Northrop Grumman Corporation (NOC) and Its Competitors Critical Review
Northrop Grumman Corporation (NYSE: NOC) is one of 44 public companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its rivals? We will compare Northrop Grumman Corporation to related companies based on the strength of its earnings, dividends, institutional ownership, valuation, profitability, risk and analyst recommendations.
Insider & Institutional Ownership
81.5% of Northrop Grumman Corporation shares are held by institutional investors. Comparatively, 70.8% of shares of all “Aerospace & Defense” companies are held by institutional investors. 0.7% of Northrop Grumman Corporation shares are held by insiders. Comparatively, 7.4% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Northrop Grumman Corporation pays an annual dividend of $4.00 per share and has a dividend yield of 1.5%. Northrop Grumman Corporation pays out 30.6% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.6% and pay out 36.1% of their earnings in the form of a dividend. Northrop Grumman Corporation has raised its dividend for 9 consecutive years.
Risk and Volatility
Northrop Grumman Corporation has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Northrop Grumman Corporation’s rivals have a beta of 1.05, meaning that their average share price is 5% more volatile than the S&P 500.
Earnings & Valuation
This table compares Northrop Grumman Corporation and its rivals revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Northrop Grumman Corporation||$25.19 billion||$3.80 billion||20.40|
|Northrop Grumman Corporation Competitors||$8.56 billion||$1.20 billion||80.65|
Northrop Grumman Corporation has higher revenue and earnings than its rivals. Northrop Grumman Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This table compares Northrop Grumman Corporation and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Northrop Grumman Corporation||9.20%||39.22%||8.74%|
|Northrop Grumman Corporation Competitors||-2.01%||25.10%||4.00%|
This is a summary of recent ratings for Northrop Grumman Corporation and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Northrop Grumman Corporation||0||6||7||1||2.64|
|Northrop Grumman Corporation Competitors||552||2245||2402||89||2.38|
Northrop Grumman Corporation presently has a consensus price target of $268.34, indicating a potential upside of 0.49%. As a group, “Aerospace & Defense” companies have a potential upside of 7.28%. Given Northrop Grumman Corporation’s rivals higher probable upside, analysts plainly believe Northrop Grumman Corporation has less favorable growth aspects than its rivals.
Northrop Grumman Corporation beats its rivals on 10 of the 15 factors compared.
Northrop Grumman Corporation Company Profile
Northrop Grumman Corporation is a global security company. The Company provides products, systems and solutions in autonomous systems; cyber; command, control, communications and computers, intelligence, surveillance and reconnaissance (C4ISR); strike, and logistics and modernization. The Company’s segments include Aerospace Systems, Mission Systems and Technology Services. The Company’s Aerospace Systems segment is engaged in the design, development, integration and production of manned aircraft, autonomous systems, spacecraft, high-energy laser systems, microelectronics and other systems/subsystems. The Mission Systems segment offers mission solutions and multifunction systems for Department of Defense (DoD), intelligence community, international, federal civil and commercial customers. The Technology Services segment provides logistics solutions supporting the full life cycle of platforms and systems for global defense and federal-civil customers.
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