ISSC vs GE vs RTX vs CW vs KTOS

For growth investors, Innovative Solutions and Support, Inc.

(ISSC) is the stronger pick with 78. 6% revenue growth year-over-year, versus 9. 7% for RTX Corporation (RTX). Innovative Solutions and Support, Inc. (ISSC) offers the better valuation at 24. 3x trailing P/E (27. 1x 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 24. 3x versus Kratos Defense & Security Solutions, Inc. at 445. 3x. On forward P/E, RTX Corporation is actually cheaper at 25. 4x — 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: Innovative Solutions and Support, Inc. wins at 0. 76x versus GE Aerospace's 3. 33x — 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 +467.

8%, compared to +121. 0% for RTX Corporation (RTX). Over 10 years, the gap is even starker: KTOS returned +1253% versus GE's +117. 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), RTX Corporation (RTX) is the lower-risk stock at 0.

50β versus Innovative Solutions and Support, Inc. 's 2. 36β — meaning ISSC is approximately 372% more volatile than RTX 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 108% for GE Aerospace — 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 9. 7% for RTX Corporation (RTX). On earnings-per-share growth, the picture is similar: Innovative Solutions and Support, Inc. grew EPS 120. 0% 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.

GE Aerospace (GE) is the more profitable company, earning 19.

0% net margin versus 1. 6% for Kratos Defense & Security Solutions, Inc. — meaning it keeps 19. 0% 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. 76x versus GE Aerospace's 3. 33x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, RTX Corporation (RTX) trades at 25. 4x forward P/E versus 76. 4x for Kratos Defense & Security Solutions, Inc. — 51. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for KTOS: 89. 3% to $109. 58.

In this comparison, RTX (1.

5% yield), GE (0. 5% yield), CW (0. 1% yield) pay a dividend. ISSC, KTOS do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, RTX Corporation (RTX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

50), 1. 5% yield, +233. 5% 10Y return). Innovative Solutions and Support, Inc. (ISSC) carries a higher beta of 2. 36 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (RTX: +233. 5%, ISSC: +712. 7%), 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; GE is a large-cap high-growth stock; RTX is a large-cap quality compounder stock; CW is a mid-cap quality compounder stock; KTOS is a mid-cap high-growth stock. RTX pays a dividend while ISSC, GE, CW, KTOS 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.