AAR Corp (AIR)vsNorthrop Grumman Corporation (NOC)
AIR
AAR Corp
$101.33
-7.22%
INDUSTRIALS · Cap: $4.01B
NOC
Northrop Grumman Corporation
$706.95
-1.01%
INDUSTRIALS · Cap: $100.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Northrop Grumman Corporation generates 1314% more annual revenue ($41.95B vs $2.97B). NOC leads profitability with a 10.0% profit margin vs 3.2%. AIR appears more attractively valued with a PEG of 2.40. AIR earns a higher WallStSmart Score of 57/100 (C).
AIR
Buy57
out of 100
Grade: C
NOC
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+5.2%
Fair Value
$119.81
Current Price
$101.33
$18.48 discount
Margin of Safety
+24.2%
Fair Value
$895.32
Current Price
$706.95
$188.37 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 92.0% YoY
Reasonable price relative to book value
15.9% revenue growth
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Generating 3.2B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
ROE of 6.9% — below average capital efficiency
3.2% margin — thin
Grey zone — moderate risk
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : AIR
The strongest argument for AIR centers on EPS Growth, Price/Book, Revenue Growth. Revenue growth of 15.9% demonstrates continued momentum.
Bull Case : NOC
The strongest argument for NOC centers on Market Cap, Return on Equity, Free Cash Flow.
Bear Case : AIR
The primary concerns for AIR are PEG Ratio, P/E Ratio, Return on Equity. Thin 3.2% margins leave little buffer for downturns.
Bear Case : NOC
The primary concerns for NOC are Altman Z-Score, Debt/Equity, Piotroski F-Score.
Key Dynamics to Monitor
AIR profiles as a growth stock while NOC is a value play — different risk/reward profiles.
AIR carries more volatility with a beta of 1.20 — expect wider price swings.
AIR is growing revenue faster at 15.9% — sustainability is the question.
NOC generates stronger free cash flow (3.2B), providing more financial flexibility.
Bottom Line
AIR scores higher overall (57/100 vs 56/100) and 15.9% revenue growth. NOC offers better value entry with a 24.2% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
AAR Corp
INDUSTRIALS · AEROSPACE & DEFENSE · USA
AAR Corp. The company is headquartered in Wood Dale, Illinois.
Visit Website →Northrop Grumman Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Northrop Grumman Corporation (NYSE: NOC) is an American multinational aerospace and defense technology company.
Visit Website →Compare with Other AEROSPACE & DEFENSE Stocks
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