Northrop Grumman (NYSE: NOC) and AeroVironment (NASDAQ:AVAV) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.
Earnings and Valuation
This table compares Northrop Grumman and AeroVironment’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Northrop Grumman||$24.51 billion||2.25||$2.20 billion||$13.42||23.57|
|AeroVironment||$264.87 million||4.83||$12.47 million||$1.27||42.20|
Volatility & Risk
Northrop Grumman has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, AeroVironment has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.
Institutional and Insider Ownership
81.2% of Northrop Grumman shares are held by institutional investors. Comparatively, 74.0% of AeroVironment shares are held by institutional investors. 0.7% of Northrop Grumman shares are held by company insiders. Comparatively, 11.0% of AeroVironment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Northrop Grumman and AeroVironment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for Northrop Grumman and AeroVironment, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Northrop Grumman currently has a consensus target price of $302.54, indicating a potential downside of 4.37%. AeroVironment has a consensus target price of $39.50, indicating a potential downside of 26.31%. Given Northrop Grumman’s stronger consensus rating and higher possible upside, equities analysts clearly believe Northrop Grumman is more favorable than AeroVironment.
Northrop Grumman pays an annual dividend of $4.00 per share and has a dividend yield of 1.3%. AeroVironment does not pay a dividend. Northrop Grumman pays out 29.8% of its earnings in the form of a dividend. Northrop Grumman has raised its dividend for 10 consecutive years.
Northrop Grumman beats AeroVironment on 11 of the 17 factors compared between the two stocks.
About Northrop Grumman
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.
AeroVironment, Inc. designs, develops, produces, supports and operates a portfolio of products and services for government agencies, businesses and consumers. The Company operates through two segments: Unmanned Aircraft Systems (UAS), which focuses primarily on the design, development, production, support and operation of UAS and tactical missile systems that provide situational awareness, multi-band communications, force protection and other mission effects, and Efficient Energy Systems (EES), which focuses primarily on the design, development, production, marketing, support and operation of electric energy systems. The Company supplies UAS, tactical missile systems and related services primarily to organizations within the United States Department of Defense (DoD). The Company also supplies charging systems and services for electric vehicles (EVs), and power cycling and test systems to commercial, consumer and government customers.
Receive News & Ratings for Northrop Grumman Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Northrop Grumman and related companies with MarketBeat.com's FREE daily email newsletter.