The aerospace systems business was the real standout segment, seeing revenue gain by 14%. 1.30% General Dynamics. General Dynamics became a Dividend Aristocrat recently, and it has boosted payouts for 26 straight years now, incl… General Dynamics , and Northrop Grumman are set to report earnings this week. Northrop Grumman. Jim Cramer's Action Alerts PLUS holds Lockheed. Shares of General Dynamics (NYSE: GD) and Northrop Grumman (NYSE: NOC) have both more than doubled over the past five years, thanks to a truce in the partisan Washington budget battles and increased demand from an ever more dangerous world. Even when you incorporate future expectations on the bottom line, the two stocks stay very close to each other, with General Dynamics trading at 19 times forward estimates compared to Northrop's figure of just under 20. General Dynamics , and Northrop Grumman are set to report earnings this week. The company is perhaps the most disciplined of the prime defense contractors, raising eyebrows in the industry after deciding not to participate in a number of competitions in which it was considered among the favorites, because management determined the expected returns would not justify the investment needed. GD is the parent of Gulfstream, a major player in a business-jet market that has not yet recovered from the 2008-2009 recession. Image source: General Dynamics. The best of the best. The two defense stocks are very close to each other from a fundamental business standpoint. Summary. Northrop Grumman is a maker of aircraft, radar units, sensors, and electronics used on a variety of defense platforms, with the company recently placing a big bet on space via its $9.2 billion acquisition of Orbital ATK. General Dynamics. Below, you'll find more in-depth discussion of General Dynamics and Northrop Grumman with the objective of seeing which one is a smarter pick right now. Shares of General Dynamics (NYSE: GD) and Northrop Grumman (NYSE: NOC) have both more than doubled over the past five years, thanks to a truce in the partisan Washington budget battles and increased demand from an ever more dangerous world. Returns as of 02/04/2021. General Dynamics vs. Honeywell International Stock Data source: Yahoo! Northrop Grumman has seen slightly more encouraging performance. Salaries Northrop Grumman has 13,668 more total submitted salaries than General Dynamics. 19.70. Lou has followed the markets for more than two decades, developing extensive contacts including industry leaders, consultants, regulators, and labor representatives. Stock Advisor launched in February of 2002. The General Dynamics/Grumman F-111B is a long-range carrier-based interceptor aircraft that was planned to be a follow-on to the F-4 Phantom II for the United States Navy. Compare company reviews, salaries and ratings to find out if General Dynamics Information Technology or Northrop Grumman is right for you. Thanks to the addition of Orbital, Northrop is predicting a 15% uptick in revenue this calendar year. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Both General Dynamics (NYSE:GD) and Northrop Grumman (NYSE:NOC) have taken their share of projects resulting from the call for higher defense spending from the White House. The smaller mission systems and technology services segments had more mixed performance. Northrop Grumman weighs in with a 14-year streak of its own, and it made its own 11% dividend hike in June to bring its quarterly payout to an even $1 per share. Defense contractors have done well lately, responding to more favorable industry conditions both from a political standpoint and from the rise in the military threat level in recent years. The deal’s $9.6 billion enterprise value is greater than that of Northrop Grumman’s pending acquisition of fellow ... General Dynamics is a … Companies in the sub-industry of "aerospace & defense" are considered alternatives and competitors to General Dynamics, including Honeywell International (HON), The Boeing (BA), Lockheed Martin (LMT), Northrop Grumman (NOC), TransDigm Group (TDG), and HEICO (HEI). Image source: Northrop Grumman. General Dynamics has a slightly higher yield of 1.7%, but Northrop's 1.5% yield isn't too far behind and reflects the extent to which share-price gains have outpaced dividend growth recently. Here's a look at where things stand for General Dynamics and Northrop Grumman, with an eye toward determining which, if either, is a better buy today. Military. Both General Dynamics and Northrop Grumman have also dedicated themselves to dividend growth. General Dynamics beats Northrop Grumman on 9 of the 17 factors compared between the two stocks. General Dynamics became a Dividend Aristocrat recently, and it has boosted payouts for 26 straight years now, including an 11% increase earlier in 2017. But Northrop is still on the hunt for growth: In addition to buying Orbital, the company is rumored to be preparing to bid on a planned Japanese fighter jet, although it hasn't dabbled in fighters for nearly three decades. Given Lockheed Martin's stronger consensus rating and higher probable upside, equities analysts clearly believe Lockheed Martin is more favorable than General Dynamics. 1.83. Northrop, like General Dynamics, has significant exposure to areas of Pentagon focus. Why Shares of General Dynamics Were Up in November, General Dynamics Wins $9.4 Billion Sub Contract, Here's One Military Program So Important Lawmakers Actually Agree About It, Defense Secretary Pledges to Add Billions to Navy Shipbuilding Budget, Copyright, Trademark and Patent Information. Dan Caplinger has been a contract writer for the Motley Fool since 2006. Lockheed Martin, General Dynamics, Northrop Grumman, Boeing and Raytheon: America's 5 Top Defense Contractors. The only justification for that discount is the business-jet unit, and a bet on a Gulfstream recovery, which in time could close that valuation gap, is the most straightforward path to outperformance among large defense contractors today. Both General Dynamics and Northrop Grumman have also dedicated themselves to dividend growth. Learn more, read reviews and see open jobs. $54.76 billion. Navy Asks Shipbuilders: Can You Build Us a Warship for Just $100 Million? Income investors will also see dramatic similarities between the two stocks. The weapons business is performing well too. General Dynamics is trading at a lower price-to-earnings ratio than Northrop Grumman, indicating that it is currently the more affordable of the two stocks. 