NORTHROP GRUMMAN CORP /DE/ vs TransDigm Group Incorporated, two Aerospace & Defense stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Northrop Grumman earns its keep from government defense programs: 26.74% on equity, a 10.8% net margin, priced at a plain 15.67 times earnings and 4.16 times book, a $71.2B cap, with a 1.8% dividend. TransDigm earns its keep from owning aerospace parts nobody else makes, a fatter 21.91% net margin, but the market charges 41.34 times earnings for that, a $77.1B cap, and heavy debt underpins the returns. Northrop converts cash better at 4.64% against 2.4%. TransDigm has the richer margin and the steeper multiple. Northrop has the cheaper price, the stronger cash yield, and a dividend that TransDigm barely bothers with.
Comparison updated 2026-07-11.
| Metric | NOC | TDG |
|---|---|---|
| Price | $539.53 | $1291.90 |
| Market cap | $76.9B | $75.2B |
| Sector | Aerospace & Defense | Aerospace & Defense |
| Stage | Mature | Growth |
| Implied growth (priced in) | +2.9% | +13.1% |
| P/E | 16.9 | 40.3 |
| P/B | 4.49 | — |
| P/S | 1.81 | 7.91 |
| EV/EBITDA | 14.0 | 22.2 |
| Revenue growth | +4.9% | +13.3% |
| Gross margin | — | 59.4% |
| Operating margin | 10.0% | 46.3% |
| Net margin | 10.8% | 21.9% |
| Return on equity | 26.7% | — |
| Return on assets | 9.2% | 8.2% |
| Return on invested capital | 13.0% | 15.4% |
| FCF yield | 4.3% | 2.5% |
| Dividend yield | 1.7% | — |
| Debt / equity | 0.89 | — |
| Current ratio | 1.15 | 3.52 |
| Altman Z (solvency) | 2.84 | 1.58 |
| Piotroski F (quality) | 4 / 9 | 7 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.