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 $71.0B against $62.7B — 1.1× the size. Northrop Grumman Corporation trades at the lower P/E: 16.5× against 34.6×. Transdigm Group Incorporated grew revenue faster over the last twelve months: 16.7% against 5.90%. Transdigm Group Incorporated has the higher net margin (19.1% vs 10.5%) and the higher return on invested capital (14.3% vs 9.58%). Only Northrop Grumman Corporation pays a dividend (1.84%). 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 16.48 34.57 31.81
P/S 1.72 6.53 3.55
P/B 4.13 n/m 2.59
Price to free cash flow 20.26 33.94 31.99
EV/EBITDA 14.05 18.96 18.08
EV/Sales 2.00 9.53 3.37
Earnings yield 6.07% 2.89% 1.38%
Free cash flow yield 4.94% 2.95% 0.21%

Profitability

Metric NOC TDG Aerospace & Defense median
Gross margin 20.06% 59.56% 25.48%
Operating margin 10.72% 46.04% 4.54%
Net margin 10.48% 19.09% 2.22%
Free cash flow margin 8.50% 19.25% 1.43%
Return on equity 26.96% (25.83%) 6.43%
Return on assets 8.97% 7.73% 2.70%
Return on invested capital 9.58% 14.27% 1.56%

Growth

Metric NOC TDG Aerospace & Defense median
Revenue growth (TTM) 5.90% 16.66% 18.43%
EPS growth (last fiscal year) 2.61% 25.21% 24.27%
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 0.81 (3.34) 0.24
Current ratio 1.17 3.02 2.72
Net debt to EBITDA 1.80 5.85 1.12

Dividend

Metric NOC TDG Aerospace & Defense median
Dividend yield 1.84% 0.00% 0.90%
Payout ratio 0.30 0.00 0.32

Size

Metric NOC TDG Aerospace & Defense median
Market cap 70.98b 62.70b 2.19b

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