2.10. Glenn's take on the latest news about Northrop Grumman (NOC), Lockheed Martin (LMT), Boeing (BA) & General Dynamics (GD) on the VectorVest Trending Thursday Live Stream. Market segment by Application, split into. Shares of General Dynamics (NYSE: GD) and Northrop Grumman (NYSE: NOC) have both more than doubled over the past five years, thanks to a truce … Given its slightly more attractive growth profile, Northrop gets my vote for the better buy right now. Lockheed Martin, General Dynamics, Northrop Grumman, Boeing and Raytheon: America's 5 Top Defense Contractors. In General Dynamics, thanks to the Gulfstream issues, you get a relative value compared to its rivals. Is the recent performance an indication that defense stocks have peaked, or is this just a temporary lull that could provide a buying opportunity for long-term holders? As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. Aerospace & Defense companies have been doing relatively well in … Cumulative Growth of a $10,000 Investment in Stock Advisor, Better Buy: General Dynamics Corporation vs. Northrop Grumman @themotleyfool #stocks $GD $NOC, a slow recovery of the business-jet market is underway, its $9.2 billion acquisition of Orbital ATK, deciding not to participate in a number of competitions, are expected to come down off of record highs in 2017. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. The company's signature project is its planned B-21 bomber, a platform it won over competing bids from Boeing and Lockheed Martin that should generate more than $80 billion in revenue over its lifespan. Market data powered by FactSet and Web Financial Group. Northrop Grumman (NOC) closed Friday at $323.94 up 5.5% year to date and in correction territory 10.2% below its April 5 high of $360.88. Raytheon ,,, Market segment by Type, the product can be split into. These defense titans have each enjoyed a significant run-up over the last five years. Which is the better buy today? Northrop Grumman (NOC) closed Friday at $323.94 up 5.5% year to date and in correction territory 10.2% below its April 5 high of $360.88. Market data powered by FactSet and Web Financial Group. On Wednesday, General Dynamics and Northrop Grumman report before the opening bell with expected earnings-per-share of $2.14 and $2.47, respectively. A combination of factors, including COVID-19 containment situation, end-use market recovery & Recovery Timeline of 2020/ 2021 Defense stocks Northrop Grumman and Raytheon reported mixed Q4 results Thursday, after General Dynamics and Lockheed Martin topped estimates … General Dynamics has higher revenue and earnings than Northrop Grumman. Shares of General Dynamics and Northrop Grumman have both more than doubled over the past five years, thanks to a truce in the partisan Washington budget battles and increased demand from an ever more dangerous world.But both stocks head into earnings season in the doldrums, with Northrop Grumman flat for the year and General Dynamics actually down 5%. $26.13 billion. Defense contractors have done well lately, responding to more favorable industry conditions both from a political standpoint and from the rise in the. Stock Advisor launched in February of 2002. In the first quarter of this year General Dynamics reported a book-to-bill ratio for its aerospace unit of just 0.77, down from 1.3 in the fourth quarter of 2017. 26.20. The stock is 7.1% above its May 1 low of $302.35. However, those who see greater opportunity in General Dynamics' business focus areas should also do well. Shares of General Dynamics (NYSE:GD) and Northrop Grumman (NYSE:NOC) have both more than doubled over the past five years, thanks to a truce in the partisan Washington budget battles and increased demand from an ever more dangerous world. Finance. Which is the better buy today? Both stocks have a trailing earnings multiple of around 20 when you look at financials over the past 12 months. The defense industry has sported big share-price increases for most stocks in the sector, but fundamental performance has had more nuances. General Dynamics became a Dividend Aristocrat recently, and it has boosted payouts for 26 straight years now, including an 11% increase earlier in 2017. $26.13 billion. Lockheed Martin. A recent article posing the same question between Lockheed Martin and Raytheon prompted, among other comments, the title's question. $56.91 billion. Aerospace & Defense companies have been doing relatively well in … A Northrop Grumman RQ-4 Global Hawk drone in flight. Moreover, Northrop CEO Wes Bush unexpectedly announced last week he would be stepping down at year’s end, adding an additional layer of uncertainty to a company that already had a lot on its plate. I've been touting General Dynamics as the best buy among defense primes all year, and I've seen nothing to change my mind now. Defence. But both stocks head into earnings season in the doldrums, with Northrop Grumman flat for the year and General Dynamics … Yet going beyond the top line, General Dynamics was more efficient at turning its sales into profits. Returns as of 02/04/2021. When not arguing on Twitter or writing about the markets, Lou spends his free time out in nature, complaining online about the Baltimore Orioles or Watford FC, or listening to early 1990s alt rock. Although, looking towards the bottom line, both businesses had more of a positive impact on operating income than aerospace. Shares of Northrop Grumman (NYSE:NOC) are up 1.3% in premarket trade after beating estimates in Q4. Looking more closely at valuation, it's tough to distinguish the two defense contractors to a very large extent. General Dynamics has a consensus target price of $169.9375, indicating a potential upside of 15.86%. If Gulfstream can gain altitude, so too will General Dynamics shares. Radar. Northrop is a well-run company with an attractive portfolio, but it is also trading near historical highs and will likely find it difficult to outperform its peers in the quarters to come. Northrop Grumman. Which is the better buy today? Both General Dynamics and Northrop Grumman have done quite well over the past year. The best of the best. But both stocks head into earnings season in the doldrums, with Northrop Grumman flat for the year and General Dynamics … Northrop Grumman had 84 more reviews than General Dynamics Information Technology that mentioned "Large company" as a Con. 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