Reviewing Hensoldt (OTC:HNSDF) & Northrop Grumman (NYSE:NOC)

Hensoldt (OTC:HNSDF) and Northrop Grumman (NYSE:NOC) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hensoldt	N/A	N/A	N/A
Northrop Grumman	12.07%	24.24%	8.40%

Valuation & Earnings

This table compares Hensoldt and Northrop Grumman’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hensoldt	N/A	N/A	N/A	N/A	N/A
Northrop Grumman	$38.69 billion	1.81	$4.90 billion	$30.48	15.20

Northrop Grumman has higher revenue and earnings than Hensoldt.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Hensoldt and Northrop Grumman, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hensoldt	1	1	1	0	2.00
Northrop Grumman	1	7	8	0	2.44

Northrop Grumman has a consensus target price of $500.20, indicating a potential upside of 7.97%. Given Northrop Grumman’s stronger consensus rating and higher possible upside, analysts plainly believe Northrop Grumman is more favorable than Hensoldt.

Institutional & Insider Ownership

82.4% of Northrop Grumman shares are owned by institutional investors. 0.3% of Northrop Grumman shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Northrop Grumman beats Hensoldt on 9 of the 9 factors compared between the two stocks.

About Hensoldt

HENSOLDT AG, together with its subsidiaries, provides defense and security electronic sensor solutions worldwide. It offers air surveillance, airborne, ground based, security, naval and coastal, and space radars; identification friend or foe and secure data links; and commercial shipping solutions. The company also provides airborne, vehicle, surveillance, and maritime optronics; space optics; optronic sensor devices; and sights, scopes, and night-vision attachments. In addition, it offers electronic support/SIGINT products, receivers, direction finders, electronic attackers/jammers, self-protection EW software suites and ground support stations, and electronic warfare systems. Further, the company provides avionics, including airborne computing, flight and mission data recording and management, connectivity, mission management/pilot assistance, video management, unmanned, mission planning support, data analysis and evaluation, and cloud solutions, as well as integrated airborne solutions; and counter UAV solutions, and command and control software products. Additionally, it offers products and system support, simulation, and training services; and antenna, cabling, shelter, and tester solutions. The company was incorporated in 2020 and is headquartered in Taufkirchen, Germany.

About Northrop Grumman

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 in the United States and internationally. 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.