The Boeing Company (BA) vs Northrop Grumman Corporation (NOC)

The Boeing Company and Northrop Grumman Corporation are both Aerospace & Defense companies. The Boeing Company is the larger, with a market value of $136.7B against $74.6B — 1.8× the size. Northrop Grumman Corporation trades at the lower P/E: 16.5× against 17.9×. The Boeing Company grew revenue faster over the last twelve months: 17.5% against 6.51%. Northrop Grumman Corporation has the higher net margin (10.4% vs 7.70%) and the lower return on invested capital (9.84% vs 19.2%). Across the 22 metrics below, Northrop Grumman Corporation leads on 15 and The Boeing Company on 7.

Valuation

Metric BA NOC Aerospace & Defense median
P/E 17.91 16.51 29.42
P/S 1.45 1.71 3.05
P/B 20.93 3.99 2.91
Price to free cash flow 1,306.75 17.74 29.52
EV/EBITDA 13.51 13.86 17.23
EV/Sales 1.71 1.95 3.25
Earnings yield 5.58% 6.06% 0.95%
Free cash flow yield 0.08% 5.64% 0.00%

Profitability

Metric BA NOC Aerospace & Defense median
Gross margin 9.42% 20.02% 26.41%
Operating margin 10.26% 10.61% 3.69%
Net margin 7.70% 10.37% 2.74%
Free cash flow margin 0.12% 9.64% 0.73%
Return on equity (858.49%) 26.07% 5.39%
Return on assets 4.56% 8.88% 2.18%
Return on invested capital 19.15% 9.84% 0.64%

Growth

Metric BA NOC Aerospace & Defense median
Revenue growth (TTM) 17.53% 6.51% 18.03%
EPS growth (last fiscal year) 113.51% 2.61% 24.80%
Revenue growth, 5-year CAGR 9.00% 2.66% 9.73%
Net income growth, 5-year CAGR 0.00% 5.57% 0.00%

Health

Metric BA NOC Aerospace & Defense median
Debt to equity 7.00 0.77 0.18
Current ratio 1.13 1.23 2.85
Net debt to EBITDA 3.96 1.80 1.29

Dividend

Metric BA NOC Aerospace & Defense median
Dividend yield — 1.82% 0.89%
Payout ratio — 0.30 0.30

Size

Metric BA NOC Aerospace & Defense median
Market cap 136.70b 74.62b 1.52b

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