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.
Honeywell International (NASDAQ:HON) and Northrop Grumman (NYSE:NOC) are both large-cap multi-sector conglomerates companies, but which is the superior business? We will compare the two companies based on the strength of their risk, media sentiment, community ranking, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Honeywell International pays an annual dividend of $4.32 per share and has a dividend yield of 2.1%. Northrop Grumman pays an annual dividend of $8.24 per share and has a dividend yield of 1.8%. Honeywell International pays out 50.1% of its earnings in the form of a dividend. Northrop Grumman pays out 57.6% 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 has raised its dividend for 13 consecutive years and Northrop Grumman has raised its dividend for 20 consecutive years. Honeywell International is clearly the better dividend stock, given its higher yield and lower payout ratio.
Honeywell International has higher earnings, but lower revenue 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.
75.9% of Honeywell International shares are owned by institutional investors. Comparatively, 83.4% of Northrop Grumman shares are owned by institutional investors. 0.4% of Honeywell International shares are owned by company insiders. Comparatively, 0.2% of Northrop Grumman shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Honeywell International has a net margin of 15.52% compared to Honeywell International's net margin of 5.38%. Northrop Grumman's return on equity of 35.88% beat Honeywell International's return on equity.
Honeywell International presently has a consensus price target of $215.71, indicating a potential upside of 6.69%. Northrop Grumman has a consensus price target of $514.33, indicating a potential upside of 14.10%. Given Honeywell International's stronger consensus rating and higher possible upside, analysts clearly believe Northrop Grumman is more favorable than Honeywell International.
Honeywell International received 534 more outperform votes than Northrop Grumman when rated by MarketBeat users. Likewise, 75.61% of users gave Honeywell International an outperform vote while only 62.33% of users gave Northrop Grumman an outperform vote.
Honeywell International has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Northrop Grumman has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.
In the previous week, Northrop Grumman had 6 more articles in the media than Honeywell International. MarketBeat recorded 16 mentions for Northrop Grumman and 10 mentions for Honeywell International. Northrop Grumman's average media sentiment score of 0.91 beat Honeywell International's score of 0.53 indicating that Honeywell International is being referred to more favorably in the media.
Summary
Honeywell International beats Northrop Grumman on 12 of the 21 factors compared between the two stocks.
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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.
Skip ChartThis 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.
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