FEIM vs KTOS vs LHX vs TDY

For growth investors, Frequency Electronics, Inc.

(FEIM) is the stronger pick with 26. 3% revenue growth year-over-year, versus 2. 5% for L3Harris Technologies, Inc. (LHX). 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, L3Harris Technologies, Inc. is actually cheaper at 26. 0x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Teledyne Technologies Incorporated wins at 2. 14x versus L3Harris Technologies, Inc. 's 2. 48x.

Over the past 5 years, Frequency Electronics, Inc.

(FEIM) delivered a total return of +471. 5%, compared to +44. 7% for Teledyne Technologies Incorporated (TDY). Over 10 years, the gap is even starker: KTOS returned +1232% versus LHX's +346. 1%. 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), L3Harris Technologies, Inc.

(LHX) is the lower-risk stock at 0. 39β versus Frequency Electronics, Inc. 's 2. 17β — meaning FEIM is approximately 460% more volatile than LHX 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 53% for L3Harris Technologies, 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 2. 5% for L3Harris Technologies, Inc. (LHX). On earnings-per-share growth, the picture is similar: Frequency Electronics, Inc. grew EPS 316. 9% year-over-year, compared to 8. 4% for L3Harris Technologies, 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: TDY leads at 18. 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Teledyne Technologies Incorporated (TDY) is the more undervalued stock at a PEG of 2. 14x versus L3Harris Technologies, Inc. 's 2. 48x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, L3Harris Technologies, Inc. (LHX) trades at 26. 0x forward P/E versus 74. 1x for Frequency Electronics, Inc. — 48. 1x 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), LHX (1. 6% yield) pay a dividend. KTOS, TDY do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, L3Harris Technologies, Inc.

(LHX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 39), 1. 6% yield, +346. 1% 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 (LHX: +346. 1%, 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) and LHX (Industrials) and TDY (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: FEIM is a small-cap high-growth stock; KTOS is a mid-cap high-growth stock; LHX is a mid-cap quality compounder stock; TDY is a mid-cap quality compounder stock. FEIM, LHX pay a dividend while KTOS, TDY do 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.