CAE Inc. (CAE)vsNorthrop Grumman Corporation (NOC)
CAE
CAE Inc.
$26.78
+1.90%
INDUSTRIALS · Cap: $8.62B
NOC
Northrop Grumman Corporation
$691.21
+1.33%
INDUSTRIALS · Cap: $97.36B
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
Hold49
out of 100
Grade: D+
NOC
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-439.3%
Fair Value
$5.85
Current Price
$26.78
$20.93 premium
Margin of Safety
+24.9%
Fair Value
$904.35
Current Price
$691.21
$213.14 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
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
2.3% revenue growth
ROE of 7.7% — below average capital efficiency
Grey zone — moderate risk
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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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