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KTOS vs. DPRO: Which Drone Defense Stock Is the Better Buy Now?
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Key Takeaways
Kratos Defense and Draganfly compete in unmanned defense systems for military surveillance and operations.
DPRO shows stronger EPS growth forecasts and trades at a lower forward P/S than Kratos Defense.
Draganfly gains traction via U.S. Air Force deals and global orders for advanced UAV platforms.
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) and Draganfly (DPRO - Free Report) share a strong focus on unmanned systems and advanced defense technologies. Both companies develop platforms designed to reduce human involvement in high-risk environments, particularly through drones and autonomous systems.
They are closely aligned in their emphasis on tactical and military applications. Their unmanned systems support critical defense operations such as surveillance, reconnaissance, intelligence gathering, and battlefield monitoring, making them integral to modern military strategies. Both companies also contribute to systems that integrate with command-and-control networks, communication systems, and data-driven decision-making tools, enhancing operational efficiency and responsiveness.
Both operate within a strategically important sector that is experiencing rapid growth and increased investment. Their shared focus on unmanned defense solutions positions them as key contributors to the evolution of next-generation military capabilities.
Let's compare the stocks' fundamentals to determine which one is a better investment option at present.
Factors Acting in Favor of KTOS Stock
Kratos Defense is a primary provider of unmanned aerial target drone systems to the U.S. Air Force, Navy, Army, and several allied defense agencies, leading to multiple recent contracts and partnerships that are expanding its presence in the global UAS market. In March 2026, the company received an approximately $7 million contract for a counter-UAS System designed to detect, track, and classify threats, including low-profile unmanned aerial systems, cruise missiles and other aerial targets.
Beyond manufacturing unmanned aerial drone systems, Kratos Defense is expanding its product portfolio, particularly in hypersonics. The company currently holds orders for multiple Erinyes and DarkFury hypersonic vehicles for upcoming missions. This diversified portfolio resulted in a backlog of $1.57 billion at the end of the fourth quarter of 2025.
Factors Acting in Favor of DPRO Stock
Draganfly is gaining momentum from rising demand in the defense industry, as increasing participation in U.S. and allied military initiatives broadens its market reach and supports consistent, high-value revenue streams. Its advanced product portfolio, including long-endurance, heavy-payload drones and AI-enabled swarm capabilities, sets it apart in critical use cases like surveillance, demining and emergency response.
The company secured a contract with U.S. Air Force Special Operations Command units, in partnership with DelMar Aerospace, to deliver its Flex FPV drone platform along with specialized training, reinforcing Draganfly’s position in defense-focused UAV solutions. DPRO also secured a strategic international military order for its Commander 3XL drone systems, reinforcing global demand for its defense-grade UAV technology. The order marks continued expansion into international defense markets.
How Do Zacks Estimates Compare for KTOS & DPRO?
The Zacks Consensus Estimate for Kratos Defense’s 2026 and 2027 earnings per share (EPS) indicates an increase of 38.18% and 37.6%, respectively, year over year.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Draganfly’s EPS indicates year-over-year growth of 57% in 2026 and 37.79% in 2027.
Image Source: Zacks Investment Research
DPRO’s Valuation More Attractive Than KTOS
KTOS shares trade at a forward 12-month Price/Sales (P/S F12M) of 7.22X compared with DPRO’s 1.62X, making DPRO more attractive from a valuation standpoint.
Debt Position of KTOS & DPRO
Currently, both Kratos Defense and Draganfly have a total debt-to-capital ratio of zero.
The time-to-interest earned ratio for Kratos Defense at the end of fourth-quarter 2025 was negative, while that for Draganfly was 22.1. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
KTOS & DPRO’s Price Performance
In the past year, shares of Kratos Defense and Draganfly have risen 108% and 139.7%, respectively.
KTOS or DPRO: Which Is a Better Choice Now?
Kratos Defense is benefiting from its position as a leading supplier of unmanned aerial target drones to U.S. and allied forces, supported by a solid backlog, new contract wins, and an expanding global drone footprint. Draganfly is benefiting from rising defense demand, leveraging advanced drones and AI-driven capabilities to expand its role in military and critical operations. Recent U.S. Air Force and international defense contracts highlight its growing global presence and strengthening position in defense-focused UAV solutions.
