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 $156.4B against $72.4B — 2.2× the size. Northrop Grumman Corporation trades at the lower P/E: 16.2× against 74.2×. The Boeing Company grew revenue faster over the last twelve months: 24.8% against 5.90%. Northrop Grumman Corporation has the higher net margin (10.5% vs 2.22%) and the higher return on invested capital (9.58% vs 8.99%). Both pay a dividend; Northrop Grumman Corporation yields more (1.73% vs 0.16%). Across the 22 metrics below, Northrop Grumman Corporation leads on 16 and The Boeing Company on 6.

Valuation

Metric BA NOC Aerospace & Defense median
P/E 74.18 16.19 33.00
P/S 1.67 1.69 3.63
P/B 25.63 4.06 3.24
Price to free cash flow n/m 19.90 34.01
EV/EBITDA 26.85 13.83 18.69
EV/Sales 1.94 1.97 3.94
Earnings yield 1.35% 6.18% 1.31%
Free cash flow yield (0.09%) 5.03% 0.00%

Profitability

Metric BA NOC Aerospace & Defense median
Gross margin 4.68% 20.06% 25.48%
Operating margin 4.89% 10.72% 4.54%
Net margin 2.22% 10.48% 2.22%
Free cash flow margin (0.14%) 8.50% 0.00%
Return on equity 148.84% 26.96% 6.43%
Return on assets 1.30% 8.97% 2.70%
Return on invested capital 8.99% 9.58% 1.56%

Growth

Metric BA NOC Aerospace & Defense median
Revenue growth (TTM) 24.78% 5.90% 18.43%
EPS growth (last fiscal year) 113.51% 2.61% —
Revenue growth, 5-year CAGR 9.00% 2.66% 9.62%
Net income growth, 5-year CAGR 0.00% 5.57% 0.00%

Health

Metric BA NOC Aerospace & Defense median
Debt to equity 7.51 0.81 0.24
Current ratio 1.14 1.17 2.72
Net debt to EBITDA 3.96 1.80 1.12

Dividend

Metric BA NOC Aerospace & Defense median
Dividend yield 0.16% 1.73% 1.04%
Payout ratio 0.00 0.23 0.00

Size

Metric BA NOC Aerospace & Defense median
Market cap 156.38b 72.35b 2.52b

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