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Kratos Defense vs. Curtiss-Wright: Which Defense Play Has More Upside?
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Key Takeaways
Curtiss-Wright is benefiting from submarine programs and rising commercial aerospace demand.
CW posted 20.7% Naval & Power sales growth and 12.3% Aerospace & Industrial growth in Q1.
KTOS is expanding in unmanned systems and hypersonics through new defense contracts and orders.
With geopolitical tensions and national security concerns continuing to escalate worldwide, defense spending is increasing globally, putting companies such as Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) and Curtiss-Wright (CW - Free Report) in the spotlight. Both companies maintain strong exposure to the U.S. defense market and generate a substantial share of their business from government and military-related programs.
The two companies are expected to benefit from ongoing growth in U.S. and allied military expenditures, especially as defense agencies prioritize modernization initiatives and next-generation technologies.
Kratos Defense is leveraging demand for unmanned aerial systems, missile defense, and space-focused capabilities, while Curtiss-Wright continues to capitalize on its portfolio of specialized components, electronic systems, and engineered technologies used across defense and aerospace applications. Their strategically important offerings position both companies to capture long-term opportunities tied to evolving military requirements and advanced defense infrastructure.
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 is the primary unmanned aerial target drone system provider for the U.S. Air Force, Navy, Army and several allied defense agencies, which has led 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 systems.
Apart from manufacturing unmanned aerial drone systems, Kratos Defense focuses on expanding its product portfolio with other products, especially in hypersonics. The company currently holds orders for multiple Erinyes and DarkFury hypersonic vehicles for upcoming and anticipated hypersonic missions.
Factors Acting in Favor of CW Stock
Increased demand for submarine programs, backed by solid budget funding provided by the U.S. administration, has been benefiting Curtiss-Wright, which offers products that support nuclear propulsion systems on naval vessels. During the first quarter of 2026, sales in its Naval & Power segment increased 20.7% year over year, with higher revenues supporting next-generation submarine development serving as a key growth catalyst.
Steadily improving global air traffic over the past few quarters has proved beneficial for Curtiss-Wright, which supplies critical components and systems for both commercial and defense aerospace markets. As airlines and aircraft manufacturers ramp up production and maintenance activities, demand for Curtiss-Wright’s engineered products, such as flight control actuators, sensors and valves, is rising. Evidently, sales from its Aerospace & Industrial segment grew 12.3% year over year in the first quarter of 2026, partially driven by higher revenues from the commercial aerospace market, on account of increased demand and higher OEM sales of sensor products and surface treatment services on narrowbody and widebody jets.
How Do Zacks Estimates Compare for KTOS & CW?
The Zacks Consensus Estimate for Kratos Defense’s 2026 earnings per share (EPS) indicates an increase of 32.73% year over year.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Curtiss-Wright’s 2026 EPS indicates an increase of 14.59% year over year.
Image Source: Zacks Investment Research
Valuation for KTOS & CW
KTOS shares trade at a forward 12-month Price/Sales (P/S F12M) of 5.64X compared with CW’s 6.97X.
KTOS & CW’s Return on Equity (ROE)
ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. Kratos Defense’s current ROE is 4.3% compared with Curtiss-Wright’s 20%.
KTOS & CW’s Price Performance
In the past six months, shares of Curtiss-Wright have risen 29.9%, while those of Kratos Defense have declined 25.9%, compared to the industry’s growth of 15.9%.
Image Source: Zacks Investment Research
KTOS or CW: Which Is a Better Choice Now?
Kratos Defense continues to strengthen its position in the unmanned aerial systems market through new defense contracts and partnerships with U.S. and allied military agencies. The company is also expanding beyond drone systems by growing its hypersonics portfolio, supported by increasing demand for advanced mission technologies. Curtiss-Wright is benefiting from strong demand tied to submarine modernization programs and rising naval defense investments, which continue to support growth across its defense-related operations. The company is also seeing increased momentum in commercial aerospace as higher aircraft production and maintenance activity drive demand for its specialized aerospace components and systems.
