Which Is a Better Investment, BWX Technologies Inc or Kratos Defense & Security Solutions, Inc Stock?

By Grace Malone
September 12, 2026
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Sifting through countless of stocks in the Aerospace & Defense industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in BWX Technologies, Inc., Kratos Defense & Security Solutions or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how BWX Technologies, Inc., Kratos Defense & Security Solutions and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About BWX Technologies, Inc., Kratos Defense & Security Solutions and Inc.

BWX Technologies, Inc. manufactures and sells nuclear components in the United States, Canada, and internationally. The company operates through two segments, Government Operations and Commercial Operations. It manufactures precision naval nuclear components, reactors, and nuclear fuel; close-tolerance and high-quality equipment for nuclear applications; critical nuclear components, fuels and assemblies for government and limited other uses; down blend government stockpiles of uranium; and fabricate fuel-bearing precision components. The company also supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers; research reactor fuel elements for colleges, universities, and national laboratories; and components for defense applications. In addition, it manufactures commercial nuclear steam generators, nuclear fuel, fuel handling systems, pressure vessels, reactor components, heat exchangers, tooling delivery systems; and containers for the storage of nuclear fuel and other high-level nuclear waste. Further, the company supplies nuclear fuel, fuel handling systems, tooling delivery systems, nuclear-grade materials and precisely machined components; and manufactures medical radioisotopes, radiopharmaceuticals, and medical devices. Additionally, it provides specialized engineering services that include structural component design, 3-D thermal-hydraulic engineering analysis, weld and robotic process development, electrical and controls engineering and metallurgy and materials engineering; in-plant inspection, maintenance and modification services; and non-destructive examination and tooling/repair solutions. It also offers nuclear power plant lifecycle support and management services. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia.

Kratos Defense & Security Solutions, Inc., a technology company, provides technology, hardware, products, system, and software for the defense, national security, and commercial markets in the United States, other North America, the Asia Pacific, the Middle East, Europe, and Internationally. The company operates through Kratos Government Solutions and Unmanned Systems segments. It offers virtualized ground systems for satellites and space vehicles, including software for command and control, telemetry, and tracking and control; jet powered unmanned aerial drone systems and hypersonic vehicles and rocket systems; propulsion systems for drones, missiles, loitering munitions, supersonic systems, spacecraft and launch systems, command, control, communication, computing, combat, and intelligence surveillance and reconnaissance; and microwave electronic products for missile, radar, missile defense, space, and satellite; and counter unmanned aircraft systems, directed energy, communication and other systems, and virtual and augmented reality training systems for the warfighter. The company primarily serves national security-related agencies, the U.S. Department of Defense, intelligence and classified agencies, international government agencies, and domestic and international commercial customers. Kratos Defense & Security Solutions, Inc. was formerly known as Wireless Facilities, Inc. and changed its name to Kratos Defense & Security Solutions, Inc. in August 1999. Kratos Defense & Security Solutions, Inc. was incorporated in 1994 and is headquartered in San Diego, California.

Latest Aerospace & Defense and BWX Technologies, Inc., Kratos Defense & Security Solutions, Inc. Stock News

As of September 11, 2026, BWX Technologies, Inc. had a $13.8 billion market capitalization, compared to the Aerospace & Defense median of $4.3 million. BWX Technologies, Inc.’s stock is down 13.1% in 2026, down 6.3% in the previous five trading days and down 9.64% in the past year.

Currently, BWX Technologies, Inc.’s price-earnings ratio is 38.9. BWX Technologies, Inc.’s trailing 12-month revenue is $3.5 billion with a 10.1% net profit margin. Year-over-year quarterly sales growth most recently was 18.0%. Analysts expect adjusted earnings to reach $4.739 per share for the current fiscal year. BWX Technologies, Inc. currently has a 0.7% dividend yield.

As of September 11, 2026, Kratos Defense & Security Solutions, Inc. had a $8.8 billion market cap, putting it in the 76th percentile of all stocks. Kratos Defense & Security Solutions, Inc.’s stock is down 38.5% in 2026, down 2.9% in the previous five trading days and down 28.89% in the past year.

Currently, Kratos Defense & Security Solutions, Inc.’s price-earnings ratio is 276.3. Kratos Defense & Security Solutions, Inc.’s trailing 12-month revenue is $1.5 billion with a 2.0% net profit margin. Year-over-year quarterly sales growth most recently was 30.5%. Analysts expect adjusted earnings to reach $0.817 per share for the current fiscal year. Kratos Defense & Security Solutions, Inc. does not currently pay a dividend.

How We Compare BWX Technologies, Inc., Kratos Defense & Security Solutions and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at BWX Technologies, Inc., Kratos Defense & Security Solutions and Inc.’s stock grades to see how they measure up against one another.

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BWX Technologies, Inc., Kratos Defense & Security Solutions and Inc. Stock Value Grades

Company Ticker Value
BWX Technologies, Inc. BWXT F
Kratos Defense & Security Solutions, Inc. KTOS F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

BWX Technologies, Inc. has a Value Score of 12, which is Ultra Expensive. Kratos Defense & Security Solutions, Inc. has a Value Score of 6, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither BWX Technologies, Inc., Kratos Defense & Security Solutions or Inc. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if BWX Technologies, Inc., Kratos Defense & Security Solutions or Inc. is the better investment when it comes to value.

BWX Technologies, Inc., Kratos Defense & Security Solutions and Inc.’s Quality Grades

Company Ticker Quality
BWX Technologies, Inc. BWXT C
Kratos Defense & Security Solutions, Inc. KTOS D

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

BWX Technologies, Inc. has a Quality Score of 57, which is Average. Kratos Defense & Security Solutions, Inc. has a Quality Score of 29, which is Weak.

The Quality Stock Winner: No Clear Winner

Neither BWX Technologies, Inc., Kratos Defense & Security Solutions or Inc. has a high enough Quality Grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if BWX Technologies, Inc., Kratos Defense & Security Solutions or Inc. is the better investment when it comes to quality.

BWX Technologies, Inc., Kratos Defense & Security Solutions and Inc.’s Momentum Grades

Company Ticker Momentum
BWX Technologies, Inc. BWXT D
Kratos Defense & Security Solutions, Inc. KTOS D

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

BWX Technologies, Inc. has a Momentum Score of 26, which is Weak. Kratos Defense & Security Solutions, Inc. has a Momentum Score of 22, which is Weak.

The Momentum Stock Winner: No Clear Winner

Neither BWX Technologies, Inc., Kratos Defense & Security Solutions or Inc. has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if BWX Technologies, Inc., Kratos Defense & Security Solutions or Inc. is the better investment when it comes to momentum.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other BWX Technologies, Inc., Kratos Defense & Security Solutions and Inc. Grades

In addition to Value, Quality and Momentum, A+ Investor also provides grades for Growth and Estimate Revisions.

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Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether BWX Technologies, Inc., Kratos Defense & Security Solutions and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, BWX Technologies, Inc., Kratos Defense & Security Solutions or Inc. Stock?

Overall, BWX Technologies, Inc. stock has a Value Score of 12, Momentum Score of 26 and Quality Score of 57.

Kratos Defense & Security Solutions, Inc. stock has a Value Score of 6, Momentum Score of 22 and Quality Score of 29.

Comparing BWX Technologies, Inc., Kratos Defense & Security Solutions and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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