ELAN vs. KTOS

Last updated Jun 3, 2026

ELAN (Elanco Animal Health Incorporated) and KTOS (Kratos Defense & Security Solutions, Inc.) are both stocks. ELAN operates in Drug Manufacturers - Specialty & Generic (Healthcare), while KTOS operates in Aerospace & Defense (Industrials). Over the past 5 years, ELAN returned -7.56%/yr vs 19.81%/yr for KTOS. At a 0.27 correlation, their price movements are largely independent.

Performance

ELAN vs. KTOS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Elanco Animal Health Incorporated (ELAN) 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, ELAN achieves a 4.42% return, which is significantly higher than KTOS's -16.65% return.

ELAN

• 1D: -0.17%
• 1M: 4.98%
• YTD: 4.42%
• 6M: 5.07%
• 1Y: 76.08%
• 3Y*: 36.85%
• 5Y*: -7.56%
• 10Y*: —

KTOS

• 1D: -0.35%
• 1M: 1.97%
• YTD: -16.65%
• 6M: -10.84%
• 1Y: 66.32%
• 3Y*: 65.85%
• 5Y*: 19.81%
• 10Y*: 31.35%

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

ELAN vs. KTOS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
ELAN Elanco Animal Health Incorporated	4.42%	86.87%	-18.72%	21.93%	-56.94%	-7.47%	4.14%	-6.60%	-12.42%
KTOS Kratos Defense & Security Solutions, Inc.	-16.65%	187.76%	30.01%	96.61%	-46.80%	-29.27%	52.30%	27.82%	1.95%

Correlation

The correlation between ELAN and KTOS is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.17
Correlation (3Y) Calculated over the trailing 3-year period	0.18
Correlation (5Y) Calculated over the trailing 5-year period	0.27
Correlation (All Time) Calculated using the full available price history since Sep 21, 2018	0.27

The correlation between ELAN and KTOS shifts across timeframes, from 0.17 (1 year) to 0.27 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap ELAN : $11.96B KTOS : $11.35B
EPS ELAN : -$0.48 KTOS : $0.17
PS Ratio ELAN : 2.41 KTOS : 7.63
PB Ratio ELAN : 1.84 KTOS : 3.33
Total Revenue (TTM) ELAN : $4.89B KTOS : $1.42B
Gross Profit (TTM) ELAN : $2.42B KTOS : $259.40M
EBITDA (TTM) ELAN : $755.00M KTOS : $78.30M

Return for Risk

ELAN vs. KTOS — Risk / Return Rank

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

ELAN

ELAN Risk / Return Rank: 83
ELAN Sharpe Ratio Rank: 84
ELAN Sortino Ratio Rank: 83
ELAN Omega Ratio Rank: 82
ELAN Calmar Ratio Rank: 81
ELAN Martin Ratio Rank: 86

KTOS

KTOS Risk / Return Rank: 66
KTOS Sharpe Ratio Rank: 69
KTOS Sortino Ratio Rank: 67
KTOS Omega Ratio Rank: 64
KTOS Calmar Ratio Rank: 64
KTOS Martin Ratio Rank: 63

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.

ELAN vs. KTOS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Elanco Animal Health Incorporated (ELAN) 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.

	ELAN	KTOS	Difference
Sharpe ratio Return per unit of total volatility	1.78	0.95	+0.84
Sortino ratio Return per unit of downside risk	2.58	1.63	+0.95
Omega ratio Gain probability vs. loss probability	1.33	1.20	+0.14
Calmar ratio Return relative to maximum drawdown	2.89	1.19	+1.70
Martin ratio Return relative to average drawdown	9.56	2.53	+7.03
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ELAN vs. KTOS - Sharpe Ratio Comparison

The current ELAN Sharpe Ratio is 1.78, which is higher than the KTOS Sharpe Ratio of 0.95. The chart below compares the historical Sharpe Ratios of ELAN 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

	ELAN	KTOS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.78	0.95	+0.84
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.17	0.38	-0.55
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.62	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.12	-0.13	+0.01

Drawdowns

ELAN vs. KTOS - Drawdown Comparison

The maximum ELAN drawdown since its inception was -78.00%, smaller than the maximum KTOS drawdown of -99.81%. Use the drawdown chart below to compare losses from any high point for ELAN and KTOS.

Drawdown Indicators

	ELAN	KTOS	Difference
Max Drawdown Largest peak-to-trough decline	-78.00%	-99.81%	+21.81%
Max Drawdown (1Y) Largest decline over 1 year	-26.23%	-60.15%	+33.92%
Max Drawdown (3Y) Largest decline over 3 years	-56.10%	-60.15%	+4.05%
Max Drawdown (5Y) Largest decline over 5 years	-78.00%	-69.39%	-8.61%
Max Drawdown (10Y) Largest decline over 10 years	—	-72.74%	—
Current Drawdown Current decline from peak	-35.65%	-95.99%	+60.34%
Average Drawdown Average peak-to-trough decline	-39.82%	-95.94%	+56.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.93%	28.22%	-20.29%

Volatility

ELAN vs. KTOS - Volatility Comparison

Elanco Animal Health Incorporated (ELAN) and Kratos Defense & Security Solutions, Inc. (KTOS) have volatilities of 22.38% and 21.49%, 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

	ELAN	KTOS	Difference
Volatility (1M) Calculated over the trailing 1-month period	22.38%	21.49%	+0.89%
Volatility (6M) Calculated over the trailing 6-month period	32.54%	55.40%	-22.86%
Volatility (1Y) Calculated over the trailing 1-year period	42.96%	70.57%	-27.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	45.54%	51.86%	-6.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	44.19%	50.60%	-6.41%

Dividends

ELAN vs. KTOS - Dividend Comparison

Neither ELAN nor KTOS has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

ELAN vs. KTOS - Profitability Comparison

The chart below illustrates the profitability comparison between Elanco Animal Health Incorporated and Kratos Defense & Security Solutions, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

ELAN - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Elanco Animal Health Incorporated reported a gross profit of 785.00M and revenue of 1.37B. Therefore, the gross margin over that period was 57.3%.

KTOS - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Kratos Defense & Security Solutions, Inc. reported a gross profit of 34.70M and revenue of 371.00M. Therefore, the gross margin over that period was 9.4%.

ELAN - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Elanco Animal Health Incorporated reported an operating income of 307.00M and revenue of 1.37B, resulting in an operating margin of 22.4%.

KTOS - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Kratos Defense & Security Solutions, Inc. reported an operating income of 4.70M and revenue of 371.00M, resulting in an operating margin of 1.3%.

ELAN - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Elanco Animal Health Incorporated reported a net income of 57.00M and revenue of 1.37B, resulting in a net margin of 4.2%.

KTOS - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Kratos Defense & Security Solutions, Inc. reported a net income of 11.90M and revenue of 371.00M, resulting in a net margin of 3.2%.

Frequently Asked Questions

Can I hold both ELAN and KTOS in my portfolio?

ELAN and KTOS have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ELAN or KTOS?

ELAN has higher volatility (22.38%) compared to KTOS (21.49%). In terms of maximum drawdown, ELAN dropped -78.00% vs KTOS's -99.81%.

Which has better risk-adjusted returns?

ELAN currently has the higher Sharpe Ratio (1.78 vs 0.95), 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.