Defense technology has become one of the market's most closely watched sectors as governments prioritize modernization, air defense, and autonomous systems. This stock comparison examines three publicly traded names at different points on that spectrum: DRS (Leonardo DRS), ESLT (Elbit Systems), and KTOS (Kratos Defense & Security Solutions). Each offers exposure to rising defense budgets but through contrasting business models and risk profiles. Traders seeking relative performance signals and investors evaluating market positioning may find this comparison useful for understanding how growth, backlog, valuation, and momentum currently differentiate these three contractors.
Leonardo DRS is a U.S.-based provider of advanced defense technology, specializing in sensing, network computing, force protection, and electric power and propulsion systems. The company serves U.S. national security customers and allies, with notable strength in tactical radars, infrared sensing, and naval propulsion.
Recent market activity has reflected sustained operational momentum. In its latest reported quarter, DRS grew revenue roughly 10% year over year and expanded its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin meaningfully, supported by strong program execution and favorable mix. Management raised full-year profit guidance, and the company has maintained a book-to-bill ratio of at least 1.0 for 18 consecutive quarters — a measure indicating it is booking orders faster than it recognizes revenue. Its funded backlog reached a record level in the recent period.
Sentiment has also been shaped by the announcement of a $450 million agreement to acquire Raft, a provider of open-architecture mission software for data fusion and artificial intelligence. The deal is designed to move DRS closer to integrated hardware-and-software solutions. While the shares have pulled back modestly from multiyear highs, the company's consistency of bookings and margin expansion has supported a generally constructive narrative.
Elbit Systems is an Israel-headquartered defense electronics and technology company with a broad portfolio spanning airborne, land, and naval systems, including unmanned platforms, electronic warfare, and rocket artillery. A defining feature of its business is geographic diversification: roughly 70% of its record backlog comes from customers outside Israel.
Recent performance has been supported by sustained international demand. In recent weeks, Elbit announced an approximately $235 million contract to supply EXTRA-MR precision-guided rockets and PULS rocket artillery systems to a European customer under a government-to-government agreement. The company also completed the acquisition of ISE, a Canada-based specialist in autonomous underwater vehicles, broadening its maritime autonomy offering. These developments reinforce a backlog-driven growth story, with revenue growth forecast in the low-to-mid teens and the order book providing multiyear visibility.
On valuation, Elbit trades at a premium earnings multiple, reflecting both its backlog quality and investor appetite for European rearmament exposure. The shares have advanced strongly over the trailing twelve months, though they have shown a mixed technical posture at times, trading below several shorter-term moving averages while remaining closer to 52-week highs than lows.
Kratos Defense & Security Solutions is a U.S.-based technology company focused on unmanned systems, hypersonics, rocket and missile propulsion, and space and satellite ground systems. Its growth narrative centers on the XQ-58A Valkyrie unmanned aircraft, hypersonic testing infrastructure, and turbojet engine production for drones and missiles.
Recent market activity has highlighted both the company's growth and its cost burden. In its latest quarter, Kratos grew revenue roughly 22% year over year, with organic growth in the mid-teens, and reported a strong consolidated book-to-bill ratio above 1.5, lifting backlog to roughly $2 billion. Unmanned Systems revenue rose sharply on Valkyrie-related activity, and management cited a projected rise in national security spending as a tailwind.
However, the company's strategy of investing ahead of demand — in facilities, inventory, and long-lead materials — has weighed on margins and free cash flow, and supply-chain and parts availability remain cited risks. The stock has experienced notable volatility in recent weeks, including sharp pullbacks after prior run-ups, reflecting investor sensitivity to execution risk and defense budget uncertainty even amid strong bookings.
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The three companies occupy different niches within defense technology. DRS emphasizes steady, margin-accretive growth built on sensing, radar, and propulsion, with disciplined capital deployment and a strong track record of converting bookings into backlog. ESLT offers scale and backlog depth, with a global footprint that reduces reliance on any single defense budget. KTOS is oriented toward disruptive, higher-growth programs — drones, hypersonics, and advanced propulsion — where the payoff is larger but tied to execution and sustained government funding.
On momentum and risk, the contrast is sharp. DRS and ESLT have demonstrated more consistent book-to-bill ratios and margin profiles, while KTOS pairs the fastest revenue growth with the heaviest investment and greatest cash-flow strain. Sector exposure also differs: DRS and KTOS are weighted toward U.S. programs, whereas ESLT leans on international and European demand. From a valuation standpoint, ESLT and KTOS both carry premium multiples that leave less room for disappointment, while DRS sits at a comparatively moderate premium relative to its peers.
