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 $74.6B against $48.1B — 1.6× the size. Northrop Grumman Corporation trades at the lower P/E: 16.5× against 23.8×. L3Harris Technologies Inc grew revenue faster over the last twelve months: 7.33% against 6.51%. Northrop Grumman Corporation has the higher net margin (10.4% vs 8.62%) and the higher return on invested capital (9.84% vs 5.69%). Both pay a dividend; L3Harris Technologies Inc yields more (1.91% vs 1.82%). 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 23.79 16.52 28.48
P/S 2.07 1.71 2.95
P/B 2.38 3.99 2.68
Price to free cash flow 13.20 17.76 31.70
EV/EBITDA 14.77 13.87 16.85
EV/Sales 2.41 1.96 2.74
Earnings yield 4.20% 6.05% 0.89%
Free cash flow yield 7.58% 5.63% 0.00%

Profitability

Metric LHX NOC Aerospace & Defense median
Gross margin 25.55% 20.02% 26.41%
Operating margin 11.01% 10.61% 3.69%
Net margin 8.62% 10.37% 2.74%
Free cash flow margin 15.65% 9.64% 0.00%
Return on equity 10.11% 26.07% 4.44%
Return on assets 4.74% 8.88% 1.90%
Return on invested capital 5.69% 9.84% 0.26%

Growth

Metric LHX NOC Aerospace & Defense median
Revenue growth (TTM) 7.33% 6.51% 18.03%
EPS growth (last fiscal year) 8.39% 2.61% 24.80%
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 0.54 0.77 0.20
Current ratio 1.20 1.23 2.85
Net debt to EBITDA 2.68 1.80 1.29

Dividend

Metric LHX NOC Aerospace & Defense median
Dividend yield 1.91% 1.82% 0.91%
Payout ratio 0.46 0.30 0.30

Size

Metric LHX NOC Aerospace & Defense median
Market cap 48.06b 74.62b 1.78b

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