Better Drone Stock: Kratos Defense vs. Northrop Grumman
Kratos Defense and Security Solutions and Northrop Grumman are two great ways to play the trend toward increased military drone spending.
Overview
Kratos Defense and Security Solutions (NASDAQ: KTOS) and Northrop Grumman (NYSE: NOC) present two distinct options for capitalizing on growing demand for military drones. Kratos is a high-growth pure-play drone maker, while Northrop Grumman is a large military contractor with significant exposure to drones and other franchise programs.
Both defense stocks are down so far this year, though. Northrop Grumman's tight margins, partly due to fixed-price contracts, have helped push its shares down by more than 6% so far this year. Kratos, after a huge run-up early this year, has fallen back to Earth, with its shares down by more than 35%, as rising costs play a big role.
Details
Let's see which drone stock is better right now.
Source
Originally published at www.fool.com.