Northrop Grumman (NYSE:NOC) versus NextNav (NASDAQ:NN) Critical Contrast

Northrop Grumman (NYSE:NOCGet Rating) and NextNav (NASDAQ:NNGet Rating) are both aerospace companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares Northrop Grumman and NextNav’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northrop Grumman 19.64% 35.83% 9.79%
NextNav N/A -219.22% -20.11%

Earnings & Valuation

This table compares Northrop Grumman and NextNav’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northrop Grumman $35.67 billion 1.92 $7.01 billion $43.62 10.07
NextNav $760,000.00 791.49 -$144.67 million N/A N/A

Northrop Grumman has higher revenue and earnings than NextNav.

Volatility & Risk

Northrop Grumman has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, NextNav has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Northrop Grumman and NextNav, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northrop Grumman 0 6 5 0 2.45
NextNav 0 0 3 0 3.00

Northrop Grumman presently has a consensus price target of $443.22, suggesting a potential upside of 0.87%. NextNav has a consensus price target of $16.00, suggesting a potential upside of 156.82%. Given NextNav’s stronger consensus rating and higher probable upside, analysts plainly believe NextNav is more favorable than Northrop Grumman.

Institutional & Insider Ownership

83.2% of Northrop Grumman shares are held by institutional investors. 0.3% of Northrop Grumman shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Northrop Grumman beats NextNav on 8 of the 12 factors compared between the two stocks.

About Northrop Grumman (Get Rating)

Northrop Grumman Corporation operates as an aerospace and defense company worldwide. 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, and produces weapons and mission systems. It offers products and services, such as integrated battle management systems, weapons systems and aircraft, and mission systems. This segment also provides command and control and weapons systems, including munitions and missiles; precision strike weapons; propulsion, such as air-breathing and hypersonic systems; gun systems and precision munitions; life cycle service and support for software, weapons systems, and aircraft; and logistics support, sustainment, operation, and modernization for air, sea, and ground systems. The company's Mission Systems segment offers cyber, 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. This segment also provides airborne multifunction sensors; maritime/land systems and sensors; navigation, targeting, and survivability solutions; and networked information solutions. Its Space Systems segment offers satellites and payloads; ground systems; missile defense systems and interceptors; launch vehicles and related propulsion systems; and strategic missiles. The company was founded in 1939 and is based in Falls Church, Virginia.

About NextNav (Get Rating)

NextNav Inc. provides next generation global positioning system (GPS) and 3D geolocation services. The company delivers next generation positioning, navigation, and timing solutions through its network-based Pinnacle and TerraPoiNT solutions. Its Pinnacle 3D geolocation service is commercially available in approximately 4,400 cities and towns in the United States; and its TerraPoiNT terrestrial-based encrypted network has deployments in 51 total markets nationally. The company sells its solutions directly to customers or through partners. The company was founded in 2007 and is headquartered in McLean, Virginia.

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