Northrop Grumman Corporation (NOC)vsRio Tinto ADR (RIO)
NOC
Northrop Grumman Corporation
$549.52
-0.50%
INDUSTRIALS · Cap: $78.44B
RIO
Rio Tinto ADR
$105.38
+2.20%
BASIC MATERIALS · Cap: $171.59B
Smart Verdict
WallStSmart Research — data-driven comparison
Rio Tinto ADR generates 36% more annual revenue ($57.64B vs $42.37B). RIO leads profitability with a 17.3% profit margin vs 10.8%. NOC appears more attractively valued with a PEG of 4.16. NOC earns a higher WallStSmart Score of 63/100 (C+).
NOC
Buy63
out of 100
Grade: C+
RIO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.9%
Fair Value
$421.87
Current Price
$549.52
$127.65 premium
Margin of Safety
+33.7%
Fair Value
$147.89
Current Price
$105.38
$42.51 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 84.9% YoY
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Attractively priced relative to earnings
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 25.3%
Generating 2.5B in free cash flow
Areas to Watch
4.4% revenue growth
Grey zone — moderate risk
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Earnings declined 5.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : NOC
The strongest argument for NOC centers on EPS Growth, Market Cap, Return on Equity.
Bull Case : RIO
The strongest argument for RIO centers on Market Cap, P/E Ratio, Price/Book. Profitability is solid with margins at 17.3% and operating margin at 25.3%. Revenue growth of 14.6% demonstrates continued momentum.
Bear Case : NOC
The primary concerns for NOC are Revenue Growth, Altman Z-Score, Debt/Equity.
Bear Case : RIO
The primary concerns for RIO are PEG Ratio, EPS Growth.
Key Dynamics to Monitor
NOC profiles as a value stock while RIO is a mature play — different risk/reward profiles.
RIO carries more volatility with a beta of 0.63 — expect wider price swings.
RIO is growing revenue faster at 14.6% — sustainability is the question.
RIO generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
NOC scores higher overall (63/100 vs 54/100). RIO offers better value entry with a 33.7% 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.
Northrop Grumman Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Northrop Grumman Corporation (NYSE: NOC) is an American multinational aerospace and defense technology company.
Visit Website →Rio Tinto ADR
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
Rio Tinto Group is dedicated to the exploration, extraction and processing of mineral resources worldwide. The company is headquartered in London, the United Kingdom.
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