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 $72.4B against $44.5B — 1.6× the size. Northrop Grumman Corporation trades at the lower P/E: 16.2× against 23.9×. 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 (2.32% vs 1.73%). 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 23.86 16.19 33.00
P/S 1.93 1.69 3.63
P/B 2.23 4.06 3.24
Price to free cash flow 15.77 19.90 34.01
EV/EBITDA 14.60 13.83 18.69
EV/Sales 2.34 1.97 3.94
Earnings yield 4.19% 6.18% 1.31%
Free cash flow yield 6.34% 5.03% 0.00%

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% 0.00%
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% —
Revenue growth, 5-year CAGR 3.74% 2.66% 9.62%
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 2.32% 1.73% 1.04%
Payout ratio 1.07 0.23 0.00

Size

Metric LHX NOC Aerospace & Defense median
Market cap 44.49b 72.35b 2.52b

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