation.
- Both stocks sharply outperformed the broader aerospace and defense sector over the past year, but with very different growth drivers and risk profiles.
- Relative performance and market positioning differ mainly on geographic exposure: ESLT leans on European and Middle Eastern demand, while KTOS depends on U.S. budget and program timing.
Introduction
Defense stocks have been among the market's strongest performers in recent months as global security spending rises. This stock comparison looks at two very different companies within that theme: Elbit Systems, a large Israeli defense electronics and munitions supplier, and Kratos Defense & Security Solutions, a faster-growing U.S. specialist in drones, hypersonic systems, and space infrastructure. Investors weighing established profitability and backlog visibility against higher-growth, higher-valuation momentum may find this comparison useful. The analysis below reviews recent performance, business models, and the observable factors shaping relative performance and market positioning for each name.
ESLT Overview and Recent Performance
Elbit Systems is a global defense technology company that develops airborne, land, and naval systems, including unmanned aircraft, electronic warfare, electro-optics, and munitions. Full-year 2025 results showed revenue rising about 16% to roughly $7.94 billion, with GAAP (Generally Accepted Accounting Principles) diluted earnings per share of $11.39 and a record backlog of approximately $28.1 billion, up $5.5 billion from the prior year. Approximately 72% of that backlog is attributable to international customers, reflecting strong European demand. Recent weeks have brought large contract announcements, including a $2.3 billion international award and a $1.6 billion European defense solutions contract, supporting a roughly 100% rise in the share price over the prior year. Sentiment has been underpinned by expanding defense budgets, although the company also cites geopolitical risks and capacity constraints tied to high demand.
KTOS Overview and Recent Performance
Kratos Defense & Security Solutions is a U.S.-based provider of affordable, production-ready military hardware and software, including the Valkyrie tactical jet drone, hypersonic and rocket propulsion systems, and satellite ground systems. Full-year 2025 revenue rose about 18.5% to roughly $1.35 billion, with organic growth of 16.6% and adjusted earnings per share of $0.55. The company reported a record backlog of approximately $1.57 billion and a bid-and-proposal pipeline of about $13.7 billion, while maintaining no long-term debt. Recent market activity has been volatile: the stock climbed roughly 200% over the prior year before pulling back following third-quarter results, as investors weighed strong revenue beats against thinner margins and heavy internal investment. Management has emphasized hypersonic and unmanned-system programs as key catalysts, alongside a planned acquisition of satellite communications hardware supplier Orbit Technologies.
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Head-to-Head Comparison
The two companies operate at different scales and stages of maturity. Elbit Systems is larger and more diversified, spanning munitions, avionics, and electronic warfare across multiple geographies, which supports a $28 billion backlog and consistent profitability. Kratos is smaller and more specialized, concentrating on unmanned aerial vehicles (UAVs), hypersonic systems, and space technology, which gives it higher growth potential but thinner margins and greater reliance on individual program wins. On profitability, ESLT clearly leads with full-year GAAP earnings of $11.39 per share versus KTOS's adjusted $0.55 per share. On growth and momentum, KTOS has expanded revenue at a faster rate and commands a higher valuation, while ESLT offers a dividend and steadier free cash flow. Risk profiles differ as well: ESLT is exposed to Middle East and European defense dynamics and capacity constraints, whereas KTOS is sensitive to U.S. federal budget timing, government shutdowns, and execution on a large but uncertain opportunity pipeline.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely lean toward Elbit Systems for its combination of trend consistency, earnings stability, and backlog visibility. ESLT has demonstrated stronger profitability, record free cash flow, and a large international backlog that supports multi-year revenue clarity, all of which tend to score well in algorithmic trend and stability models. Kratos, by contrast, offers superior growth momentum and a cleaner balance sheet, but its higher volatility, thinner margins, and dependence on program-specific catalysts make its trend profile less consistent. The AI verdict is therefore probabilistic rather than definitive: ESLT appears better positioned on stability and fundamentals, while KTOS may appeal to momentum-oriented strategies willing to accept greater near-term volatility.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ESLT is a Hold and KTOS is a Hold.
