Elbit Systems Ltd. (ESLT) vs Northrop Grumman Corporation (NOC)

Elbit Systems Ltd. and Northrop Grumman Corporation are both Aerospace & Defense companies. Northrop Grumman Corporation is the larger, with a market value of $71.0B against $34.8B — 2.0× the size. Northrop Grumman Corporation trades at the lower P/E: 16.5× against 55.2×. Elbit Systems Ltd. grew revenue faster over the last twelve months: 13.7% against 5.90%. Northrop Grumman Corporation has the higher net margin (10.5% vs 7.44%) and the lower return on invested capital (9.58% vs 13.3%). Both pay a dividend; Northrop Grumman Corporation yields more (1.84% vs 0.50%). Across the 23 metrics below, Northrop Grumman Corporation leads on 14 and Elbit Systems Ltd. on 9.

Valuation

Metric ESLT NOC Aerospace & Defense median
P/E 55.22 16.48 31.81
P/S 4.13 1.72 3.55
P/B 8.29 4.13 2.59
Price to free cash flow 51.69 20.26 31.99
EV/EBITDA 35.79 14.05 18.08
EV/Sales 4.05 2.00 3.37
Earnings yield 1.81% 6.07% 1.38%
Free cash flow yield 1.93% 4.94% 0.21%

Profitability

Metric ESLT NOC Aerospace & Defense median
Gross margin 25.03% 20.06% 25.48%
Operating margin 9.22% 10.72% 4.54%
Net margin 7.44% 10.48% 2.22%
Free cash flow margin 8.00% 8.50% 1.43%
Return on equity 0.00% 26.96% 6.43%
Return on assets 4.90% 8.97% 2.70%
Return on invested capital 13.26% 9.58% 1.56%

Growth

Metric ESLT NOC Aerospace & Defense median
Revenue growth (TTM) 13.70% 5.90% 18.43%
EPS growth (last fiscal year) 58.64% 2.61% 24.27%
Revenue growth, 5-year CAGR 11.23% 2.66% 9.73%
Net income growth, 5-year CAGR 17.59% 5.57% 0.00%

Health

Metric ESLT NOC Aerospace & Defense median
Debt to equity 0.06 0.81 0.24
Current ratio 1.39 1.17 2.72
Net debt to EBITDA (0.57) 1.80 1.12

Dividend

Metric ESLT NOC Aerospace & Defense median
Dividend yield 0.50% 1.84% 0.90%
Payout ratio 0.28 0.30 0.32

Size

Metric ESLT NOC Aerospace & Defense median
Market cap 34.76b 70.98b 2.19b

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