MRCY vs. KTOS

Last updated Jun 4, 2026

MRCY (Mercury Systems, Inc.) and KTOS (Kratos Defense & Security Solutions, Inc.) are both stocks. Both operate in the Aerospace & Defense industry within the Industrials sector. Over the past 10 years, MRCY returned 17.98%/yr vs 30.31%/yr for KTOS. At a 0.32 correlation, their price movements are largely independent.

Performance

MRCY vs. KTOS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Mercury Systems, Inc. (MRCY) 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, MRCY achieves a 52.84% return, which is significantly higher than KTOS's -23.03% return. Over the past 10 years, MRCY has underperformed KTOS with an annualized return of 17.98%, while KTOS has yielded a comparatively higher 30.31% annualized return.

MRCY

• 1D: -1.13%
• 1M: 42.10%
• YTD: 52.84%
• 6M: 58.89%
• 1Y: 119.49%
• 3Y*: 39.59%
• 5Y*: 10.98%
• 10Y*: 17.98%

KTOS

• 1D: -7.65%
• 1M: -5.65%
• YTD: -23.03%
• 6M: -19.72%
• 1Y: 49.48%
• 3Y*: 61.51%
• 5Y*: 17.61%
• 10Y*: 30.31%

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

MRCY vs. KTOS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MRCY Mercury Systems, Inc.	52.84%	73.83%	14.85%	-18.26%	-18.74%	-37.47%	27.42%	46.14%	-7.91%	69.92%
KTOS Kratos Defense & Security Solutions, Inc.	-23.03%	187.76%	30.01%	96.61%	-46.80%	-29.27%	52.30%	27.82%	33.05%	43.11%

Correlation

The correlation between MRCY and KTOS is 0.63, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (5Y) Calculated over the trailing 5-year period	0.54
Correlation (10Y) Calculated over the trailing 10-year period	0.49
Correlation (All Time) Calculated using the full available price history since Nov 8, 1999	0.32

Over the past year, MRCY and KTOS have become more correlated (0.63) than their long-term average of 0.32, meaning their price movements have been converging.

Fundamentals

Market Cap MRCY : $6.63B KTOS : $10.48B
EPS MRCY : -$0.24 KTOS : $0.17
PS Ratio MRCY : 6.83 KTOS : 7.05
PB Ratio MRCY : 4.48 KTOS : 3.07
Total Revenue (TTM) MRCY : $966.95M KTOS : $1.42B
Gross Profit (TTM) MRCY : $277.35M KTOS : $259.40M
EBITDA (TTM) MRCY : -$12.94M KTOS : $78.30M

Return for Risk

MRCY vs. KTOS — Risk / Return Rank

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

MRCY

MRCY Risk / Return Rank: 86
MRCY Sharpe Ratio Rank: 89
MRCY Sortino Ratio Rank: 84
MRCY Omega Ratio Rank: 87
MRCY Calmar Ratio Rank: 86
MRCY Martin Ratio Rank: 86

KTOS

KTOS Risk / Return Rank: 60
KTOS Sharpe Ratio Rank: 63
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.

MRCY vs. KTOS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Mercury Systems, Inc. (MRCY) 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.

	MRCY	KTOS	Difference
Sharpe ratio Return per unit of total volatility	2.15	0.70	+1.45
Sortino ratio Return per unit of downside risk	2.69	1.39	+1.30
Omega ratio Gain probability vs. loss probability	1.39	1.17	+0.23
Calmar ratio Return relative to maximum drawdown	3.73	0.83	+2.91
Martin ratio Return relative to average drawdown	9.32	1.75	+7.58
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MRCY vs. KTOS - Sharpe Ratio Comparison

The current MRCY Sharpe Ratio is 2.15, which is higher than the KTOS Sharpe Ratio of 0.70. The chart below compares the historical Sharpe Ratios of MRCY 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

	MRCY	KTOS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.15	0.70	+1.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.24	0.34	-0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.41	0.60	-0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	-0.14	+0.34

Drawdowns

MRCY vs. KTOS - Drawdown Comparison

The maximum MRCY drawdown since its inception was -95.95%, roughly equal to the maximum KTOS drawdown of -99.81%. Use the drawdown chart below to compare losses from any high point for MRCY and KTOS.

Drawdown Indicators

	MRCY	KTOS	Difference
Max Drawdown Largest peak-to-trough decline	-95.95%	-99.81%	+3.86%
Max Drawdown (1Y) Largest decline over 1 year	-32.19%	-60.15%	+27.96%
Max Drawdown (3Y) Largest decline over 3 years	-39.07%	-60.15%	+21.08%
Max Drawdown (5Y) Largest decline over 5 years	-62.43%	-69.39%	+6.96%
Max Drawdown (10Y) Largest decline over 10 years	-71.73%	-72.74%	+1.01%
Current Drawdown Current decline from peak	-1.13%	-96.30%	+95.17%
Average Drawdown Average peak-to-trough decline	-53.80%	-95.94%	+42.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	12.87%	28.43%	-15.56%

Volatility

MRCY vs. KTOS - Volatility Comparison

The current volatility for Mercury Systems, Inc. (MRCY) is 16.48%, while Kratos Defense & Security Solutions, Inc. (KTOS) has a volatility of 22.95%. This indicates that MRCY experiences smaller price fluctuations and is considered to be less risky than KTOS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MRCY	KTOS	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.48%	22.95%	-6.47%
Volatility (6M) Calculated over the trailing 6-month period	42.71%	55.83%	-13.12%
Volatility (1Y) Calculated over the trailing 1-year period	55.79%	70.96%	-15.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	45.72%	51.97%	-6.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	43.86%	50.65%	-6.79%

Dividends

MRCY vs. KTOS - Dividend Comparison

Neither MRCY nor KTOS has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

MRCY vs. KTOS - Profitability Comparison

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

MRCY - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Mercury Systems, Inc. reported a gross profit of 69.05M and revenue of 235.76M. Therefore, the gross margin over that period was 29.3%.

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%.

MRCY - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Mercury Systems, Inc. reported an operating income of 5.23M and revenue of 235.76M, resulting in an operating margin of 2.2%.

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%.

MRCY - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Mercury Systems, Inc. reported a net income of -2.86M and revenue of 235.76M, resulting in a net margin of -1.2%.

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 MRCY and KTOS in my portfolio?

MRCY and KTOS have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MRCY or KTOS?

KTOS has higher volatility (22.95%) compared to MRCY (16.48%). In terms of maximum drawdown, MRCY dropped -95.95% vs KTOS's -99.81%.

Which has better risk-adjusted returns?

MRCY currently has the higher Sharpe Ratio (2.15 vs 0.70), 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.