GE Aerospace (GE) vs Northrop Grumman Corporation (NOC)

GE Aerospace and Northrop Grumman Corporation are both Aerospace & Defense companies. GE Aerospace is the larger, with a market value of $325.2B against $74.6B — 4.4× the size. Northrop Grumman Corporation trades at the lower P/E: 16.5× against 36.0×. GE Aerospace grew revenue faster over the last twelve months: 19.6% against 6.51%. GE Aerospace has the higher net margin (17.3% vs 10.4%) and the higher return on invested capital (27.4% vs 9.84%). Both pay a dividend; Northrop Grumman Corporation yields more (1.82% vs 0.56%). Across the 23 metrics below, Northrop Grumman Corporation leads on 13 and GE Aerospace on 10.

Valuation

Metric GE NOC Aerospace & Defense median
P/E 35.97 16.52 28.48
P/S 6.18 1.71 2.95
P/B 18.31 3.99 2.68
Price to free cash flow 49.64 17.76 31.70
EV/EBITDA 24.57 13.87 16.85
EV/Sales 6.38 1.96 2.74
Earnings yield 2.78% 6.05% 0.89%
Free cash flow yield 2.01% 5.63% 0.00%

Profitability

Metric GE NOC Aerospace & Defense median
Gross margin 35.22% 20.02% 26.41%
Operating margin 23.56% 10.61% 3.69%
Net margin 17.31% 10.37% 2.74%
Free cash flow margin 15.68% 9.64% 0.00%
Return on equity 49.51% 26.07% 4.44%
Return on assets 7.13% 8.88% 1.90%
Return on invested capital 27.35% 9.84% 0.26%

Growth

Metric GE NOC Aerospace & Defense median
Revenue growth (TTM) 19.62% 6.51% 18.03%
EPS growth (last fiscal year) 35.89% 2.61% 24.80%
Revenue growth, 5-year CAGR (9.57%) 2.66% 9.73%
Net income growth, 5-year CAGR 10.72% 5.57% 0.00%

Health

Metric GE NOC Aerospace & Defense median
Debt to equity 1.09 0.77 0.20
Current ratio 0.98 1.23 2.85
Net debt to EBITDA 0.65 1.80 1.29

Dividend

Metric GE NOC Aerospace & Defense median
Dividend yield 0.56% 1.82% 0.91%
Payout ratio 0.20 0.30 0.30

Size

Metric GE NOC Aerospace & Defense median
Market cap 325.23b 74.62b 1.78b

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