WallStSmart

Northrop Grumman Corporation (NOC)vsSAP SE ADR (SAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Northrop Grumman Corporation generates 13% more annual revenue ($42.37B vs $37.34B). SAP leads profitability with a 19.6% profit margin vs 10.8%. SAP appears more attractively valued with a PEG of 0.73. NOC earns a higher WallStSmart Score of 63/100 (C+).

NOC

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 4.0Quality: 4.5
Piotroski: 3/9Altman Z: 1.96

SAP

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 5.3Quality: 7.5
Piotroski: 5/9Altman Z: 3.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NOCSignificantly Overvalued (-60.9%)

Margin of Safety

-60.9%

Fair Value

$421.87

Current Price

$549.52

$127.65 premium

UndervaluedFair: $421.87Overvalued
SAPSignificantly Overvalued (-16.9%)

Margin of Safety

-16.9%

Fair Value

$168.01

Current Price

$173.70

$5.69 premium

UndervaluedFair: $168.01Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NOC4 strengths · Avg: 9.0/10
EPS GrowthGrowth
84.9%10/10

Earnings expanding 84.9% YoY

Market CapQuality
$78.44B9/10

Large-cap with strong market position

Return on EquityProfitability
28.5%9/10

Every $100 of equity generates 29 in profit

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

SAP6 strengths · Avg: 9.2/10
Market CapQuality
$204.11B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
30.0%10/10

Strong operational efficiency at 30.0%

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.738/10

Growing faster than its price suggests

Free Cash FlowQuality
$3.27B8/10

Generating 3.3B in free cash flow

Areas to Watch

NOC4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

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

SAP0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : NOC

The strongest argument for NOC centers on EPS Growth, Market Cap, Return on Equity.

Bull Case : SAP

The strongest argument for SAP centers on Market Cap, Operating Margin, Altman Z-Score. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 0.73 suggests the stock is reasonably priced for its growth.

Bear Case : NOC

The primary concerns for NOC are Revenue Growth, Altman Z-Score, Debt/Equity.

Bear Case : SAP

No major red flags identified for SAP, but monitor valuation.

Key Dynamics to Monitor

NOC profiles as a value stock while SAP is a mature play — different risk/reward profiles.

SAP carries more volatility with a beta of 0.71 — expect wider price swings.

SAP is growing revenue faster at 6.0% — sustainability is the question.

SAP generates stronger free cash flow (3.3B), providing more financial flexibility.

Bottom Line

NOC scores higher overall (63/100 vs 62/100). 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.

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SAP SE ADR

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.

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