Northrop Grumman (NYSE:NOC) and Vertical Aerospace (NYSE:EVTL) Head to Head Analysis

Northrop Grumman (NYSE:NOC) and Vertical Aerospace (NYSE:EVTL) are both aerospace companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northrop Grumman	9.82%	25.49%	8.01%
Vertical Aerospace	N/A	N/A	-489.91%

Valuation & Earnings

This table compares Northrop Grumman and Vertical Aerospace”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northrop Grumman	$41.03 billion	1.92	$4.17 billion	$27.80	19.89
Vertical Aerospace	N/A	N/A	-$998.35 million	($48.92)	-0.14

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

Risk and Volatility

Northrop Grumman has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500. Comparatively, Vertical Aerospace has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Northrop Grumman and Vertical Aerospace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northrop Grumman	0	6	12	2	2.80
Vertical Aerospace	1	0	5	0	2.67

Northrop Grumman currently has a consensus price target of $646.94, indicating a potential upside of 17.01%. Vertical Aerospace has a consensus price target of $11.40, indicating a potential upside of 68.76%. Given Vertical Aerospace’s higher possible upside, analysts plainly believe Vertical Aerospace is more favorable than Northrop Grumman.

Institutional and Insider Ownership

83.4% of Northrop Grumman shares are owned by institutional investors. Comparatively, 81.2% of Vertical Aerospace shares are owned by institutional investors. 0.2% of Northrop Grumman shares are owned by insiders. Comparatively, 74.8% of Vertical Aerospace shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Northrop Grumman beats Vertical Aerospace on 11 of the 14 factors compared between the two stocks.

About Northrop Grumman

Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. The company’s Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic ISR systems and vertical take-off and landing tactical ISR systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems. Its Defense Systems segment designs, develops, integrates, and produces tactical weapons and missile defense solutions, and provides sustainment, modernization, and training services for manned and unmanned aircraft and electronics systems. It also offers integrated, all-domain command, and control battle management systems, precision strike weapons; high speed air-breathing and hypersonic systems; high-performance gun systems, ammunition, precision munitions and advanced fuzes; aircraft and mission systems logistics support, sustainment, operations and modernization; and warfighter training services. The company’s Mission Systems segment offers command, control, communications and computers, intelligence, surveillance, and reconnaissance systems; radar, electro-optical/infrared and acoustic sensors; electronic warfare systems; advanced communications and network systems; cyber solutions; intelligence processing systems; navigation; and maritime power, propulsion, and payload launch systems. Its Space Systems segment offers satellites, spacecraft systems, subsystems, sensors, and payloads; ground systems; missile defense systems and interceptors; launch vehicles and related propulsion systems; and strategic missiles. Northrop Grumman Corporation was founded in 1939 and is based in Falls Church, Virginia.

About Vertical Aerospace

Vertical Aerospace Ltd., an aerospace and technology company, engages in designing, manufacturing, and selling zero operating emission electric vertical takeoff and landing (eVTOL) aircraft for use in the advanced air mobility in the United Kingdom. It offers VX4, an eVTOL aircraft. Vertical Aerospace Ltd. was founded in 2016 and is headquartered in Bristol, the United Kingdom.