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GE vs NOC

GE
GE Aerospace
NEUTRAL
Price
$303.60
Market Cap
$320.24B
Sector
Industrials
AI Confidence
85%
NOC
Northrop Grumman Corporation
NEUTRAL
Price
$656.98
Market Cap
$93.31B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
GE
37.71
NOC
22.6
Forward P/E
GE
35.2
NOC
21.72
P/B Ratio
GE
17.05
NOC
5.59
P/S Ratio
GE
6.98
NOC
2.22
EV/EBITDA
GE
30.66
NOC
15.65

Profitability

Gross Margin
GE
31.5%
NOC
19.81%
Operating Margin
GE
19.55%
NOC
16.53%
Profit Margin
GE
18.98%
NOC
9.97%
ROE
GE
44.69%
NOC
26.17%
ROA
GE
4.68%
NOC
6.64%

Growth

Revenue Growth
GE
17.6%
NOC
9.6%
Earnings Growth
GE
37.4%
NOC
15.2%

Financial Health

Debt/Equity
GE
1.14
NOC
1.07
Current Ratio
GE
1.04
NOC
1.1
Quick Ratio
GE
0.69
NOC
0.95

Dividends

Dividend Yield
GE
0.62%
NOC
1.39%
Payout Ratio
GE
17.89%
NOC
30.91%

AI Verdict

GE NEUTRAL

GE Aerospace exhibits a stark divergence between its operational growth and its deterministic financial health, highlighted by a weak Piotroski F-Score of 3/9. While the company delivers impressive earnings growth (37.4% YoY) and high ROE (44.69%), it trades at a significant premium to both its Graham Number ($56.79) and Intrinsic Value ($237.48). The valuation is stretched with a PEG ratio of 5.24, suggesting that current price levels have priced in aggressive future success. Despite strong analyst 'strong_buy' recommendations, the combination of poor deterministic health and bearish insider activity warrants a cautious approach.

Strengths
Exceptional Return on Equity (ROE) of 44.69%
Strong earnings track record with consistent beats and high average surprise (25.12%)
Robust revenue growth (17.6% YoY) and earnings growth (37.4% YoY)
Risks
Weak deterministic health indicated by a Piotroski F-Score of 3/9
Extreme valuation metrics, specifically a PEG ratio of 5.24 and P/B of 17.05
Tight liquidity position with a Quick Ratio of 0.69
NOC NEUTRAL

Northrop Grumman exhibits a stable financial foundation with a Piotroski F-Score of 4/9 and strong profitability metrics, including an ROE of 26.17%. While the stock trades at a significant premium to its Graham Number ($277.28), it remains below its growth-based intrinsic value of $858.45. However, a very high PEG ratio of 5.05 and bearish insider activity suggest that the current price may be overextended relative to near-term growth. The outlook is balanced between strong aerospace demand and valuation headwinds.

Strengths
Strong Return on Equity (ROE) of 26.17%
Consistent earnings beat track record (3 of last 4 quarters)
Healthy dividend payout ratio (30.91%) ensuring sustainability
Risks
Extreme PEG ratio (5.05) indicating overvaluation relative to growth
Bearish insider sentiment with 10 sell transactions and 0 buys
Tight liquidity indicated by a Quick Ratio of 0.95

Compare Another Pair

GE vs NOC: Head-to-Head Comparison

This page compares GE Aerospace (GE) and Northrop Grumman Corporation (NOC) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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