Kratos Defense & Security Solutions Outperforms Mercury Systems in Head-to-Head Comparison

Analysis shows Kratos has higher revenue, earnings, and institutional ownership than rival aerospace firm Mercury Systems.

Published on Feb. 16, 2026

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A comparison of Kratos Defense & Security Solutions (NASDAQ:KTOS) and Mercury Systems (NASDAQ:MRCY), two leading aerospace companies, reveals that Kratos outperforms Mercury Systems across several key metrics, including revenue, earnings per share, and institutional ownership. While Mercury Systems has a lower stock price volatility, Kratos demonstrates stronger overall financial performance and market positioning.

Why it matters

This analysis provides investors with valuable insights into the relative strengths and weaknesses of these two prominent aerospace firms, helping them make more informed decisions about where to allocate their capital in this dynamic industry.

The details

The key differences between the two companies include Kratos having higher revenue and earnings per share, as well as significantly greater institutional ownership at 75.9% compared to Mercury Systems' 96.0%. Kratos also has a higher beta of 1.09, indicating its stock price is more volatile than the broader market, while Mercury Systems has a lower beta of 0.75. Both companies have strong analyst recommendations, but Kratos outperforms Mercury Systems on 13 of the 14 factors compared.

  • The analysis was published on February 16, 2026.

The players

Kratos Defense & Security Solutions

A technology company that provides mission-critical products, services and solutions for U.S. national security priorities, operating through its Kratos Government Solutions and Unmanned Systems segments.

Mercury Systems

A technology company that manufactures and sells components, products, modules, and subsystems for aerospace and defense industries in the United States, Europe, and the Asia Pacific.

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What they’re saying

“This analysis provides investors with valuable insights into the relative strengths and weaknesses of these two prominent aerospace firms, helping them make more informed decisions about where to allocate their capital in this dynamic industry.”

— Lauren Steadman, Author (transcriptdaily.com)

The takeaway

Kratos Defense & Security Solutions has demonstrated stronger overall financial performance and market positioning compared to its rival Mercury Systems, making it an attractive investment option for those seeking exposure to the aerospace and defense sector.