AVEX vs KTOS: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of November 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: AVEX is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. AVEX and KTOS share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined AVEX and KTOS exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

AEVEX Corp. was founded in 2017 and runs two segments. Tactical Systems designs and builds attritable unmanned systems: the Phoenix Ghost loitering munition family (including the Disruptor and Dominator variants first revealed publicly when the Pentagon sent 121 units to Ukraine in April 2022), plus the Mako unmanned surface vessel shown at the Special Operations Forces trade show in May 2026, which the company rates at up to 50 knots. Global Solutions is the services half: airborne ISR, processing and exploitation of collected imagery, and in-theater manufacturing and sustainment close to the units using the hardware. Roughly ~78% of revenue comes from government customers, the company employs about ~650 people, and it says it has more than ~10,200 systems committed through the end of 2026.

Full AVEX guide

Kratos Defense & Security Solutions (KTOS) is a defense technology company that specializes in affordable, high-performance systems the U.S. military wants to buy in volume. Its two segments are Unmanned Systems, home to the XQ-58 Valkyrie collaborative combat aircraft and other tactical drones and target drones, and Kratos Government Solutions, which spans hypersonic systems (Erinyes, Dark Fury), solid rocket motors, turbine and jet engines, microwave electronics, C5ISR, space, training and cyber. The common thread is being the low-cost, fast-to-field alternative to legacy prime contractors, which lines up with Pentagon demand for attritable, mass-producible hardware.

Full KTOS guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• AVEX drivers: One-way attack drone procurement moving from experiment to program of record; Attritable economics fit the way the US now plans to fight.
• KTOS drivers: Valkyrie and collaborative combat aircraft; Hypersonics, rockets and engines.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. A useful test is which set of risks you could hold through a drawdown: Customer concentration is the dominant exposure: roughly ~78% of revenue comes from government buyers, so a continuing resolution, a program cancellation or a reprioritization inside the unmanned systems budget can move a full year of results. For KTOS, valuation remains the dominant risk even after the 2026 sell-off: at about 238x trailing and 36x forward earnings, the stock still prices in years of sustained growth, and the roughly 49% year-to-date decline shows how sharply it can derate when sentiment on defense and drone names turns.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick AVEX if you believe its drivers more; KTOS if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the AVEX and KTOS guides.

AVEX. AEVEX is profitable, which distinguishes it from most drone-adjacent listings, and at ~1.6x trailing sales and ~22x forward earnings it now trades well below the multiples of its April debut. The market is discounting the ~65% of 2026 revenue tied to Ukraine-related programs and the risk that 2027 does not grow as analysts expect. Third-quarter results, expected around November 12, 2026 (consensus ~$0.09 per share on ~$150 million of revenue), are the next read on bookings and the 2027 setup.

KTOS. As of October 2026, Kratos is growing revenue about 30 percent a year while earning only about 2 cents of net income per dollar of sales, so the trailing P/E is in the hundreds and price-to-sales is about 5 times, down from roughly 7 times in the spring after the stock fell about 49 percent. The forward P/E near 36x assumes EPS rises to about $1.11 in 2027. The mean analyst target of about $98 sits far above the current price, while new coverage from Macquarie in October came in at $70.

Headline figures (approximate, October 2026): AVEX shows revenue (ttm) ~$697 million through June 2026; Q2 roughly double the prior-year quarter, q2 2026 eps ~$0.19 vs ~$0.07 consensus, net income (ttm) ~$22.4 million, or ~$0.21 per share, margins (ttm) Gross ~25.4%, operating ~10.2%; KTOS shows revenue (q2 2026) ~$459M, up ~30% YoY, revenue (ttm) ~$1.52B, 2026 revenue (analyst consensus) ~$1.79B, net income (ttm) ~$31M (~2% margin).

AVEX and KTOS are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AVEX and KTOS exposure against your real portfolio. It is not an investment adviser.