WallStSmart

CAE Inc. (CAE)vsNorthrop Grumman Corporation (NOC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Northrop Grumman Corporation generates 763% more annual revenue ($41.95B vs $4.86B). NOC leads profitability with a 10.0% profit margin vs 7.7%. CAE appears more attractively valued with a PEG of 1.83. NOC earns a higher WallStSmart Score of 56/100 (C).

CAE

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 5.0Value: 7.3Quality: 3.8
Piotroski: 3/9Altman Z: 1.31

NOC

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 7.5Value: 6.7Quality: 6.0
Piotroski: 3/9Altman Z: 1.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CAESignificantly Overvalued (-439.3%)

Margin of Safety

-439.3%

Fair Value

$5.85

Current Price

$26.78

$20.93 premium

UndervaluedFair: $5.85Overvalued
NOCUndervalued (+24.9%)

Margin of Safety

+24.9%

Fair Value

$904.35

Current Price

$691.21

$213.14 discount

UndervaluedFair: $904.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAE1 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

NOC3 strengths · Avg: 8.7/10
Market CapQuality
$97.36B9/10

Large-cap with strong market position

Return on EquityProfitability
26.2%9/10

Every $100 of equity generates 26 in profit

Free Cash FlowQuality
$3.23B8/10

Generating 3.2B in free cash flow

Areas to Watch

CAE4 concerns · Avg: 3.8/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

P/E RatioValuation
31.1x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.3%4/10

2.3% revenue growth

Return on EquityProfitability
7.7%3/10

ROE of 7.7% — below average capital efficiency

NOC4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

Debt/EquityHealth
1.183/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
5.362/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : CAE

The strongest argument for CAE centers on Price/Book.

Bull Case : NOC

The strongest argument for NOC centers on Market Cap, Return on Equity, Free Cash Flow.

Bear Case : CAE

The primary concerns for CAE are PEG Ratio, P/E Ratio, Revenue Growth.

Bear Case : NOC

The primary concerns for NOC are Altman Z-Score, Debt/Equity, Piotroski F-Score.

Key Dynamics to Monitor

CAE carries more volatility with a beta of 1.01 — expect wider price swings.

NOC is growing revenue faster at 9.6% — sustainability is the question.

NOC generates stronger free cash flow (3.2B), providing more financial flexibility.

Monitor AEROSPACE & DEFENSE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NOC scores higher overall (56/100 vs 49/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

CAE Inc.

INDUSTRIALS · AEROSPACE & DEFENSE · USA

CAE Inc. designs, manufactures and supplies simulation equipment and training solutions for the defense and security markets, commercial airlines, commercial aircraft operators, helicopter operators, aircraft manufacturers, and health education and service providers globally. The company is headquartered in Saint-Laurent, Canada.

Northrop Grumman Corporation

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Northrop Grumman Corporation (NYSE: NOC) is an American multinational aerospace and defense technology company.

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