Northrop Grumman (NYSE:NOC – Get Free Report) and XTI Aerospace (NASDAQ:XTIA – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
Institutional and Insider Ownership
83.4% of Northrop Grumman shares are owned by institutional investors. Comparatively, 11.7% of XTI Aerospace shares are owned by institutional investors. 0.2% of Northrop Grumman shares are owned by insiders. Comparatively, 7.4% of XTI Aerospace shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Northrop Grumman and XTI Aerospace, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Northrop Grumman | 0 | 8 | 11 | 1 | 2.65 |
| XTI Aerospace | 1 | 0 | 0 | 1 | 2.50 |
Valuation and Earnings
This table compares Northrop Grumman and XTI Aerospace”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Northrop Grumman | $42.89 billion | 1.91 | $4.18 billion | $31.48 | 18.33 |
| XTI Aerospace | $22.49 million | 2.75 | -$68.76 million | ($5.20) | -0.31 |
Northrop Grumman has higher revenue and earnings than XTI Aerospace. XTI Aerospace is trading at a lower price-to-earnings ratio than Northrop Grumman, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Northrop Grumman has a beta of -0.11, indicating that its stock price is 111% less volatile than the S&P 500. Comparatively, XTI Aerospace has a beta of 4.79, indicating that its stock price is 379% more volatile than the S&P 500.
Profitability
This table compares Northrop Grumman and XTI Aerospace’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Northrop Grumman | 10.48% | 24.25% | 8.15% |
| XTI Aerospace | -171.13% | -2,044.78% | -105.02% |
Summary
Northrop Grumman beats XTI Aerospace on 11 of the 14 factors compared between the two stocks.
About Northrop Grumman
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.
About XTI Aerospace
XTI Aerospace, Inc. engages in the provision of aircraft manufacturing. It primarily focuses on the light and mid-size business aircraft market. The company was founded in April 1999 and is headquartered in Englewood, CO.
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