Northrop Grumman Corporation (NYSE: NOC) is one of 44 publicly-traded companies in the “Aerospace & Defense” industry, but how does it compare to its competitors? We will compare Northrop Grumman Corporation to related businesses based on the strength of its valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Valuation and Earnings

This table compares Northrop Grumman Corporation and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Northrop Grumman Corporation $25.19 billion $3.80 billion 21.08
Northrop Grumman Corporation Competitors $8.56 billion $1.20 billion 81.17

Northrop Grumman Corporation has higher revenue and earnings than its competitors. Northrop Grumman Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Northrop Grumman Corporation and its competitors, 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 2247 2404 90 2.38

Northrop Grumman Corporation currently has a consensus target price of $268.34, indicating a potential downside of 2.76%. As a group, “Aerospace & Defense” companies have a potential upside of 6.01%. Given Northrop Grumman Corporation’s competitors higher possible upside, analysts clearly believe Northrop Grumman Corporation has less favorable growth aspects than its competitors.

Profitability

This table compares Northrop Grumman Corporation and its competitors’ 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% 25.11% 4.01%

Dividends

Northrop Grumman Corporation pays an annual dividend of $4.00 per share and has a dividend yield of 1.4%. 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 & Volatility

Northrop Grumman Corporation has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Northrop Grumman Corporation’s competitors have a beta of 1.05, indicating that their average share price is 5% more volatile than the S&P 500.

Institutional & Insider Ownership

81.4% of Northrop Grumman Corporation shares are owned by institutional investors. Comparatively, 70.2% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 0.7% of Northrop Grumman Corporation shares are owned by company insiders. Comparatively, 7.4% of shares of all “Aerospace & Defense” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Northrop Grumman Corporation beats its competitors on 10 of the 15 factors compared.

About Northrop Grumman Corporation

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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