NOC vs. HON, LMT, BA, GD, TDG, HEI, TDY, TXT, CW, and HII
Should you be buying Northrop Grumman stock or one of its competitors? The main competitors of Northrop Grumman include Honeywell International (HON), Lockheed Martin (LMT), Boeing (BA), General Dynamics (GD), TransDigm Group (TDG), HEICO (HEI), Teledyne Technologies (TDY), Textron (TXT), Curtiss-Wright (CW), and Huntington Ingalls Industries (HII). These companies are all part of the "aerospace & defense" industry.
Northrop Grumman (NYSE:NOC) and Honeywell International (NASDAQ:HON) are both large-cap aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, media sentiment, profitability, earnings, institutional ownership, community ranking, valuation, dividends and risk.
Northrop Grumman pays an annual dividend of $8.24 per share and has a dividend yield of 1.7%. Honeywell International pays an annual dividend of $4.32 per share and has a dividend yield of 2.1%. Northrop Grumman pays out 57.6% of its earnings in the form of a dividend. Honeywell International pays out 50.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Honeywell International is clearly the better dividend stock, given its higher yield and lower payout ratio.
Northrop Grumman has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Honeywell International has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.
83.4% of Northrop Grumman shares are owned by institutional investors. Comparatively, 75.9% of Honeywell International shares are owned by institutional investors. 0.2% of Northrop Grumman shares are owned by company insiders. Comparatively, 0.4% of Honeywell International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
In the previous week, Honeywell International had 25 more articles in the media than Northrop Grumman. MarketBeat recorded 61 mentions for Honeywell International and 36 mentions for Northrop Grumman. Northrop Grumman's average media sentiment score of 0.61 beat Honeywell International's score of 0.46 indicating that Northrop Grumman is being referred to more favorably in the media.
Honeywell International has a net margin of 15.52% compared to Northrop Grumman's net margin of 5.38%. Honeywell International's return on equity of 35.88% beat Northrop Grumman's return on equity.
Honeywell International has lower revenue, but higher earnings than Northrop Grumman. Honeywell International is trading at a lower price-to-earnings ratio than Northrop Grumman, indicating that it is currently the more affordable of the two stocks.
Honeywell International received 532 more outperform votes than Northrop Grumman when rated by MarketBeat users. Likewise, 75.33% of users gave Honeywell International an outperform vote while only 62.02% of users gave Northrop Grumman an outperform vote.
Northrop Grumman currently has a consensus price target of $515.07, indicating a potential upside of 7.24%. Honeywell International has a consensus price target of $224.50, indicating a potential upside of 10.73%. Given Honeywell International's stronger consensus rating and higher possible upside, analysts clearly believe Honeywell International is more favorable than Northrop Grumman.
Summary
Honeywell International beats Northrop Grumman on 14 of the 20 factors compared between the two stocks.
Get Northrop Grumman News Delivered to You Automatically
Sign up to receive the latest news and ratings for NOC and its competitors with MarketBeat's FREE daily newsletter.
This chart shows the number of new MarketBeat users adding NOC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
Northrop Grumman Competitors List
Related Companies and Tools
