AAR (AIR) Competitors

AAR (NYSE:AIR) and Kratos Defense & Security Solutions (NASDAQ:KTOS) are both mid-cap aerospace companies, but which is the superior stock? We will compare the two businesses based on the strength of their community ranking, valuation, institutional ownership, earnings, media sentiment, risk, profitability, analyst recommendations and dividends.

Do analysts prefer AIR or KTOS?

AAR currently has a consensus price target of $80.20, suggesting a potential upside of 29.71%. Kratos Defense & Security Solutions has a consensus price target of $36.75, suggesting a potential upside of 2.83%. Given AAR's stronger consensus rating and higher probable upside, equities analysts plainly believe AAR is more favorable than Kratos Defense & Security Solutions.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AAR	0 Sell rating(s)	0 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	3.00
Kratos Defense & Security Solutions	0 Sell rating(s)	3 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.67

Does the media favor AIR or KTOS?

In the previous week, Kratos Defense & Security Solutions had 13 more articles in the media than AAR. MarketBeat recorded 19 mentions for Kratos Defense & Security Solutions and 6 mentions for AAR. AAR's average media sentiment score of 1.45 beat Kratos Defense & Security Solutions' score of 0.74 indicating that AAR is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
AAR	5 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Kratos Defense & Security Solutions	11 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Does the MarketBeat Community favor AIR or KTOS?

Kratos Defense & Security Solutions received 332 more outperform votes than AAR when rated by MarketBeat users. Likewise, 66.63% of users gave Kratos Defense & Security Solutions an outperform vote while only 60.50% of users gave AAR an outperform vote.

Company	Underperform	Outperform
AAR	Outperform Votes 337 60.50%	Underperform Votes 220 39.50%
Kratos Defense & Security Solutions	Outperform Votes 669 66.63%	Underperform Votes 335 33.37%

Is AIR or KTOS more profitable?

Kratos Defense & Security Solutions has a net margin of 1.31% compared to AAR's net margin of 0.41%. AAR's return on equity of 10.46% beat Kratos Defense & Security Solutions' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
AAR	0.41%	10.46%	4.77%
Kratos Defense & Security Solutions	1.31%	3.68%	2.48%

Which has better earnings and valuation, AIR or KTOS?

AAR has higher revenue and earnings than Kratos Defense & Security Solutions. AAR is trading at a lower price-to-earnings ratio than Kratos Defense & Security Solutions, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AAR	$2.68B	0.83	$46.30M	-$0.36	-171.75
Kratos Defense & Security Solutions	$1.16B	4.72	-$8.90M	$0.13	274.92

Which has more volatility & risk, AIR or KTOS?

AAR has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Kratos Defense & Security Solutions has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Do institutionals & insiders hold more shares of AIR or KTOS?

90.7% of AAR shares are owned by institutional investors. Comparatively, 75.9% of Kratos Defense & Security Solutions shares are owned by institutional investors. 4.1% of AAR shares are owned by insiders. Comparatively, 2.4% of Kratos Defense & Security Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

AAR beats Kratos Defense & Security Solutions on 10 of the 18 factors compared between the two stocks.