Northrop Grumman Corporation (NYSE: NOC) is one of 44 publicly-traded companies in the “Aerospace & Defense” industry, but how does it contrast to its competitors? We will compare Northrop Grumman Corporation to similar businesses based on the strength of its analyst recommendations, valuation, risk, earnings, dividends, institutional ownership and profitability.

Volatility & Risk

Northrop Grumman Corporation has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Northrop Grumman Corporation’s competitors have a beta of 1.05, meaning that their average share price is 5% more volatile than the S&P 500.

Profitability

This table compares Northrop Grumman Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northrop Grumman Corporation 9.20% 39.22% 8.74%
Northrop Grumman Corporation Competitors -5.04% 25.16% 3.96%

Earnings and Valuation

This table compares Northrop Grumman Corporation and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Northrop Grumman Corporation $25.19 billion $3.80 billion 21.98
Northrop Grumman Corporation Competitors $8.56 billion $1.20 billion 82.80

Northrop Grumman Corporation has higher revenue and earnings than its competitors. Northrop Grumman Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

81.4% of Northrop Grumman Corporation shares are held by institutional investors. Comparatively, 70.1% of shares of all “Aerospace & Defense” companies are held by institutional investors. 0.7% of Northrop Grumman Corporation shares are held by insiders. Comparatively, 7.4% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Northrop Grumman Corporation pays an annual dividend of $4.00 per share and has a dividend yield of 1.4%. Northrop Grumman Corporation pays out 30.6% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.6% and pay out 36.1% of their earnings in the form of a dividend. Northrop Grumman Corporation has raised its dividend for 9 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations for Northrop Grumman Corporation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northrop Grumman Corporation 0 6 7 1 2.64
Northrop Grumman Corporation Competitors 552 2264 2416 91 2.38

Northrop Grumman Corporation presently has a consensus target price of $272.67, indicating a potential downside of 5.23%. As a group, “Aerospace & Defense” companies have a potential upside of 4.19%. Given Northrop Grumman Corporation’s competitors higher possible upside, analysts clearly believe Northrop Grumman Corporation has less favorable growth aspects than its competitors.

Summary

Northrop Grumman Corporation beats its competitors on 10 of the 15 factors compared.

Northrop Grumman Corporation Company Profile

Northrop Grumman Corporation is a global security company. The Company provides products, systems and solutions in autonomous systems; cyber; command, control, communications and computers, intelligence, surveillance and reconnaissance (C4ISR); strike, and logistics and modernization. The Company’s segments include Aerospace Systems, Mission Systems and Technology Services. The Company’s Aerospace Systems segment is engaged in the design, development, integration and production of manned aircraft, autonomous systems, spacecraft, high-energy laser systems, microelectronics and other systems/subsystems. The Mission Systems segment offers mission solutions and multifunction systems for Department of Defense (DoD), intelligence community, international, federal civil and commercial customers. The Technology Services segment provides logistics solutions supporting the full life cycle of platforms and systems for global defense and federal-civil customers.

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