Our current preference is Curtiss-Wright, given its current price performance and strong ROE than Kratos Defense. CW has 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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Kratos Defense vs. Curtiss-Wright: Which Defense Play Has More Upside?
Key Takeaways
With geopolitical tensions and national security concerns continuing to escalate worldwide, defense spending is increasing globally, putting companies such as Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) and Curtiss-Wright (CW - Free Report) in the spotlight. Both companies maintain strong exposure to the U.S. defense market and generate a substantial share of their business from government and military-related programs.
The two companies are expected to benefit from ongoing growth in U.S. and allied military expenditures, especially as defense agencies prioritize modernization initiatives and next-generation technologies.
Kratos Defense is leveraging demand for unmanned aerial systems, missile defense, and space-focused capabilities, while Curtiss-Wright continues to capitalize on its portfolio of specialized components, electronic systems, and engineered technologies used across defense and aerospace applications. Their strategically important offerings position both companies to capture long-term opportunities tied to evolving military requirements and advanced defense infrastructure.
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 is the primary unmanned aerial target drone system provider for the U.S. Air Force, Navy, Army and several allied defense agencies, which has led 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 systems.
Apart from manufacturing unmanned aerial drone systems, Kratos Defense focuses on expanding its product portfolio with other products, especially in hypersonics. The company currently holds orders for multiple Erinyes and DarkFury hypersonic vehicles for upcoming and anticipated hypersonic missions.
Factors Acting in Favor of CW Stock
Increased demand for submarine programs, backed by solid budget funding provided by the U.S. administration, has been benefiting Curtiss-Wright, which offers products that support nuclear propulsion systems on naval vessels. During the first quarter of 2026, sales in its Naval & Power segment increased 20.7% year over year, with higher revenues supporting next-generation submarine development serving as a key growth catalyst.
Steadily improving global air traffic over the past few quarters has proved beneficial for Curtiss-Wright, which supplies critical components and systems for both commercial and defense aerospace markets. As airlines and aircraft manufacturers ramp up production and maintenance activities, demand for Curtiss-Wright’s engineered products, such as flight control actuators, sensors and valves, is rising. Evidently, sales from its Aerospace & Industrial segment grew 12.3% year over year in the first quarter of 2026, partially driven by higher revenues from the commercial aerospace market, on account of increased demand and higher OEM sales of sensor products and surface treatment services on narrowbody and widebody jets.
How Do Zacks Estimates Compare for KTOS & CW?
The Zacks Consensus Estimate for Kratos Defense’s 2026 earnings per share (EPS) indicates an increase of 32.73% year over year.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Curtiss-Wright’s 2026 EPS indicates an increase of 14.59% year over year.
Image Source: Zacks Investment Research
Valuation for KTOS & CW
KTOS shares trade at a forward 12-month Price/Sales (P/S F12M) of 5.64X compared with CW’s 6.97X.
KTOS & CW’s Return on Equity (ROE)
ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. Kratos Defense’s current ROE is 4.3% compared with Curtiss-Wright’s 20%.
KTOS & CW’s Price Performance
In the past six months, shares of Curtiss-Wright have risen 29.9%, while those of Kratos Defense have declined 25.9%, compared to the industry’s growth of 15.9%.
Image Source: Zacks Investment Research
KTOS or CW: Which Is a Better Choice Now?
Kratos Defense continues to strengthen its position in the unmanned aerial systems market through new defense contracts and partnerships with U.S. and allied military agencies. The company is also expanding beyond drone systems by growing its hypersonics portfolio, supported by increasing demand for advanced mission technologies. Curtiss-Wright is benefiting from strong demand tied to submarine modernization programs and rising naval defense investments, which continue to support growth across its defense-related operations. The company is also seeing increased momentum in commercial aerospace as higher aircraft production and maintenance activity drive demand for its specialized aerospace components and systems.
Our current preference is Curtiss-Wright, given its current price performance and strong ROE than Kratos Defense. CW has 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.