WallStSmart

Northrop Grumman Corporation (NOC)vsTextron Inc (TXT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Northrop Grumman Corporation generates 183% more annual revenue ($41.95B vs $14.80B). NOC leads profitability with a 10.0% profit margin vs 6.2%. TXT appears more attractively valued with a PEG of 1.16. TXT earns a higher WallStSmart Score of 67/100 (B-).

NOC

Buy

56

out of 100

Grade: C

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

TXT

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 5.5Value: 10.0Quality: 6.5
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NOCUndervalued (+24.9%)

Margin of Safety

+24.9%

Fair Value

$904.35

Current Price

$691.21

$213.14 discount

UndervaluedFair: $904.35Overvalued
TXTUndervalued (+59.4%)

Margin of Safety

+59.4%

Fair Value

$239.62

Current Price

$90.71

$148.91 discount

UndervaluedFair: $239.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NOC3 strengths · Avg: 8.7/10
Market CapQuality
$97.36B9/10

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

TXT4 strengths · Avg: 8.5/10
EPS GrowthGrowth
74.4%10/10

Earnings expanding 74.4% YoY

P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.6%8/10

15.6% revenue growth

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

TXT1 concerns · Avg: 3.0/10
Profit MarginProfitability
6.2%3/10

6.2% margin — thin

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 : TXT

The strongest argument for TXT centers on EPS Growth, P/E Ratio, Price/Book. Revenue growth of 15.6% demonstrates continued momentum. PEG of 1.16 suggests the stock is reasonably priced for its growth.

Bear Case : NOC

The primary concerns for NOC are Altman Z-Score, Debt/Equity, Piotroski F-Score.

Bear Case : TXT

The primary concerns for TXT are Profit Margin.

Key Dynamics to Monitor

NOC profiles as a value stock while TXT is a growth play — different risk/reward profiles.

TXT carries more volatility with a beta of 0.94 — expect wider price swings.

TXT is growing revenue faster at 15.6% — sustainability is the question.

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

Bottom Line

TXT scores higher overall (67/100 vs 56/100) and 15.6% revenue growth. NOC offers better value entry with a 24.9% margin of safety. Both earn "Strong 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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Textron Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Textron Inc. is an American industrial conglomerate based in Providence, Rhode Island. Textron's subsidiaries include Arctic Cat, Bell Textron, Textron Aviation (which itself includes the Beechcraft, Hawker, and Cessna brands), and Lycoming Engines.

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