The analysis notes that while Kratos Defense, a pure-play drone maker, saw its shares fall over 35% this year despite a 30.5% Q2 revenue growth, Northrop Grumman's shares dropped over 6%. Northrop Grumman reported Q2 revenue of $10.9 billion (up 5%) and has a record $105 billion backlog, with its annual revenue guidance raised to $43.75 billion-$44.25 billion. The report highlights Northrop Grumman's undervaluation compared to Kratos and peers, and its consistent dividend increases, making it a more favorable choice unless revenue growth is the sole concern.