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HII vs KTOS
Which Stock Would AI Choose? Huntington Ingalls Industries (HII) vs. Kratos Defense & Security Solutions (KTOS) Stock Comparison
Key Takeaways
- Both HII and KTOS operate in the aerospace and defense sector, benefiting from sustained U.S. military spending, but HII focuses on shipbuilding while KTOS emphasizes unmanned systems and space technologies.
- KTOS shows stronger year-to-date performance at 18.26% compared to HII's 6.37%, driven by recent space contracts.
- HII trades at a more reasonable trailing P/E (price-to-earnings) ratio of 23.43 versus KTOS's 477.31, reflecting greater profitability and stability.
- Recent contracts include a $283 million frigate support deal for HII and a $446.8 million Space Force award for KTOS, bolstering backlogs.
- HII offers higher ROE (return on equity) at 12.42% and profit margins around 4.85%, while KTOS prioritizes growth with lower margins of 1.63%.
Introduction
In the competitive aerospace and defense sector, HII and KTOS represent distinct approaches to fulfilling U.S. military needs. HII, a leading shipbuilder, contrasts with KTOS's focus on innovative unmanned systems and space solutions. This stock comparison analyzes their recent market positioning, performance metrics, and growth drivers, aiding investors seeking exposure to defense spending trends and traders evaluating relative momentum in a sector buoyed by geopolitical tensions and budget increases.
HII Overview and Recent Performance
Huntington Ingalls Industries (HII) is the largest military shipbuilder in the United States, specializing in aircraft carriers, submarines, and amphibious warships for the Navy. With a market capitalization of approximately $14.2 billion and shares trading around $360, HII has delivered solid one-year returns of 61.48%. In recent market activity, the stock experienced modest pullbacks amid broader sector rotations, influenced by interest rate sensitivities and anticipation of fiscal year-end budget approvals. Key developments include a $283 million contract for frigate lead yard support and workforce expansion initiatives, reinforcing a robust backlog and supporting sentiment for steady execution in core shipbuilding programs. Profitability remains strong, with trailing twelve-month revenue at $12.48 billion and EPS (earnings per share) of $15.40.
KTOS Overview and Recent Performance
Kratos Defense & Security Solutions (KTOS) provides advanced engineering solutions, including unmanned aerial systems, satellite communications, and hypersonic technologies for defense applications. Trading near $62 with a $11.6 billion market cap, KTOS has outperformed with year-to-date gains of 18.26% and one-year returns of 77.64%. Recent weeks saw volatility following high-profile contract wins, such as a $446.8 million Space Force deal for ground systems and a $7 million counter-unmanned aerial system order, which have fueled optimism around growth in space and drone segments despite elevated valuations. Revenue reached $1.35 billion over the trailing twelve months, with upcoming Q1 earnings expected to highlight backlog expansion to $1.57 billion.
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Head-to-Head Comparison
HII and KTOS share sector exposure to rising defense budgets but differ in business models: HII’s capital-intensive shipbuilding offers predictable revenue from long-term contracts, while KTOS pursues agile growth in drones and space via smaller, innovative programs. Growth drivers favor KTOS with higher recent momentum and backlog acceleration, contrasted by HII’s superior margins (4.85% vs. 1.63%) and ROE (12.42% vs. 1.31%). Risk factors include KTOS’s lofty P/E and execution risks in emerging tech, versus HII’s higher debt/equity (58.76%). Market sentiment leans toward KTOS for upside potential amid space hype, while HII appeals for relative stability.
Tickeron AI Verdict
Tickeron’s AI currently favors KTOS due to its superior recent momentum, with 18%+ YTD gains and catalysts like multi-hundred-million-dollar space contracts positioning it for outperformance in high-growth defense niches. HII remains a strong contender for stability, but KTOS’s trend consistency and relative valuation expansion suggest higher probability of near-term upside in the current environment.
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. Disclaimers and Limitations
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 HII is a Hold and KTOS is a Hold.
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 undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
HII’s FA Score shows that 2 FA rating(s) are green whileKTOS’s FA Score has 1 green FA rating(s).
- HII’s FA Score: 2 green, 3 red.
- KTOS’s FA Score: 1 green, 4 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.
HII’s TA Score shows that 5 TA indicator(s) are bullish while KTOS’s TA Score has 3 bullish TA indicator(s).
- HII’s TA Score: 5 bullish, 3 bearish.
- KTOS’s TA Score: 3 bullish, 4 bearish.
Price Growth
HII (@Aerospace & Defense) experienced а +3.13% price change this week, while KTOS (@Aerospace & Defense) price change was -10.02% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was -2.33%. For the same industry, the average monthly price growth was -4.10%, and the average quarterly price growth was +48.21%.
Reported Earning Dates
HII is expected to report earnings on Jul 30, 2026.
KTOS is expected to report earnings on Jul 30, 2026.
Industries' Descriptions
@Aerospace & Defense (-2.33% 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.
| HII | KTOS | HII / KTOS | |
| Capitalization | 12.9B | 9.77B | 132% |
| EBITDA | 1.2B | 110M | 1,094% |
| Gain YTD | -3.788 | -31.379 | 12% |
| P/E Ratio | 21.19 | 306.41 | 7% |
| Revenue | 12.8B | 1.42B | 905% |
| Total Cash | 216M | 1.46B | 15% |
| Total Debt | 2.93B | 185M | 1,584% |
HII | KTOS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 18 Undervalued | 89 Overvalued | |
PROFIT vs RISK RATING 1..100 | 48 | 77 | |
SMR RATING 1..100 | 64 | 89 | |
PRICE GROWTH RATING 1..100 | 61 | 65 | |
P/E GROWTH RATING 1..100 | 24 | 33 | |
SEASONALITY SCORE 1..100 | 50 | 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.
HII's Valuation (18) in the Aerospace And Defense industry is significantly better than the same rating for KTOS (89). This means that HII’s stock grew significantly faster than KTOS’s over the last 12 months.
HII's Profit vs Risk Rating (48) in the Aerospace And Defense industry is in the same range as KTOS (77). This means that HII’s stock grew similarly to KTOS’s over the last 12 months.
HII's SMR Rating (64) in the Aerospace And Defense industry is in the same range as KTOS (89). This means that HII’s stock grew similarly to KTOS’s over the last 12 months.
HII's Price Growth Rating (61) in the Aerospace And Defense industry is in the same range as KTOS (65). This means that HII’s stock grew similarly to KTOS’s over the last 12 months.
HII's P/E Growth Rating (24) in the Aerospace And Defense industry is in the same range as KTOS (33). This means that HII’s stock grew similarly to KTOS’s over the last 12 months.
| HII | KTOS | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 65% | 4 days ago 72% |
| Stochastic ODDS (%) | 4 days ago 56% | 4 days ago 77% |
| Momentum ODDS (%) | 4 days ago 52% | 4 days ago 77% |
| MACD ODDS (%) | 4 days ago 69% | 4 days ago 74% |
| TrendWeek ODDS (%) | 4 days ago 61% | 4 days ago 72% |
| TrendMonth ODDS (%) | 4 days ago 55% | 4 days ago 76% |
| Advances ODDS (%) | 5 days ago 59% | N/A |
| Declines ODDS (%) | 12 days ago 55% | 14 days ago 73% |
| BollingerBands ODDS (%) | 4 days ago 49% | 4 days ago 81% |
| Aroon ODDS (%) | 4 days ago 53% | 4 days ago 72% |
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