SXI vs CW vs KTOS vs HEI

For growth investors, Kratos Defense & Security Solutions, Inc.

(KTOS) is the stronger pick with 18. 5% revenue growth year-over-year, versus 9. 6% for Standex International Corporation (SXI). Curtiss-Wright Corporation (CW) offers the better valuation at 56. 2x trailing P/E (48. 0x forward), making it the more compelling value choice. Analysts rate Standex International Corporation (SXI) a "Buy" — based on 10 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, Curtiss-Wright Corporation (CW) is the cheapest at 56.

2x versus Kratos Defense & Security Solutions, Inc. at 438. 5x. On forward P/E, Standex International Corporation is actually cheaper at 30. 8x — 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: Curtiss-Wright Corporation wins at 2. 20x versus Standex International Corporation's 4. 40x.

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 SXI's +247. 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), HEICO Corporation (HEI) is the lower-risk stock at 1.

04β versus Kratos Defense & Security Solutions, Inc. 's 1. 84β — meaning KTOS is approximately 77% 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 82% for Standex International Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Kratos Defense & Security Solutions, Inc.

(KTOS) is pulling ahead at 18. 5% versus 9. 6% for Standex International Corporation (SXI). On earnings-per-share growth, the picture is similar: HEICO Corporation grew EPS 33. 5% year-over-year, compared to -24. 4% for Standex International Corporation. Over a 3-year CAGR, HEI leads at 26. 6% 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.

HEICO Corporation (HEI) is the more profitable company, earning 15.

4% net margin versus 1. 6% for Kratos Defense & Security Solutions, Inc. — meaning it keeps 15. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HEI leads at 22. 7% versus 2. 1% for KTOS. At the gross margin level — before operating expenses — HEI leads at 39. 8%, 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, Curtiss-Wright Corporation (CW) is the more undervalued stock at a PEG of 2. 20x versus Standex International Corporation's 4. 40x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Standex International Corporation (SXI) trades at 30. 8x forward P/E versus 73. 5x for Kratos Defense & Security Solutions, Inc. — 42. 7x 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, SXI (0.

5% yield), CW (0. 1% yield) pay a dividend. 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). Both have compounded well over 10 years (HEI: +823. 0%, SXI: +247. 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.

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: SXI 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.