TDY vs HEI vs HII vs CW vs KTOS

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

(KTOS) is the stronger pick with 18. 5% revenue growth year-over-year, versus 7. 9% for Teledyne Technologies Incorporated (TDY). Huntington Ingalls Industries, Inc. (HII) offers the better valuation at 20. 4x trailing P/E (18. 2x forward), making it the more compelling value choice. Analysts rate Teledyne Technologies Incorporated (TDY) a "Buy" — based on 18 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, Huntington Ingalls Industries, Inc.

(HII) is the cheapest at 20. 4x versus Kratos Defense & Security Solutions, Inc. at 438. 5x. On forward P/E, Huntington Ingalls Industries, Inc. is actually cheaper at 18. 2x. 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 HEICO Corporation's 3. 14x.

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

0%, compared to +44. 7% for Teledyne Technologies Incorporated (TDY). Over 10 years, the gap is even starker: KTOS returned +1232% versus HII's +130. 7%. 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), Huntington Ingalls Industries, Inc.

(HII) is the lower-risk stock at 0. 69β versus Kratos Defense & Security Solutions, Inc. 's 1. 84β — meaning KTOS is approximately 168% more volatile than HII 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 62% for Huntington Ingalls Industries, Inc. — 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 7. 9% for Teledyne Technologies Incorporated (TDY). On earnings-per-share growth, the picture is similar: HEICO Corporation grew EPS 33. 5% year-over-year, compared to 9. 7% for Teledyne Technologies Incorporated. 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, Teledyne Technologies Incorporated (TDY) is the more undervalued stock at a PEG of 2. 14x versus HEICO Corporation's 3. 14x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Huntington Ingalls Industries, Inc. (HII) trades at 18. 2x forward P/E versus 73. 5x for Kratos Defense & Security Solutions, Inc. — 55. 3x 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, HII (1.

7% yield), CW (0. 1% yield) pay a dividend. TDY, HEI, KTOS do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Huntington Ingalls Industries, Inc.

(HII) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 69), 1. 7% yield, +130. 7% 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 (HII: +130. 7%, 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.

These companies operate in different sectors (TDY (Technology) and HEI (Industrials) and HII (Industrials) and CW (Industrials) and KTOS (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: TDY is a mid-cap quality compounder stock; HEI is a mid-cap high-growth stock; HII is a mid-cap quality compounder stock; CW is a mid-cap quality compounder stock; KTOS is a mid-cap high-growth stock. HII pays a dividend while TDY, HEI, 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.