Northrop Grumman Corporation (NOC) vs Rocket Lab Corporation (RKLB)

Northrop Grumman Corporation and Rocket Lab Corporation are both Aerospace & Defense companies. Northrop Grumman Corporation is the larger, with a market value of $72.4B against $44.8B — 1.6× the size. Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; Northrop Grumman Corporation trades at 16.2×. Rocket Lab Corporation grew revenue faster over the last twelve months: 52.5% against 5.90%. Northrop Grumman Corporation has the higher net margin (10.5% vs −21.5%) and the higher return on invested capital (9.58% vs −11.5%). Across the 19 metrics below, Northrop Grumman Corporation leads on 13 and Rocket Lab Corporation on 6.

Valuation

Metric NOC RKLB Aerospace & Defense median
P/E 16.19 n/m 33.00
P/S 1.69 60.54 3.63
P/B 4.06 13.33 3.24
Price to free cash flow 19.90 n/m 34.01
EV/EBITDA 13.83 n/m 18.69
EV/Sales 1.97 57.61 3.94
Earnings yield 6.18% (0.37%) 1.31%
Free cash flow yield 5.03% (0.79%) 0.00%

Profitability

Metric NOC RKLB Aerospace & Defense median
Gross margin 20.06% 37.26% 25.48%
Operating margin 10.72% (29.06%) 4.54%
Net margin 10.48% (21.51%) 2.22%
Free cash flow margin 8.50% (48.13%) 0.00%
Return on equity 26.96% (7.92%) 6.43%
Return on assets 8.97% (5.76%) 2.70%
Return on invested capital 9.58% (11.46%) 1.56%

Growth

Metric NOC RKLB Aerospace & Defense median
Revenue growth (TTM) 5.90% 52.53% 18.43%
EPS growth (last fiscal year) 2.61% 2.63% —
Revenue growth, 5-year CAGR 2.66% 76.47% 9.62%
Net income growth, 5-year CAGR 5.57% 0.00% 0.00%

Health

Metric NOC RKLB Aerospace & Defense median
Debt to equity 0.81 0.01 0.24
Current ratio 1.17 5.48 2.72
Net debt to EBITDA 1.80 4.66 1.12

Dividend

Metric NOC RKLB Aerospace & Defense median
Dividend yield 1.73% — 1.04%
Payout ratio 0.23 0.00 0.00

Size

Metric NOC RKLB Aerospace & Defense median
Market cap 72.35b 44.78b 2.52b

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