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NOC vs RTX

NOC
Northrop Grumman Corporation
NEUTRAL
Price
$656.98
Market Cap
$93.31B
Sector
Industrials
AI Confidence
85%
RTX
RTX Corporation
NEUTRAL
Price
$195.79
Market Cap
$263.53B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
NOC
22.6
RTX
39.39
Forward P/E
NOC
21.72
RTX
26.01
P/B Ratio
NOC
5.59
RTX
4.03
P/S Ratio
NOC
2.22
RTX
2.97
EV/EBITDA
NOC
15.65
RTX
20.17

Profitability

Gross Margin
NOC
19.81%
RTX
20.08%
Operating Margin
NOC
16.53%
RTX
11.02%
Profit Margin
NOC
9.97%
RTX
7.6%
ROE
NOC
26.17%
RTX
10.95%
ROA
NOC
6.64%
RTX
3.88%

Growth

Revenue Growth
NOC
9.6%
RTX
12.1%
Earnings Growth
NOC
15.2%
RTX
8.3%

Financial Health

Debt/Equity
NOC
1.07
RTX
0.6
Current Ratio
NOC
1.1
RTX
1.03
Quick Ratio
NOC
0.95
RTX
0.67

Dividends

Dividend Yield
NOC
1.39%
RTX
1.39%
Payout Ratio
NOC
30.91%
RTX
53.83%

AI Verdict

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
RTX NEUTRAL

RTX exhibits stable financial health with a Piotroski F-Score of 5/9, yet it is trading at a severe premium compared to its Graham Number ($73.73) and Intrinsic Value ($96.67). While the company boasts an exceptional track record of earnings beats over 25 quarters and solid revenue growth, the valuation is stretched with a PEG ratio of 2.75. This fundamental overvaluation is compounded by bearish insider sentiment and a weak technical trend, suggesting that while the business is strong, the stock price is currently decoupled from its deterministic value.

Strengths
Exceptional earnings track record with consistent beats over 25 quarters
Strong revenue growth of 12.10% YoY
Conservative Debt/Equity ratio of 0.60
Risks
Significant overvaluation relative to Graham and Intrinsic value models
Bearish insider activity with $32.68M in sales by top executives
High PEG ratio (2.75) indicating price growth exceeds earnings growth

Compare Another Pair

NOC vs RTX: Head-to-Head Comparison

This page compares Northrop Grumman Corporation (NOC) and RTX Corporation (RTX) 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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