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L3Harris Technologies Inc (LHX) vs Northrop Grumman Corporation (NOC)

L3Harris Technologies Inc and Northrop Grumman Corporation are both Aerospace & Defense companies. Northrop Grumman Corporation is the larger, with a market value of $71.0B against $44.8B — 1.6× the size. Northrop Grumman Corporation trades at the lower P/E: 16.5× against 25.0×. L3Harris Technologies Inc grew revenue faster over the last twelve months: 7.29% against 5.90%. Northrop Grumman Corporation has the higher net margin (10.5% vs 8.11%) and the higher return on invested capital (9.58% vs 5.12%). Both pay a dividend; L3Harris Technologies Inc yields more (1.99% vs 1.84%). Across the 23 metrics below, L3Harris Technologies Inc leads on 12 and Northrop Grumman Corporation on 11.

Valuation

Metric LHX NOC Aerospace & Defense median
P/E 24.95 16.48 31.81
P/S 2.02 1.72 3.55
P/B 2.33 4.13 2.59
Price to free cash flow 16.49 20.26 31.99
EV/EBITDA 15.15 14.05 18.08
EV/Sales 2.43 2.00 3.37
Earnings yield 4.01% 6.07% 1.38%
Free cash flow yield 6.06% 4.94% 0.21%

Profitability

Metric LHX NOC Aerospace & Defense median
Gross margin 25.48% 20.06% 25.48%
Operating margin 10.49% 10.72% 4.54%
Net margin 8.11% 10.48% 2.22%
Free cash flow margin 12.24% 8.50% 1.43%
Return on equity 9.50% 26.96% 6.43%
Return on assets 4.42% 8.97% 2.70%
Return on invested capital 5.12% 9.58% 1.56%

Growth

Metric LHX NOC Aerospace & Defense median
Revenue growth (TTM) 7.29% 5.90% 18.43%
EPS growth (last fiscal year) 8.39% 2.61% 24.27%
Revenue growth, 5-year CAGR 3.74% 2.66% 9.73%
Net income growth, 5-year CAGR 7.49% 5.57% 0.00%

Health

Metric LHX NOC Aerospace & Defense median
Debt to equity 0.55 0.81 0.24
Current ratio 1.18 1.17 2.72
Net debt to EBITDA 2.68 1.80 1.12

Dividend

Metric LHX NOC Aerospace & Defense median
Dividend yield 1.99% 1.84% 0.90%
Payout ratio 0.50 0.30 0.32

Size

Metric LHX NOC Aerospace & Defense median
Market cap 44.78b 70.98b 2.19b

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