Northrop Grumman Corporation (NOC)vsVertex Pharmaceuticals Inc (VRTX)
NOC
Northrop Grumman Corporation
$691.21
+1.33%
INDUSTRIALS · Cap: $97.36B
VRTX
Vertex Pharmaceuticals Inc
$454.97
+1.42%
HEALTHCARE · Cap: $113.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Northrop Grumman Corporation generates 250% more annual revenue ($41.95B vs $12.00B). VRTX leads profitability with a 32.9% profit margin vs 10.0%. VRTX appears more attractively valued with a PEG of 2.19. VRTX earns a higher WallStSmart Score of 66/100 (B-).
NOC
Buy56
out of 100
Grade: C
VRTX
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.9%
Fair Value
$904.35
Current Price
$691.21
$213.14 discount
Margin of Safety
+36.5%
Fair Value
$716.04
Current Price
$454.97
$261.07 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Generating 3.2B in free cash flow
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 39.6%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Conservative balance sheet, low leverage
Areas to Watch
Grey zone — moderate risk
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : NOC
The strongest argument for NOC centers on Market Cap, Return on Equity, Free Cash Flow.
Bull Case : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 32.9% and operating margin at 39.6%.
Bear Case : NOC
The primary concerns for NOC are Altman Z-Score, Debt/Equity, Piotroski F-Score.
Bear Case : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
NOC profiles as a value stock while VRTX is a mature play — different risk/reward profiles.
VRTX carries more volatility with a beta of 0.32 — expect wider price swings.
NOC is growing revenue faster at 9.6% — sustainability is the question.
NOC generates stronger free cash flow (3.2B), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (66/100 vs 56/100), backed by strong 32.9% margins. 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.
Visit Website →Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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