Northrop Grumman Corporation (NOC) vs Transdigm Group Incorporated (TDG)

Northrop Grumman Corporation and Transdigm Group Incorporated are both Aerospace & Defense companies. Northrop Grumman Corporation is the larger, with a market value of $74.6B against $65.7B — 1.1× the size. Northrop Grumman Corporation trades at the lower P/E: 16.5× against 36.1×. Transdigm Group Incorporated grew revenue faster over the last twelve months: 16.7% against 6.51%. Transdigm Group Incorporated has the higher net margin (19.1% vs 10.4%) and the higher return on invested capital (14.3% vs 9.84%). Only Northrop Grumman Corporation pays a dividend (1.82%). Across the 22 metrics below, Northrop Grumman Corporation leads on 11 and Transdigm Group Incorporated on 11.

Valuation

Metric NOC TDG Aerospace & Defense median
P/E 16.52 36.15 28.48
P/S 1.71 6.83 2.95
P/B 3.99 n/m 2.68
Price to free cash flow 17.76 35.49 31.70
EV/EBITDA 13.87 19.55 16.85
EV/Sales 1.96 9.83 2.74
Earnings yield 6.05% 2.77% 0.89%
Free cash flow yield 5.63% 2.82% 0.00%

Profitability

Metric NOC TDG Aerospace & Defense median
Gross margin 20.02% 59.56% 26.41%
Operating margin 10.61% 46.04% 3.69%
Net margin 10.37% 19.09% 2.74%
Free cash flow margin 9.64% 19.25% 0.00%
Return on equity 26.07% (25.83%) 4.44%
Return on assets 8.88% 7.73% 1.90%
Return on invested capital 9.84% 14.27% 0.26%

Growth

Metric NOC TDG Aerospace & Defense median
Revenue growth (TTM) 6.51% 16.66% 18.03%
EPS growth (last fiscal year) 2.61% 25.21% 24.80%
Revenue growth, 5-year CAGR 2.66% 11.59% 9.73%
Net income growth, 5-year CAGR 5.57% 29.42% 0.00%

Health

Metric NOC TDG Aerospace & Defense median
Debt to equity 0.77 (3.34) 0.20
Current ratio 1.23 3.02 2.85
Net debt to EBITDA 1.80 5.85 1.29

Dividend

Metric NOC TDG Aerospace & Defense median
Dividend yield 1.82% 0.00% 0.91%
Payout ratio 0.30 0.00 0.30

Size

Metric NOC TDG Aerospace & Defense median
Market cap 74.62b 65.73b 1.78b

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