Comparing Kratos Defense & Security Solutions (NASDAQ:KTOS) & Ballistic Recovery (OTCMKTS:BRSI)

Kratos Defense & Security Solutions (NASDAQ:KTOS) and Ballistic Recovery (OTCMKTS:BRSI) are both aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Analyst Ratings

This is a summary of current ratings and target prices for Kratos Defense & Security Solutions and Ballistic Recovery, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kratos Defense & Security Solutions	0	4	12	1	2.82
Ballistic Recovery	0	0	0	0	0.00

Kratos Defense & Security Solutions currently has a consensus price target of $77.36, indicating a potential downside of 15.16%. Given Ballistic Recovery’s higher possible upside, analysts plainly believe Ballistic Recovery is more favorable than Kratos Defense & Security Solutions.

Earnings & Valuation

This table compares Kratos Defense & Security Solutions and Ballistic Recovery”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kratos Defense & Security Solutions	$1.14 billion	13.54	$16.30 million	$0.10	911.80
Ballistic Recovery	N/A	N/A	N/A	N/A	N/A

Kratos Defense & Security Solutions has higher revenue and earnings than Ballistic Recovery.

Insider and Institutional Ownership

75.9% of Kratos Defense & Security Solutions shares are owned by institutional investors. 2.4% of Kratos Defense & Security Solutions shares are owned by company insiders. Comparatively, 45.3% of Ballistic Recovery shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Kratos Defense & Security Solutions and Ballistic Recovery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kratos Defense & Security Solutions	1.20%	3.10%	2.22%
Ballistic Recovery	N/A	N/A	N/A

Summary

Kratos Defense & Security Solutions beats Ballistic Recovery on 8 of the 10 factors compared between the two stocks.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc. engages in the provision of mission critical products, services and solutions for United States national security priorities. It operates through the Kratos Government Solutions (KGS) and Unmanned Systems (US) segments. The KGS segment consists of an aggregation of KGS operating segments, including microwave electronic products, space, satellite and cyber, training solutions. The US segment refers to the unmanned aerial, unmanned ground, unmanned seaborne and related command, control and communications system businesses. The company was founded on December 19, 1994, and is headquartered in Round Rock, TX.

About Ballistic Recovery

Ballistic Recovery Systems Inc. develops and commercializes parachute systems in the United States. The company operates in three segments: Aviation, Defense, and Space. The Aviation segment designs, tests, and produces whole-aircraft emergency recovery parachute systems for the general aviation and recreational aircraft industries. The Defense segment designs, tests, and produces personnel parachute systems, precision guided aerial delivery systems, and cargo and whole-aircraft emergency recovery parachutes used in unmanned aerial vehicles and training aircrafts. The Space segment designs, tests, and produces entry, descent, and landing systems for various space applications, as well as manned and un-manned, planetary, and terrestrial space applications. The company also provides safety apparel. Ballistic Recovery Systems Inc. was founded in 1980 and is based in South Saint Paul, Minnesota.