TAYD vs KTOS

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

(KTOS) is the stronger pick with 18. 5% revenue growth year-over-year, versus 3. 8% for Taylor Devices, Inc. (TAYD). Taylor Devices, Inc. (TAYD) offers the better valuation at 18. 1x trailing P/E (16. 6x 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, Taylor Devices, Inc.

(TAYD) is the cheapest at 18. 1x versus Kratos Defense & Security Solutions, Inc. at 438. 5x. On forward P/E, Taylor Devices, Inc. is actually cheaper at 16. 6x.

Over the past 5 years, Taylor Devices, Inc.

(TAYD) delivered a total return of +325. 0%, compared to +110. 3% for Kratos Defense & Security Solutions, Inc. (KTOS). Over 10 years, the gap is even starker: KTOS returned +1232% versus TAYD's +225. 2%. 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), Taylor Devices, Inc.

(TAYD) is the lower-risk stock at 0. 66β versus Kratos Defense & Security Solutions, Inc. 's 1. 84β — meaning KTOS is approximately 178% more volatile than TAYD relative to the S&P 500.

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

(KTOS) is pulling ahead at 18. 5% versus 3. 8% for Taylor Devices, Inc. (TAYD). On earnings-per-share growth, the picture is similar: Kratos Defense & Security Solutions, Inc. grew EPS 18. 2% year-over-year, compared to 11. 2% for Taylor Devices, Inc.. Over a 3-year CAGR, TAYD 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.

Taylor Devices, Inc.

(TAYD) is the more profitable company, earning 20. 3% net margin versus 1. 6% for Kratos Defense & Security Solutions, Inc. — meaning it keeps 20. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TAYD leads at 20. 8% versus 2. 1% for KTOS. At the gross margin level — before operating expenses — TAYD leads at 46. 4%, 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, Taylor Devices, Inc.

(TAYD) trades at 16. 6x forward P/E versus 73. 5x for Kratos Defense & Security Solutions, Inc. — 56. 9x cheaper on a one-year earnings basis.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Taylor Devices, Inc.

(TAYD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 66), +225. 2% 10Y return). Kratos Defense & Security Solutions, Inc. (KTOS) carries a higher beta of 1. 84 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TAYD: +225. 2%, KTOS: +1232%), 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: TAYD is a small-cap quality compounder stock; KTOS 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.