Heico Corporation (HEI)vsNorthrop Grumman Corporation (NOC)
HEI
Heico Corporation
$279.09
-0.57%
INDUSTRIALS · Cap: $39.16B
NOC
Northrop Grumman Corporation
$691.21
+1.33%
INDUSTRIALS · Cap: $97.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Northrop Grumman Corporation generates 805% more annual revenue ($41.95B vs $4.63B). HEI leads profitability with a 15.4% profit margin vs 10.0%. HEI appears more attractively valued with a PEG of 2.62. HEI earns a higher WallStSmart Score of 58/100 (C).
HEI
Buy58
out of 100
Grade: C
NOC
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-138.2%
Fair Value
$135.34
Current Price
$279.09
$143.75 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
Strong operational efficiency at 22.2%
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Generating 3.2B in free cash flow
Areas to Watch
Trading at 8.6x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Grey zone — moderate risk
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : HEI
The strongest argument for HEI centers on Operating Margin. Profitability is solid with margins at 15.4% and operating margin at 22.2%. Revenue growth of 14.4% demonstrates continued momentum.
Bull Case : NOC
The strongest argument for NOC centers on Market Cap, Return on Equity, Free Cash Flow.
Bear Case : HEI
The primary concerns for HEI are Price/Book, PEG Ratio, P/E Ratio. A P/E of 55.6x leaves little room for execution misses.
Bear Case : NOC
The primary concerns for NOC are Altman Z-Score, Debt/Equity, Piotroski F-Score.
Key Dynamics to Monitor
HEI profiles as a mature stock while NOC is a value play — different risk/reward profiles.
HEI carries more volatility with a beta of 1.02 — expect wider price swings.
HEI is growing revenue faster at 14.4% — sustainability is the question.
NOC generates stronger free cash flow (3.2B), providing more financial flexibility.
Bottom Line
HEI scores higher overall (58/100 vs 56/100), backed by strong 15.4% margins and 14.4% revenue growth. NOC offers better value entry with a 24.9% 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.
Heico Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
HEICO Corporation designs, manufactures, and sells aerospace, defense, and electronic products and services in the United States and internationally. The company is headquartered in Hollywood, Florida.
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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