AeroVironment vs Kratos Defense & Security Solutions
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KIRAβs take AI analyst
I put AeroVironment and Kratos Defense & Security Solutions side by side, using each oneβs latest annual report. Here is what stands out:
- AeroVironment is the larger business, with $2.0B of revenue in fiscal 2026 against $1.3B for Kratos Defense & Security Solutions.
- AeroVironment grew revenue faster (140.9%, against 18.5%).
- Kratos Defense & Security Solutions kept more of each dollar of sales as operating profit (1.9% operating margin, against β15.7%).
- AeroVironment turned more of its sales into free cash flow (β7.1% FCF margin, against β10.2%).
- Kratos Defense & Security Solutions earned a higher return on the capital invested in it (1.2%, against β9.1%).
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
AeroVironment
AVAV
4/10
Revenue growth5-year growthGross marginFCF margin
Kratos Defense & Security Solutions
KTOS
6/10
Operating marginNet marginReturn on capitalReturn on equityPiotroski F-scoreShare count change
Side by side
Best in the row
| Latest fiscal year | AVAV FY26 | KTOS FY25 |
|---|---|---|
| Size | ||
| Market cap | $6.2B | $7.4B |
| Revenue | $2.0B | $1.3B |
| Free cash flow | β$141M | β$137M |
| Net income | β$265M | $22.0M |
| Growth | ||
| Revenue growth | 140.9% | 18.5% |
| 5-year growth | 38.0% | 12.5% |
| Share count change | 74.2% | 9.5% |
| Profitability | ||
| Gross margin | 25.3% | 22.9% |
| Operating margin | β15.7% | 1.9% |
| Net margin | β13.4% | 1.6% |
| FCF margin | β7.1% | β10.2% |
| Return on capital | β9.1% | 1.2% |
| Return on equity | β10.0% | 1.3% |
| Balance sheet | ||
| Net debt | $115M | β$461M |
| Net debt / EBITDA | β | β6.4x |
| Dividends and buybacks | $0.0M | $0.0M |
| Valuation & quality | ||
| P/E | β | β |
| Piotroski F-score | 3 | 4 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.