Pricing Log in Create free account

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 $258.9B against $74.6B — 3.5× the size. Northrop Grumman Corporation trades at the lower P/E: 16.5× against 30.9×. RTX Corporation grew revenue faster over the last twelve months: 11.6% against 6.51%. Northrop Grumman Corporation has the higher net margin (10.4% vs 8.75%) and the higher return on invested capital (9.84% vs 7.12%). Both pay a dividend; Northrop Grumman Corporation yields more (1.82% vs 1.47%). Across the 23 metrics below, Northrop Grumman Corporation leads on 16 and RTX Corporation on 7.

Valuation

Metric NOC RTX Aerospace & Defense median
P/E 16.52 30.88 28.48
P/S 1.71 2.71 2.95
P/B 3.99 3.67 2.68
Price to free cash flow 17.76 28.50 31.70
EV/EBITDA 13.87 18.39 16.85
EV/Sales 1.96 3.00 2.74
Earnings yield 6.05% 3.24% 0.89%
Free cash flow yield 5.63% 3.51% 0.00%

Profitability

Metric NOC RTX Aerospace & Defense median
Gross margin 20.02% 21.10% 26.41%
Operating margin 10.61% 11.77% 3.69%
Net margin 10.37% 8.75% 2.74%
Free cash flow margin 9.64% 9.51% 0.00%
Return on equity 26.07% 12.24% 4.44%
Return on assets 8.88% 4.87% 1.90%
Return on invested capital 9.84% 7.12% 0.26%

Growth

Metric NOC RTX Aerospace & Defense median
Revenue growth (TTM) 6.51% 11.63% 18.03%
EPS growth (last fiscal year) 2.61% 39.72% 24.80%
Revenue growth, 5-year CAGR 2.66% 9.38% 9.73%
Net income growth, 5-year CAGR 5.57% 0.00% 0.00%

Health

Metric NOC RTX Aerospace & Defense median
Debt to equity 0.77 0.53 0.20
Current ratio 1.23 1.05 2.85
Net debt to EBITDA 1.80 2.23 1.29

Dividend

Metric NOC RTX Aerospace & Defense median
Dividend yield 1.82% 1.47% 0.91%
Payout ratio 0.30 0.46 0.30

Size

Metric NOC RTX Aerospace & Defense median
Market cap 74.62b 258.93b 1.78b

Compare with another peer

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