ESLT in upward trend: price may jump up because it broke its lower Bollinger Band on November 04, 2026
ESLT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 24 of 33 cases where ESLT's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 73%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The 10-day moving average for ESLT crossed bullishly above the 50-day moving average on October 23, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 67%.
Following a +7.43% 3-day Advance, the price is estimated to grow further. Considering data from situations where ESLT advanced for three days, in 240 of 346 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
Bearish Trend Analysis
The 10-day RSI Indicator for ESLT moved out of overbought territory on October 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In 20 of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at 47%.
The Momentum Indicator moved below the 0 level on November 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ESLT as a result. In 51 of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 54%.
The Moving Average Convergence Divergence Histogram (MACD) for ESLT turned negative on November 04, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 54 similar instances when the indicator turned negative. In 26 of the 54 cases the stock turned lower in the days that followed. This puts the odds of success at 48%.
ESLT moved below its 50-day moving average on November 04, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ESLT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 50%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 28 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. ESLT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 53 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 55 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 94 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.922) is normal, around the industry mean (5.045). P/E Ratio (47.576) is within average values for comparable stocks, (17.993). ESLT's Projected Growth (PEG Ratio) (11.650) is slightly higher than the industry average of (3.110). Dividend Yield (0.006) settles around the average of (0.058) among similar stocks. P/S Ratio (4.143) is also within normal values, averaging (18.367).
KTOS's RSI Oscillator ascending out of oversold territory
The RSI Oscillator for KTOS moved out of oversold territory on October 23, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 27 similar instances when the indicator left oversold territory. In 23 of the 27 cases the stock moved higher. This puts the odds of a move higher at 85%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for KTOS just turned positive on October 26, 2026. Looking at past instances where KTOS's MACD turned positive, the stock continued to rise in 40 of 47 cases over the following month. The odds of a continued upward trend are 85%.
Following a +6.81% 3-day Advance, the price is estimated to grow further. Considering data from situations where KTOS advanced for three days, in 242 of 302 cases, the price rose further within the following month. The odds of a continued upward trend are 80%.
KTOS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 41 of 61 cases where KTOS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 67%.
The Momentum Indicator moved below the 0 level on November 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on KTOS as a result. In 68 of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 77%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KTOS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 76%.
The Aroon Indicator for KTOS entered a downward trend on November 04, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 77 (best 1 - 100 worst), indicating slightly worse than average price growth. KTOS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 88 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KTOS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock worse than average.
The Tickeron SMR rating for this company is 89 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 91 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.829) is normal, around the industry mean (5.045). KTOS has a moderately high P/E Ratio (185.500) as compared to the industry average of (17.993). Projected Growth (PEG Ratio) (0.030) is also within normal values, averaging (3.110). Dividend Yield (0.000) settles around the average of (0.058) among similar stocks. P/S Ratio (5.599) is also within normal values, averaging (18.367).
The Tickeron PE Growth Rating for this company is 96 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
ESLT | KTOS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 34 | 9 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 94 Overvalued | 91 Overvalued | |
PROFIT vs RISK RATING 1..100 | 28 | 88 | |
SMR RATING 1..100 | 55 | 89 | |
PRICE GROWTH RATING 1..100 | 44 | 77 | |
P/E GROWTH RATING 1..100 | 53 | 96 | |
SEASONALITY SCORE 1..100 | n/a | n/a |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
KTOS's Valuation (91) in the Aerospace And Defense industry is in the same range as ESLT (94). This means that KTOS’s stock grew similarly to ESLT’s over the last 12 months.
ESLT's Profit vs Risk Rating (28) in the Aerospace And Defense industry is somewhat better than the same rating for KTOS (88). This means that ESLT’s stock grew somewhat faster than KTOS’s over the last 12 months.
ESLT's SMR Rating (55) in the Aerospace And Defense industry is somewhat better than the same rating for KTOS (89). This means that ESLT’s stock grew somewhat faster than KTOS’s over the last 12 months.
ESLT's Price Growth Rating (44) in the Aerospace And Defense industry is somewhat better than the same rating for KTOS (77). This means that ESLT’s stock grew somewhat faster than KTOS’s over the last 12 months.
ESLT's P/E Growth Rating (53) in the Aerospace And Defense industry is somewhat better than the same rating for KTOS (96). This means that ESLT’s stock grew somewhat faster than KTOS’s over the last 12 months.
| ESLT | KTOS | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 47% | 2 days ago 85% |
| Stochastic ODDS (%) | 2 days ago 66% | 2 days ago 67% |
| Momentum ODDS (%) | 2 days ago 54% | 2 days ago 77% |
| MACD ODDS (%) | 2 days ago 48% | 2 days ago 85% |
| TrendWeek ODDS (%) | 2 days ago 52% | 2 days ago 73% |
| TrendMonth ODDS (%) | 2 days ago 49% | 2 days ago 76% |
| Advances ODDS (%) | 10 days ago 69% | 10 days ago 80% |
| Declines ODDS (%) | 4 days ago 50% | 4 days ago 76% |
| BollingerBands ODDS (%) | 2 days ago 73% | 2 days ago 66% |
| Aroon ODDS (%) | N/A | 2 days ago 74% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ESLT’s FA Score shows that 1 FA rating(s) are green while KTOS’s FA Score has 0 green FA rating(s).
- ESLT’s FA Score: 1 green, 4 red.
- KTOS’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ESLT’s TA Score shows that 4 TA indicator(s) are bullish while KTOS’s TA Score has 4 bullish TA indicator(s).
- ESLT’s TA Score: 4 bullish, 5 bearish.
- KTOS’s TA Score: 4 bullish, 4 bearish.
Price Growth
ESLT (@Aerospace & Defense) experienced а -9.73% price change this week, while KTOS (@Aerospace & Defense) price change was -12.65% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was -12.53%. For the same industry, the average monthly price growth was -16.65%, and the average quarterly price growth was -24.23%.
Reported Earning Dates
ESLT is expected to report earnings on Nov 17, 2026.
KTOS is expected to report earnings on Feb 25, 2027.
Industries' Descriptions
@Aerospace & Defense (-12.53% weekly)Aerospace & Defense is one of largest industries in the U.S., mainly comprising the following areas: commercial airliners, military aircraft, missiles, space, and general aviation. Focused heavily on research & development, it is also one of the fastest growing industries. Military aircraft has the largest market share in the industry’s sales, followed by space systems, civil aircraft, and missiles. Aerospace exports, directly and indirectly, support more jobs than the export of any other commodity, according to a study by the U.S. Department of Commerce. Boeing Company, Lockheed Martin Corporation and General Electric Company are some of the most prominent players in this space.
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ESLT and
Correlation & Price change
A.I.dvisor indicates that over the last year, ESLT has been loosely correlated with DRS. These tickers have moved in lockstep 51% of the time. This A.I.-generated data suggests there is some statistical probability that if ESLT jumps, then DRS could also see price increases.
| Ticker / NAME | Correlation To ESLT | 1D Price Change % | ||
|---|---|---|---|---|
| ESLT | 100% | -7.03% | ||
| DRS - ESLT | 51% Loosely correlated | -8.59% | ||
| KTOS - ESLT | 49% Loosely correlated | -12.27% | ||
| MRCY - ESLT | 44% Loosely correlated | -10.66% | ||
| KRMN - ESLT | 42% Loosely correlated | -13.52% | ||
| VOYG - ESLT | 42% Loosely correlated | -7.05% | ||
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KTOS and
Correlation & Price change
A.I.dvisor indicates that over the last year, KTOS has been closely correlated with AVAV. These tickers have moved in lockstep 71% of the time. This A.I.-generated data suggests there is a high statistical probability that if KTOS jumps, then AVAV could also see price increases.
| Ticker / NAME | Correlation To KTOS | 1D Price Change % | ||
|---|---|---|---|---|
| KTOS | 100% | -12.27% | ||
| AVAV - KTOS | 71% Closely correlated | -8.34% | ||
| RCAT - KTOS | 65% Loosely correlated | -10.31% | ||
| MRCY - KTOS | 63% Loosely correlated | -10.66% | ||
| KRMN - KTOS | 61% Loosely correlated | -13.52% | ||
| DRS - KTOS | 60% Loosely correlated | -8.59% | ||
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