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NOC vs UPS

NOC
Northrop Grumman Corporation
NEUTRAL
Price
$656.98
Market Cap
$93.31B
Sector
Industrials
AI Confidence
85%
UPS
United Parcel Service, Inc.
NEUTRAL
Price
$108.24
Market Cap
$91.97B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
NOC
22.6
UPS
16.5
Forward P/E
NOC
21.72
UPS
13.68
P/B Ratio
NOC
5.59
UPS
5.66
P/S Ratio
NOC
2.22
UPS
1.04
EV/EBITDA
NOC
15.65
UPS
9.39

Profitability

Gross Margin
NOC
19.81%
UPS
22.6%
Operating Margin
NOC
16.53%
UPS
10.75%
Profit Margin
NOC
9.97%
UPS
6.29%
ROE
NOC
26.17%
UPS
33.77%
ROA
NOC
6.64%
UPS
7.44%

Growth

Revenue Growth
NOC
9.6%
UPS
-3.2%
Earnings Growth
NOC
15.2%
UPS
4.6%

Financial Health

Debt/Equity
NOC
1.07
UPS
1.76
Current Ratio
NOC
1.1
UPS
1.22
Quick Ratio
NOC
0.95
UPS
1.11

Dividends

Dividend Yield
NOC
1.39%
UPS
6.06%
Payout Ratio
NOC
30.91%
UPS
100.0%

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
UPS NEUTRAL

UPS exhibits strong operational health with a Piotroski F-Score of 7/9, yet it faces significant valuation and sustainability headwinds. The stock is currently trading at a premium ($108.24) relative to both its Graham Number ($53.11) and Intrinsic Value ($91.18). While the 6.06% dividend yield is attractive, the 100% payout ratio is a critical red flag indicating a lack of cushion for earnings volatility. Negative revenue growth (-3.20%) suggests a struggle for organic expansion, though efficiency gains have kept earnings slightly positive.

Strengths
Strong Piotroski F-Score (7/9) indicating robust financial health
High Return on Equity (ROE) of 33.77%
Attractive dividend yield of 6.06%
Risks
Unsustainable dividend payout ratio of 100%
Negative year-over-year revenue growth (-3.20%)
Trading significantly above defensive fair value (Graham Number)

Compare Another Pair

NOC vs UPS: Head-to-Head Comparison

This page compares Northrop Grumman Corporation (NOC) and United Parcel Service, Inc. (UPS) 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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