WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Northrop Grumman Corporation generates 361% more annual revenue ($41.95B vs $9.11B). TDG leads profitability with a 22.2% profit margin vs 10.0%. TDG appears more attractively valued with a PEG of 2.91. NOC earns a higher WallStSmart Score of 56/100 (C).

NOC

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 7.5Value: 6.7Quality: 6.0
Piotroski: 3/9Altman Z: 1.96

TDG

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 7.5Value: 4.7Quality: 6.5
Piotroski: 5/9Altman Z: 0.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NOCUndervalued (+24.2%)

Margin of Safety

+24.2%

Fair Value

$895.32

Current Price

$706.95

$188.37 discount

UndervaluedFair: $895.32Overvalued
TDGSignificantly Overvalued (-527.5%)

Margin of Safety

-527.5%

Fair Value

$211.34

Current Price

$1177.39

$966.05 premium

UndervaluedFair: $211.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NOC3 strengths · Avg: 8.7/10
Market CapQuality
$100.90B9/10

Large-cap with strong market position

Return on EquityProfitability
26.2%9/10

Every $100 of equity generates 26 in profit

Free Cash FlowQuality
$3.23B8/10

Generating 3.2B in free cash flow

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
$66.49B9/10

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: 3.0/10
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

PEG RatioValuation
5.362/10

Expensive relative to growth rate

TDG4 concerns · Avg: 2.8/10
P/E RatioValuation
37.9x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
2.912/10

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 Market Cap, Return on Equity, Free Cash Flow.

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 Altman Z-Score, Debt/Equity, Piotroski F-Score.

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 0.92 — expect wider price swings.

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

NOC generates stronger free cash flow (3.2B), providing more financial flexibility.

Bottom Line

NOC scores higher overall (56/100 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.

Visit Website →

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.

Visit Website →

Want to dig deeper into these stocks?