Moog (NYSE: MOG.A) and Northrop Grumman Corporation (NYSE:NOC) are both mid-cap aerospace companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Profitability

This table compares Moog and Northrop Grumman Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Moog 5.50% 14.06% 4.83%
Northrop Grumman Corporation 9.24% 39.76% 8.94%

Institutional and Insider Ownership

82.8% of Moog shares are owned by institutional investors. Comparatively, 81.5% of Northrop Grumman Corporation shares are owned by institutional investors. 2.4% of Moog shares are owned by insiders. Comparatively, 0.7% of Northrop Grumman Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Moog and Northrop Grumman Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Moog 0 2 0 0 2.00
Northrop Grumman Corporation 0 6 9 0 2.60

Moog currently has a consensus price target of $75.00, indicating a potential upside of Infinity. Northrop Grumman Corporation has a consensus price target of $292.01, indicating a potential downside of 1.47%. Given Moog’s higher possible upside, research analysts plainly believe Moog is more favorable than Northrop Grumman Corporation.

Dividends

Northrop Grumman Corporation pays an annual dividend of $4.00 per share and has a dividend yield of 1.3%. Moog does not pay a dividend. Northrop Grumman Corporation pays out 29.8% of its earnings in the form of a dividend. Moog has increased its dividend for 9 consecutive years.

Valuation and Earnings

This table compares Moog and Northrop Grumman Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Moog N/A N/A N/A $3.75 N/A
Northrop Grumman Corporation $25.19 billion 2.05 $3.80 billion $13.42 22.08

Northrop Grumman Corporation has higher revenue and earnings than Moog. Moog is trading at a lower price-to-earnings ratio than Northrop Grumman Corporation, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Moog has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Northrop Grumman Corporation has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Summary

Northrop Grumman Corporation beats Moog on 9 of the 15 factors compared between the two stocks.

Moog Company Profile

Moog Inc. is a designer, manufacturer and integrator of precision motion and fluid controls and systems for a range of applications in aerospace and defense and industrial markets. The Company has five segments: Aircraft Controls, Space and Defense Controls, Industrial Systems, Components and Medical Devices. Its Aircraft Controls segment designs, manufactures and integrates primary and secondary flight controls for military and commercial aircraft, and provides aftermarket support. Its Space and Defense Controls segment provides controls for satellites, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance and other defense applications. Its Industrial Systems segment serves a global customer base across various markets. Its Components segment offers slip rings, fiber optic rotary joints, motors, sensors and handpieces product line. Its Medical Devices segment focuses on infusion therapy and enteral clinical nutrition.

Northrop Grumman Corporation Company Profile

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.

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