WallStSmart

Northrop Grumman Corporation (NOC)vsTransdigm Group Incorporated (TDG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Northrop Grumman Corporation generates 365% more annual revenue ($42.37B vs $9.11B). TDG leads profitability with a 22.2% profit margin vs 10.8%. TDG appears more attractively valued with a PEG of 2.85. 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

TDG

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 7.5Value: 2.7Quality: 6.5
Piotroski: 5/9Altman Z: 0.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NOCSignificantly Overvalued (-60.9%)

Margin of Safety

-60.9%

Fair Value

$421.87

Current Price

$559.60

$137.73 premium

UndervaluedFair: $421.87Overvalued
TDGSignificantly Overvalued (-60.2%)

Margin of Safety

-60.2%

Fair Value

$827.74

Current Price

$1233.37

$405.63 premium

UndervaluedFair: $827.74Overvalued

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
$80.69B9/10

Large-cap with strong market position

Return on EquityProfitability
28.5%9/10

Every $100 of equity generates 29 in profit

P/E RatioValuation
17.8x8/10

Attractively priced relative to earnings

TDG4 strengths · Avg: 9.5/10
Operating MarginProfitability
45.6%10/10

Strong operational efficiency at 45.6%

Debt/EquityHealth
-3.2310/10

Conservative balance sheet, low leverage

Market CapQuality
$65.20B9/10

Large-cap with strong market position

Profit MarginProfitability
22.2%9/10

Keeps 22 of every $100 in revenue as profit

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

TDG4 concerns · Avg: 2.8/10
P/E RatioValuation
37.2x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
2.852/10

Expensive relative to growth rate

EPS GrowthGrowth
-12.9%2/10

Earnings declined 12.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : NOC

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

Bull Case : TDG

The strongest argument for TDG centers on Operating Margin, Debt/Equity, Market Cap. Profitability is solid with margins at 22.2% and operating margin at 45.6%. Revenue growth of 13.9% demonstrates continued momentum.

Bear Case : NOC

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

Bear Case : TDG

The primary concerns for TDG are P/E Ratio, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

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

TDG carries more volatility with a beta of 0.95 — expect wider price swings.

TDG is growing revenue faster at 13.9% — sustainability is the question.

TDG generates stronger free cash flow (772M), providing more financial flexibility.

Bottom Line

NOC scores higher overall (63/100 vs 53/100). 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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Transdigm Group Incorporated

INDUSTRIALS · AEROSPACE & DEFENSE · USA

TransDigm Group is a publicly traded aerospace manufacturing company headquartered in Cleveland, Ohio. TransDigm develops and manufactures engineered aerospace components.

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