Our choice at the moment is Draganfly, given its strong earnings growth, better price performance, debt position and more attractive valuation than Kratos Defense. DPRO holds a Zacks Rank #2 (Buy) and KTOS carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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KTOS vs. DPRO: Which Drone Defense Stock Is the Better Buy Now?
Key Takeaways
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) and Draganfly (DPRO - Free Report) share a strong focus on unmanned systems and advanced defense technologies. Both companies develop platforms designed to reduce human involvement in high-risk environments, particularly through drones and autonomous systems.
They are closely aligned in their emphasis on tactical and military applications. Their unmanned systems support critical defense operations such as surveillance, reconnaissance, intelligence gathering, and battlefield monitoring, making them integral to modern military strategies. Both companies also contribute to systems that integrate with command-and-control networks, communication systems, and data-driven decision-making tools, enhancing operational efficiency and responsiveness.
Both operate within a strategically important sector that is experiencing rapid growth and increased investment. Their shared focus on unmanned defense solutions positions them as key contributors to the evolution of next-generation military capabilities.
Let's compare the stocks' fundamentals to determine which one is a better investment option at present.
Factors Acting in Favor of KTOS Stock
Kratos Defense is a primary provider of unmanned aerial target drone systems to the U.S. Air Force, Navy, Army, and several allied defense agencies, leading to multiple recent contracts and partnerships that are expanding its presence in the global UAS market. In March 2026, the company received an approximately $7 million contract for a counter-UAS System designed to detect, track, and classify threats, including low-profile unmanned aerial systems, cruise missiles and other aerial targets.
Beyond manufacturing unmanned aerial drone systems, Kratos Defense is expanding its product portfolio, particularly in hypersonics. The company currently holds orders for multiple Erinyes and DarkFury hypersonic vehicles for upcoming missions. This diversified portfolio resulted in a backlog of $1.57 billion at the end of the fourth quarter of 2025.
Factors Acting in Favor of DPRO Stock
Draganfly is gaining momentum from rising demand in the defense industry, as increasing participation in U.S. and allied military initiatives broadens its market reach and supports consistent, high-value revenue streams. Its advanced product portfolio, including long-endurance, heavy-payload drones and AI-enabled swarm capabilities, sets it apart in critical use cases like surveillance, demining and emergency response.
The company secured a contract with U.S. Air Force Special Operations Command units, in partnership with DelMar Aerospace, to deliver its Flex FPV drone platform along with specialized training, reinforcing Draganfly’s position in defense-focused UAV solutions. DPRO also secured a strategic international military order for its Commander 3XL drone systems, reinforcing global demand for its defense-grade UAV technology. The order marks continued expansion into international defense markets.
How Do Zacks Estimates Compare for KTOS & DPRO?
The Zacks Consensus Estimate for Kratos Defense’s 2026 and 2027 earnings per share (EPS) indicates an increase of 38.18% and 37.6%, respectively, year over year.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Draganfly’s EPS indicates year-over-year growth of 57% in 2026 and 37.79% in 2027.
Image Source: Zacks Investment Research
DPRO’s Valuation More Attractive Than KTOS
KTOS shares trade at a forward 12-month Price/Sales (P/S F12M) of 7.22X compared with DPRO’s 1.62X, making DPRO more attractive from a valuation standpoint.
Debt Position of KTOS & DPRO
Currently, both Kratos Defense and Draganfly have a total debt-to-capital ratio of zero.
The time-to-interest earned ratio for Kratos Defense at the end of fourth-quarter 2025 was negative, while that for Draganfly was 22.1. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
KTOS & DPRO’s Price Performance
In the past year, shares of Kratos Defense and Draganfly have risen 108% and 139.7%, respectively.
KTOS or DPRO: Which Is a Better Choice Now?
Kratos Defense is benefiting from its position as a leading supplier of unmanned aerial target drones to U.S. and allied forces, supported by a solid backlog, new contract wins, and an expanding global drone footprint. Draganfly is benefiting from rising defense demand, leveraging advanced drones and AI-driven capabilities to expand its role in military and critical operations. Recent U.S. Air Force and international defense contracts highlight its growing global presence and strengthening position in defense-focused UAV solutions.
Our choice at the moment is Draganfly, given its strong earnings growth, better price performance, debt position and more attractive valuation than Kratos Defense. DPRO holds a Zacks Rank #2 (Buy) and KTOS carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.