ISSC vs ATRO vs CW vs KTOS vs HEI

For growth investors, Innovative Solutions and Support, Inc.

(ISSC) is the stronger pick with 78. 6% revenue growth year-over-year, versus 8. 4% for Astronics Corporation (ATRO). Innovative Solutions and Support, Inc. (ISSC) offers the better valuation at 23. 8x trailing P/E (26. 6x forward), making it the more compelling value choice. Analysts rate Innovative Solutions and Support, Inc. (ISSC) a "Buy" — based on 2 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, Innovative Solutions and Support, Inc.

(ISSC) is the cheapest at 23. 8x versus Kratos Defense & Security Solutions, Inc. at 438. 5x. On forward P/E, Innovative Solutions and Support, Inc. is actually cheaper at 26. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Innovative Solutions and Support, Inc. wins at 0. 74x versus HEICO Corporation's 3. 14x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Curtiss-Wright Corporation (CW) delivered a total return of +449.

0%, compared to +105. 2% for HEICO Corporation (HEI). Over 10 years, the gap is even starker: KTOS returned +1232% versus ATRO's +198. 5%. 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), HEICO Corporation (HEI) is the lower-risk stock at 1.

04β versus Innovative Solutions and Support, Inc. 's 2. 34β — meaning ISSC is approximately 126% more volatile than HEI 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 3% for Astronics Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Innovative Solutions and Support, Inc.

(ISSC) is pulling ahead at 78. 6% versus 8. 4% for Astronics Corporation (ATRO). On earnings-per-share growth, the picture is similar: Astronics Corporation grew EPS 276. 1% year-over-year, compared to 18. 2% for Kratos Defense & Security Solutions, Inc.. Over a 3-year CAGR, ISSC leads at 44. 8% 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.

Innovative Solutions and Support, Inc.

(ISSC) is the more profitable company, earning 18. 5% net margin versus 1. 6% for Kratos Defense & Security Solutions, Inc. — meaning it keeps 18. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ISSC leads at 23. 8% versus 2. 1% for KTOS. At the gross margin level — before operating expenses — ISSC leads at 48. 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, Innovative Solutions and Support, Inc. (ISSC) is the more undervalued stock at a PEG of 0. 74x versus HEICO Corporation's 3. 14x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Innovative Solutions and Support, Inc. (ISSC) trades at 26. 6x forward P/E versus 73. 5x for Kratos Defense & Security Solutions, Inc. — 46. 9x 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, CW (0.

1% yield) pays a dividend. ISSC, ATRO, KTOS, HEI do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, HEICO Corporation (HEI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

04), +823. 0% 10Y return). Astronics Corporation (ATRO) carries a higher beta of 1. 74 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (HEI: +823. 0%, ATRO: +198. 5%), 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.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: ISSC is a small-cap high-growth stock; ATRO is a small-cap quality compounder stock; CW is a mid-cap quality compounder stock; KTOS is a mid-cap high-growth stock; HEI is a mid-cap high-growth stock. 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.