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 $333.1B against $72.4B — 4.6× the size. Northrop Grumman Corporation trades at the lower P/E: 16.2× against 38.2×. GE Aerospace grew revenue faster over the last twelve months: 21.7% against 5.90%. GE Aerospace has the higher net margin (17.7% vs 10.5%) and the higher return on invested capital (26.5% vs 9.58%). Both pay a dividend; Northrop Grumman Corporation yields more (1.73% vs 0.29%). 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 38.21 16.19 33.00
P/S 6.72 1.69 3.63
P/B 19.04 4.06 3.24
Price to free cash flow 49.62 19.90 34.01
EV/EBITDA 26.96 13.83 18.69
EV/Sales 6.91 1.97 3.94
Earnings yield 2.62% 6.18% 1.31%
Free cash flow yield 2.02% 5.03% 0.00%

Profitability

Metric GE NOC Aerospace & Defense median
Gross margin 35.38% 20.06% 25.48%
Operating margin 23.20% 10.72% 4.54%
Net margin 17.72% 10.48% 2.22%
Free cash flow margin 16.89% 8.50% 0.00%
Return on equity 48.22% 26.96% 6.43%
Return on assets 7.09% 8.97% 2.70%
Return on invested capital 26.53% 9.58% 1.56%

Growth

Metric GE NOC Aerospace & Defense median
Revenue growth (TTM) 21.69% 5.90% 18.43%
EPS growth (last fiscal year) 35.89% 2.61% —
Revenue growth, 5-year CAGR (9.57%) 2.66% 9.62%
Net income growth, 5-year CAGR 10.72% 5.57% 0.00%

Health

Metric GE NOC Aerospace & Defense median
Debt to equity 1.07 0.81 0.24
Current ratio 0.98 1.17 2.72
Net debt to EBITDA 0.65 1.80 1.12

Dividend

Metric GE NOC Aerospace & Defense median
Dividend yield 0.29% 1.73% 1.04%
Payout ratio 0.03 0.23 0.00

Size

Metric GE NOC Aerospace & Defense median
Market cap 333.06b 72.35b 2.52b

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