Head-To-Head Survey: Northrop Grumman (NYSE:NOC) vs. Rolls-Royce Holdings PLC (OTCMKTS:RYCEY)

Rolls-Royce Holdings PLC (OTCMKTS:RYCEY – Get Free Report) and Northrop Grumman (NYSE:NOC – Get Free Report) are both large-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Rolls-Royce Holdings PLC and Northrop Grumman, as provided by MarketBeat.

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Northrop Grumman has a consensus target price of $659.30, suggesting a potential upside of 12.67%. Given Northrop Grumman’s higher probable upside, analysts plainly believe Northrop Grumman is more favorable than Rolls-Royce Holdings PLC.

Profitability

This table compares Rolls-Royce Holdings PLC and Northrop Grumman’s net margins, return on equity and return on assets.

Valuation and Earnings

This table compares Rolls-Royce Holdings PLC and Northrop Grumman”s gross revenue, earnings per share and valuation.

Rolls-Royce Holdings PLC has higher earnings, but lower revenue than Northrop Grumman.

Dividends

Rolls-Royce Holdings PLC pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. Northrop Grumman pays an annual dividend of $9.88 per share and has a dividend yield of 1.7%. Northrop Grumman pays out 31.4% of its earnings in the form of a dividend. Northrop Grumman has raised its dividend for 22 consecutive years. Northrop Grumman is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

0.1% of Rolls-Royce Holdings PLC shares are owned by institutional investors. Comparatively, 83.4% of Northrop Grumman shares are owned by institutional investors. 0.2% of Northrop Grumman shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Rolls-Royce Holdings PLC has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Northrop Grumman has a beta of -0.11, meaning that its share price is 111% less volatile than the S&P 500.

Summary

Northrop Grumman beats Rolls-Royce Holdings PLC on 10 of the 15 factors compared between the two stocks.

About Rolls-Royce Holdings PLC

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Rolls-Royce Holdings plc develops and delivers complex power and propulsion solutions for air, sea, and land in the United Kingdom and internationally. The company operates through four segments: Civil Aerospace, Defence, Power Systems, and New Markets. The Civil Aerospace segment develops, manufactures, markets, and sells aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services. The Defence segment is involved in the development, manufacture, marketing, and sale of military aero engines, naval engines, and submarine nuclear power plants, as well as offers aftermarket services. The Power Systems segment engages in the development, manufacture, marketing, and sale of integrated solutions for onsite power and propulsion under the mtu brand name. The New Markets segment develops, manufactures, and sells small modular reactor and new electrical power solutions. Rolls-Royce Holdings plc was founded in 1884 and is headquartered in London, the United Kingdom.

About Northrop Grumman

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Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. The company’s Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic ISR systems and vertical take-off and landing tactical ISR systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems. Its Defense Systems segment designs, develops, integrates, and produces tactical weapons and missile defense solutions, and provides sustainment, modernization, and training services for manned and unmanned aircraft and electronics systems. It also offers integrated, all-domain command, and control battle management systems, precision strike weapons; high speed air-breathing and hypersonic systems; high-performance gun systems, ammunition, precision munitions and advanced fuzes; aircraft and mission systems logistics support, sustainment, operations and modernization; and warfighter training services. The company’s Mission Systems segment offers command, control, communications and computers, intelligence, surveillance, and reconnaissance systems; radar, electro-optical/infrared and acoustic sensors; electronic warfare systems; advanced communications and network systems; cyber solutions; intelligence processing systems; navigation; and maritime power, propulsion, and payload launch systems. Its Space Systems segment offers satellites, spacecraft systems, subsystems, sensors, and payloads; ground systems; missile defense systems and interceptors; launch vehicles and related propulsion systems; and strategic missiles. Northrop Grumman Corporation was founded in 1939 and is based in Falls Church, Virginia.

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