FEIM vs KTOS

For growth investors, Frequency Electronics, Inc.

(FEIM) is the stronger pick with 26. 3% revenue growth year-over-year, versus 18. 5% for Kratos Defense & Security Solutions, Inc. (KTOS). Frequency Electronics, Inc. (FEIM) offers the better valuation at 22. 3x trailing P/E (74. 1x forward), making it the more compelling value choice. Analysts rate Kratos Defense & Security Solutions, Inc. (KTOS) a "Buy" — based on 22 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Frequency Electronics, Inc.

(FEIM) is the cheapest at 22. 3x versus Kratos Defense & Security Solutions, Inc. at 438. 5x. On forward P/E, Kratos Defense & Security Solutions, Inc. is actually cheaper at 73. 5x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Frequency Electronics, Inc.

(FEIM) delivered a total return of +471. 5%, compared to +110. 3% for Kratos Defense & Security Solutions, Inc. (KTOS). Over 10 years, the gap is even starker: KTOS returned +1232% versus FEIM's +473. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Kratos Defense & Security Solutions, Inc.

(KTOS) is the lower-risk stock at 1. 84β versus Frequency Electronics, Inc. 's 2. 17β — meaning FEIM is approximately 18% more volatile than KTOS relative to the S&P 500. On balance sheet safety, Kratos Defense & Security Solutions, Inc. (KTOS) carries a lower debt/equity ratio of 9% versus 16% for Frequency Electronics, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Frequency Electronics, Inc.

(FEIM) is pulling ahead at 26. 3% versus 18. 5% for Kratos Defense & Security Solutions, Inc. (KTOS). On earnings-per-share growth, the picture is similar: Frequency Electronics, Inc. grew EPS 316. 9% year-over-year, compared to 18. 2% for Kratos Defense & Security Solutions, Inc.. Over a 3-year CAGR, KTOS leads at 14. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Frequency Electronics, Inc.

(FEIM) is the more profitable company, earning 34. 1% net margin versus 1. 6% for Kratos Defense & Security Solutions, Inc. — meaning it keeps 34. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FEIM leads at 16. 8% versus 2. 1% for KTOS. At the gross margin level — before operating expenses — FEIM leads at 43. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Kratos Defense & Security Solutions, Inc.

(KTOS) trades at 73. 5x forward P/E versus 74. 1x for Frequency Electronics, Inc. — 0. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for KTOS: 94. 0% to $110. 58.

In this comparison, FEIM (1.

8% yield) pays a dividend. KTOS does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Kratos Defense & Security Solutions, Inc.

(KTOS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1232% 10Y return). Frequency Electronics, Inc. (FEIM) carries a higher beta of 2. 17 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (KTOS: +1232%, FEIM: +473. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (FEIM (Technology) and KTOS (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

FEIM pays a dividend while KTOS does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.