In short, investors choosing among these names are effectively choosing between stability (DRS), global backlog breadth (ESLT), and growth optionality (KTOS).
Based on observable factors such as trend consistency, backlog quality, margin trajectory, and catalyst visibility, Tickeron's AI would most likely favor DRS among the three. The company combines the strongest recent combination of stable, above-1.0 book-to-bill activity, expanding margins, and a clearly defined growth catalyst in the Raft acquisition, while trading at a relatively less demanding valuation than ESLT and with lower execution risk than KTOS. ESLT's record backlog makes it a close second on visibility, while KTOS offers the highest growth potential but also the greatest volatility. This assessment is probabilistic rather than definitive and reflects current positioning rather than a long-term recommendation.
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DRS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 18 of 22 cases where DRS's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 82%.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where DRS's RSI Indicator exited the oversold zone, 8 of 12 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 67%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +1.29% 3-day Advance, the price is estimated to grow further. Considering data from situations where DRS advanced for three days, in 202 of 259 cases, the price rose further within the following month. The odds of a continued upward trend are 78%.
The Momentum Indicator moved below the 0 level on September 29, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DRS as a result. In 52 of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 64%.
The Moving Average Convergence Divergence Histogram (MACD) for DRS turned negative on October 20, 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 36 similar instances when the indicator turned negative. In 23 of the 36 cases the stock turned lower in the days that followed. This puts the odds of success at 64%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DRS 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 56%.
The Aroon Indicator for DRS entered a downward trend on October 22, 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.
The Tickeron Valuation Rating of 54 (best 1 - 100 worst) indicates that the company is fair valued 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 (3.266) is normal, around the industry mean (4.854). P/E Ratio (28.115) is within average values for comparable stocks, (16.403). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.564). Dividend Yield (0.010) settles around the average of (0.061) among similar stocks. P/S Ratio (2.636) is also within normal values, averaging (18.330).
The Tickeron SMR rating for this company is 65 (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 Price Growth Rating for this company is 76 (best 1 - 100 worst), indicating slightly worse than average price growth. DRS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 80 (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.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DRS’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.
ESLT saw its Momentum Indicator move above the 0 level on October 14, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 94 similar instances where the indicator turned positive. In 70 of the 94 cases, the stock moved higher in the following days. The odds of a move higher are at 74%.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where ESLT's RSI Oscillator exited the oversold zone, 8 of 13 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 62%.
The Moving Average Convergence Divergence (MACD) for ESLT just turned positive on October 15, 2026. Looking at past instances where ESLT's MACD turned positive, the stock continued to rise in 35 of 53 cases over the following month. The odds of a continued upward trend are 66%.
ESLT moved above its 50-day moving average on October 15, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.41% 3-day Advance, the price is estimated to grow further. Considering data from situations where ESLT advanced for three days, in 242 of 350 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for ESLT moved below the 200-day moving average on September 21, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an 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 49%.
ESLT broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is 26 (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 PE Growth Rating for this company is 40 (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 Price Growth Rating for this company is 48 (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 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 (7.898) is normal, around the industry mean (4.854). P/E Ratio (54.289) is within average values for comparable stocks, (16.403). ESLT's Projected Growth (PEG Ratio) (11.650) is slightly higher than the industry average of (2.564). Dividend Yield (0.005) settles around the average of (0.061) among similar stocks. P/S Ratio (4.143) is also within normal values, averaging (18.330).
KTOS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 30 of 37 cases where KTOS's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 81%.
The RSI Indicator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +0.89% 3-day Advance, the price is estimated to grow further. Considering data from situations where KTOS advanced for three days, in 243 of 303 cases, the price rose further within the following month. The odds of a continued upward trend are 80%.
The Momentum Indicator moved below the 0 level on September 25, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on KTOS as a result. In 67 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 76%.
The Moving Average Convergence Divergence Histogram (MACD) for KTOS turned negative on October 13, 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 48 similar instances when the indicator turned negative. In 36 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 75%.
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 75%.
The Aroon Indicator for KTOS entered a downward trend on October 22, 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.
The Tickeron Price Growth Rating for this company is 84 (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 92 (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 (2.096) is normal, around the industry mean (4.854). KTOS's P/E Ratio (212.611) is considerably higher than the industry average of (16.403). Projected Growth (PEG Ratio) (0.030) is also within normal values, averaging (2.564). Dividend Yield (0.000) settles around the average of (0.061) among similar stocks. P/S Ratio (5.599) is also within normal values, averaging (18.330).
