BBAI vs. KTOS

Last updated Jun 9, 2026

BBAI (BigBear.ai Holdings, Inc.) and KTOS (Kratos Defense & Security Solutions, Inc.) are both stocks. BBAI operates in Information Technology Services (Technology), while KTOS operates in Aerospace & Defense (Industrials). Over the past 3 years, BBAI returned 28.32%/yr vs 59.41%/yr for KTOS. At a 0.24 correlation, their price movements are largely independent.

Performance

BBAI vs. KTOS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BigBear.ai Holdings, Inc. (BBAI) and Kratos Defense & Security Solutions, Inc. (KTOS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BBAI achieves a -20.19% return, which is significantly higher than KTOS's -23.95% return.

BBAI

• 1D: 2.62%
• 1M: 3.11%
• YTD: -20.19%
• 6M: -34.30%
• 1Y: 11.95%
• 3Y*: 28.32%
• 5Y*: —
• 10Y*: —

KTOS

• 1D: -1.35%
• 1M: -0.28%
• YTD: -23.95%
• 6M: -25.06%
• 1Y: 42.65%
• 3Y*: 59.41%
• 5Y*: 16.85%
• 10Y*: 30.73%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BBAI vs. KTOS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
BBAI BigBear.ai Holdings, Inc.	-20.19%	21.35%	107.94%	217.65%	-88.10%	-35.09%
KTOS Kratos Defense & Security Solutions, Inc.	-23.95%	187.76%	30.01%	96.61%	-46.80%	-1.27%

Correlation

The correlation between BBAI and KTOS is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.45
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (All Time) Calculated using the full available price history since Dec 20, 2021	0.24

Over the past year, BBAI and KTOS have become more correlated (0.45) than their long-term average of 0.24, meaning their price movements have been converging.

Fundamentals

Market Cap BBAI : $20.39B KTOS : $10.36B
EPS BBAI : -$0.13 KTOS : $0.17
PS Ratio BBAI : 76.89 KTOS : 6.96
PB Ratio BBAI : 25.80 KTOS : 3.04
Total Revenue (TTM) BBAI : $127.35M KTOS : $1.42B
Gross Profit (TTM) BBAI : $32.81M KTOS : $259.40M
EBITDA (TTM) BBAI : -$230.18M KTOS : $78.30M

Return for Risk

BBAI vs. KTOS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BBAI

BBAI Risk / Return Rank: 49
BBAI Sharpe Ratio Rank: 46
BBAI Sortino Ratio Rank: 55
BBAI Omega Ratio Rank: 51
BBAI Calmar Ratio Rank: 47
BBAI Martin Ratio Rank: 46

KTOS

KTOS Risk / Return Rank: 60
KTOS Sharpe Ratio Rank: 62
KTOS Sortino Ratio Rank: 62
KTOS Omega Ratio Rank: 59
KTOS Calmar Ratio Rank: 58
KTOS Martin Ratio Rank: 57

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BBAI vs. KTOS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BigBear.ai Holdings, Inc. (BBAI) and Kratos Defense & Security Solutions, Inc. (KTOS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	BBAI	KTOS	Difference
Sharpe ratio: Return per unit of total volatility	0.12	0.60	-0.47
Sortino ratio: Return per unit of downside risk	1.00	1.28	-0.28
Omega ratio: Gain probability vs. loss probability	1.10	1.15	-0.05
Calmar ratio: Return relative to maximum drawdown	0.18	0.71	-0.53
Martin ratio: Return relative to average drawdown	0.31	1.47	-1.16
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BBAI vs. KTOS - Sharpe Ratio Comparison

The current BBAI Sharpe Ratio is 0.12, which is lower than the KTOS Sharpe Ratio of 0.60. The chart below compares the historical Sharpe Ratios of BBAI and KTOS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BBAI	KTOS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.12	0.60	-0.47
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.32	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.61	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.08	-0.14	+0.05

Drawdowns

BBAI vs. KTOS - Drawdown Comparison

The maximum BBAI drawdown since its inception was -95.01%, roughly equal to the maximum KTOS drawdown of -99.81%. Use the drawdown chart below to compare losses from any high point for BBAI and KTOS.

Drawdown Indicators

	BBAI	KTOS	Difference
Max Drawdown Largest peak-to-trough decline	-95.01%	-99.81%	+4.80%
Max Drawdown (1Y) Largest decline over 1 year	-65.88%	-60.15%	-5.73%
Max Drawdown (3Y) Largest decline over 3 years	-75.56%	-60.15%	-15.41%
Max Drawdown (5Y) Largest decline over 5 years	—	-69.39%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-72.74%	—
Current Drawdown Current decline from peak	-66.04%	-96.34%	+30.30%
Average Drawdown Average peak-to-trough decline	-70.87%	-95.94%	+25.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	38.69%	29.04%	+9.65%

Volatility

BBAI vs. KTOS - Volatility Comparison

BigBear.ai Holdings, Inc. (BBAI) and Kratos Defense & Security Solutions, Inc. (KTOS) have volatilities of 24.69% and 23.93%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BBAI	KTOS	Difference
Volatility (1M) Calculated over the trailing 1-month period	24.69%	23.93%	+0.76%
Volatility (6M) Calculated over the trailing 6-month period	56.30%	56.47%	-0.17%
Volatility (1Y) Calculated over the trailing 1-year period	97.07%	71.96%	+25.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	174.91%	52.22%	+122.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	174.91%	50.78%	+124.13%

Dividends

BBAI vs. KTOS - Dividend Comparison

Neither BBAI nor KTOS has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

Frequently Asked Questions

Can I hold both BBAI and KTOS in my portfolio?

BBAI and KTOS have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BBAI or KTOS?

BBAI has higher volatility (24.69%) compared to KTOS (23.93%). In terms of maximum drawdown, BBAI dropped -95.01% vs KTOS's -99.81%.

Which has better risk-adjusted returns?

KTOS currently has the higher Sharpe Ratio (0.60 vs 0.12), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.