Critical Comparison: Astrotech (ASTC) and Kratos Defense & Security Solutions (KTOS)

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Astrotech (NASDAQ:ASTC) and Kratos Defense & Security Solutions (NASDAQ:KTOS) are both small-cap aerospace companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Astrotech and Kratos Defense & Security Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Astrotech 0 0 1 0 3.00
Kratos Defense & Security Solutions 0 3 4 0 2.57

Kratos Defense & Security Solutions has a consensus target price of $14.43, suggesting a potential downside of 7.15%. Given Kratos Defense & Security Solutions’ higher probable upside, analysts clearly believe Kratos Defense & Security Solutions is more favorable than Astrotech.

Profitability

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

Net Margins Return on Equity Return on Assets
Astrotech N/A -125.29% -110.28%
Kratos Defense & Security Solutions -4.64% 3.99% 2.01%

Valuation & Earnings

This table compares Astrotech and Kratos Defense & Security Solutions’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Astrotech $90,000.00 158.85 -$13.25 million N/A N/A
Kratos Defense & Security Solutions $751.90 million 2.14 -$42.70 million $0.04 388.50

Astrotech has higher earnings, but lower revenue than Kratos Defense & Security Solutions.

Institutional & Insider Ownership

8.1% of Astrotech shares are held by institutional investors. Comparatively, 90.8% of Kratos Defense & Security Solutions shares are held by institutional investors. 30.9% of Astrotech shares are held by insiders. Comparatively, 15.6% of Kratos Defense & Security Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Astrotech has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Kratos Defense & Security Solutions has a beta of 2.34, meaning that its share price is 134% more volatile than the S&P 500.

Summary

Kratos Defense & Security Solutions beats Astrotech on 7 of the 12 factors compared between the two stocks.

Astrotech Company Profile

Astrotech Corporation operates as a science and technology development and commercialization company in the United States. It operates through two segments, Astro Scientific and Astral. The Astro Scientific segment develops, manufactures, and sells chemical analyzers for use in the airport security, military, breath analysis markets, including MMS-1000, a small and low-power desktop analyzer designed for the laboratory market; and OEM-1000, an original equipment manufacturer component that drives the MMS-1000. This segment also develops vaccines and other therapeutics. The Astral segment offers Astral Black ICE, a system targeted mainly towards the black-and-white feature film and television series digitization and restoration markets; Astral Color ICE, a standalone AI software solution that integrates into film scanners to enable color image correction and enhancement; and Astral HDR ICE, high dynamic range solution that upgrades digital and traditional films to the HDR10 standard. The company was formerly known as SPACEHAB, Inc. and changed its name to Astrotech Corporation in 2009. Astrotech Corporation was founded in 1984 is headquartered in Austin, Texas.

Kratos Defense & Security Solutions Company Profile

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.

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