The Tickeron PE Growth Rating for this company is 95 (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 | 22 | 57 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 94 Overvalued | 92 Overvalued | |
PROFIT vs RISK RATING 1..100 | 26 | 88 | |
SMR RATING 1..100 | 55 | 89 | |
PRICE GROWTH RATING 1..100 | 48 | 84 | |
P/E GROWTH RATING 1..100 | 40 | 95 | |
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 (92) 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 (26) 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 (48) in the Aerospace And Defense industry is somewhat better than the same rating for KTOS (84). This means that ESLT’s stock grew somewhat faster than KTOS’s over the last 12 months.
ESLT's P/E Growth Rating (40) in the Aerospace And Defense industry is somewhat better than the same rating for KTOS (95). This means that ESLT’s stock grew somewhat faster than KTOS’s over the last 12 months.
| DRS | ESLT | KTOS | |
|---|---|---|---|
| RSI ODDS (%) | 1 day ago 67% | 1 day ago 62% | 1 day ago 79% |
| Stochastic ODDS (%) | 1 day ago 76% | 1 day ago 59% | 1 day ago 72% |
| Momentum ODDS (%) | 1 day ago 64% | 1 day ago 74% | 1 day ago 76% |
| MACD ODDS (%) | 1 day ago 64% | 1 day ago 66% | 1 day ago 75% |
| TrendWeek ODDS (%) | 1 day ago 56% | 1 day ago 68% | 1 day ago 73% |
| TrendMonth ODDS (%) | 1 day ago 55% | 1 day ago 48% | 1 day ago 76% |
| Advances ODDS (%) | 15 days ago 78% | 5 days ago 69% | 22 days ago 80% |
| Declines ODDS (%) | 4 days ago 56% | 3 days ago 49% | 1 day ago 75% |
| BollingerBands ODDS (%) | 1 day ago 82% | 1 day ago 58% | 1 day ago 81% |
| Aroon ODDS (%) | 1 day ago 56% | N/A | 1 day ago 74% |
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).
DRS’s FA Score shows that 0 FA rating(s) are green while ESLT’s FA Score has 1 green FA rating(s), and KTOS’s FA Score reflects 0 green FA rating(s).
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.
DRS’s TA Score shows that 4 TA indicator(s) are bullish while ESLT’s TA Score has 5 bullish TA indicator(s), and KTOS’s TA Score reflects 4 bullish TA indicator(s).
DRS (@Aerospace & Defense) experienced а -3.30% price change this week, while ESLT (@Aerospace & Defense) price change was +0.22% , and KTOS (@Aerospace & Defense) price fluctuated -6.06% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was -3.31%. For the same industry, the average monthly price growth was -17.03%, and the average quarterly price growth was -18.12%.
DRS is expected to report earnings on Oct 29, 2026.
ESLT is expected to report earnings on Nov 17, 2026.
KTOS is expected to report earnings on Oct 29, 2026.
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.
A.I.dvisor indicates that over the last year, DRS has been loosely correlated with MRCY. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if DRS jumps, then MRCY could also see price increases.
| Ticker / NAME | Correlation To DRS | 1D Price Change % | ||
|---|---|---|---|---|
| DRS | 100% | +1.06% | ||
| MRCY - DRS | 62% Loosely correlated | +0.09% | ||
| KTOS - DRS | 60% Loosely correlated | -1.21% | ||
| LHX - DRS | 54% Loosely correlated | +2.70% | ||
| BWXT - DRS | 53% Loosely correlated | -5.78% | ||
| VVX - DRS | 53% Loosely correlated | +3.29% | ||
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A.I.dvisor indicates that over the last year, ESLT has been loosely correlated with DRS. These tickers have moved in lockstep 50% 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% | +0.07% | ||
| DRS - ESLT | 50% Loosely correlated | +1.06% | ||
| KTOS - ESLT | 46% Loosely correlated | -1.21% | ||
| KRMN - ESLT | 42% Loosely correlated | -1.96% | ||
| VOYG - ESLT | 42% Loosely correlated | -2.85% | ||
| NOC - ESLT | 42% Loosely correlated | +2.42% | ||
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| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| PZLV | 32.12 | 0.67 | +2.14% |
| Pzena U.S. Large Cap Value ETF (PZLV) | |||
| EMBD | 22.85 | 0.08 | +0.35% |
| Global X Emerging Markets Bond ETF (EMBD) | |||
| VGSH | 57.80 | 0.17 | +0.29% |
| Vanguard Short-Term Treasury ETF (VGSH) | |||
| AVIE | 83.05 | 0.24 | +0.29% |
| Avantis Inflation Focused Equity ETF (AVIE) | |||
| QQA | 54.36 | -1.45 | -2.60% |
| Invesco QQQ Income Advantage ETF (QQA) | |||