Analyzing Northrop Grumman Corporation (NOC) & Precision Castparts Corp. (PCP)
Northrop Grumman Corporation (NYSE: NOC) and Precision Castparts Corp. (NYSE:PCP) are both large-cap aerospace companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.
Institutional and Insider Ownership
81.5% of Northrop Grumman Corporation shares are held by institutional investors. 0.7% of Northrop Grumman Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Northrop Grumman Corporation pays an annual dividend of $4.00 per share and has a dividend yield of 1.5%. Precision Castparts Corp. does not pay a dividend. Northrop Grumman Corporation pays out 30.6% of its earnings in the form of a dividend. Northrop Grumman Corporation has increased its dividend for 9 consecutive years.
This table compares Northrop Grumman Corporation and Precision Castparts Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Northrop Grumman Corporation||9.20%||39.22%||8.74%|
|Precision Castparts Corp.||15.17%||12.16%||6.86%|
Earnings & Valuation
This table compares Northrop Grumman Corporation and Precision Castparts Corp.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Northrop Grumman Corporation||$25.19 billion||1.84||$3.80 billion||$13.09||20.31|
|Precision Castparts Corp.||N/A||N/A||N/A||N/A||N/A|
Northrop Grumman Corporation has higher revenue and earnings than Precision Castparts Corp..
This is a summary of current ratings and recommmendations for Northrop Grumman Corporation and Precision Castparts Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Northrop Grumman Corporation||0||6||7||1||2.64|
|Precision Castparts Corp.||0||0||0||0||N/A|
Northrop Grumman Corporation currently has a consensus target price of $268.34, suggesting a potential upside of 0.93%. Given Northrop Grumman Corporation’s higher possible upside, equities research analysts clearly believe Northrop Grumman Corporation is more favorable than Precision Castparts Corp..
Northrop Grumman Corporation beats Precision Castparts Corp. on 10 of the 13 factors compared between the two stocks.
About Northrop Grumman Corporation
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.
About Precision Castparts Corp.
Precision Castparts Corp. is a manufacturer of metal components and products. The Company has three business segments: Investment Cast Products, Forged Products and Airframe Products. The Company’s Investment Cast Products segment manufactures investment castings and provides related investment casting materials and alloys, for aircraft engines, industrial gas turbine (IGT) engines, airframes, armaments, medical prostheses, unmanned aerial vehicles and other industrial applications. The Company’s Forged Products segment manufactures forged components from titanium and nickel-based alloys, and nickel, titanium and cobalt-based alloys for aerospace and non-aerospace markets, which include products for oil and gas, chemical processing and pollution control applications. The Company’s Airframe Products segment manufactures fasteners, fastener systems, fluid fittings, aerostructures and precision components, primarily for aerospace applications.
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