Northrop Grumman Corporation (NOC) vs RTX Corporation (RTX)

Northrop Grumman Corporation and RTX Corporation are both Aerospace & Defense companies. RTX Corporation is the larger, with a market value of $253.9B against $72.4B — 3.5× the size. Northrop Grumman Corporation trades at the lower P/E: 16.2× against 32.9×. RTX Corporation grew revenue faster over the last twelve months: 11.8% against 5.90%. Northrop Grumman Corporation has the higher net margin (10.5% vs 8.28%) and the higher return on invested capital (9.58% vs 6.74%). Both pay a dividend; RTX Corporation yields more (2.71% vs 1.73%). Across the 23 metrics below, Northrop Grumman Corporation leads on 14 and RTX Corporation on 9.

Valuation

Metric NOC RTX Aerospace & Defense median
P/E 16.19 32.94 33.00
P/S 1.69 2.74 3.63
P/B 4.06 3.76 3.24
Price to free cash flow 19.90 23.29 34.01
EV/EBITDA 13.83 19.14 18.69
EV/Sales 1.97 3.05 3.94
Earnings yield 6.18% 3.04% 1.31%
Free cash flow yield 5.03% 4.29% 0.00%

Profitability

Metric NOC RTX Aerospace & Defense median
Gross margin 20.06% 20.35% 25.48%
Operating margin 10.72% 11.21% 4.54%
Net margin 10.48% 8.28% 2.22%
Free cash flow margin 8.50% 11.75% 0.00%
Return on equity 26.96% 11.70% 6.43%
Return on assets 8.97% 4.54% 2.70%
Return on invested capital 9.58% 6.74% 1.56%

Growth

Metric NOC RTX Aerospace & Defense median
Revenue growth (TTM) 5.90% 11.84% 18.43%
EPS growth (last fiscal year) 2.61% 39.72% —
Revenue growth, 5-year CAGR 2.66% 9.38% 9.62%
Net income growth, 5-year CAGR 5.57% 0.00% 0.00%

Health

Metric NOC RTX Aerospace & Defense median
Debt to equity 0.81 0.55 0.24
Current ratio 1.17 1.01 2.72
Net debt to EBITDA 1.80 2.23 1.12

Dividend

Metric NOC RTX Aerospace & Defense median
Dividend yield 1.73% 2.71% 1.04%
Payout ratio 0.23 0.59 0.00

Size

Metric NOC RTX Aerospace & Defense median
Market cap 72.35b 253.92b 2.52b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack