Analyzing Northrop Grumman (NYSE:NOC) and Wheels Up Experience (NYSE:UP)

Northrop Grumman (NYSE:NOC) and Wheels Up Experience (NYSE:UP) are both aerospace companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Insider & Institutional Ownership

83.4% of Northrop Grumman shares are held by institutional investors. Comparatively, 98.2% of Wheels Up Experience shares are held by institutional investors. 0.2% of Northrop Grumman shares are held by insiders. Comparatively, 0.2% of Wheels Up Experience shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Northrop Grumman and Wheels Up Experience, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northrop Grumman	0	6	10	1	2.71
Wheels Up Experience	1	0	0	0	1.00

Northrop Grumman currently has a consensus price target of $613.15, indicating a potential upside of 0.64%. Given Northrop Grumman’s stronger consensus rating and higher possible upside, analysts clearly believe Northrop Grumman is more favorable than Wheels Up Experience.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northrop Grumman	9.74%	25.52%	7.89%
Wheels Up Experience	-42.68%	N/A	-25.12%

Risk and Volatility

Northrop Grumman has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, Wheels Up Experience has a beta of 2.32, meaning that its share price is 132% more volatile than the S&P 500.

Earnings and Valuation

This table compares Northrop Grumman and Wheels Up Experience”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northrop Grumman	$41.03 billion	2.13	$4.17 billion	$27.13	22.46
Wheels Up Experience	$792.10 million	1.48	-$339.64 million	($0.47)	-3.56

Northrop Grumman has higher revenue and earnings than Wheels Up Experience. Wheels Up Experience is trading at a lower price-to-earnings ratio than Northrop Grumman, indicating that it is currently the more affordable of the two stocks.

Summary

Northrop Grumman beats Wheels Up Experience on 13 of the 15 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 Wheels Up Experience

Wheels Up Experience Inc. provides private aviation services in the United States and internationally. The company offers Wheels Up Membership program that consists of two primary membership categories, such as Individual membership for individual and business fliers; and UP for Business membership consists of small and medium enterprise, and custom enterprise solutions for business fliers that tend to spend at higher levels. Its Wheels Up Charter provides charter flight services for passenger groups, sports teams, global corporate events, and tour operations, as well as global passenger, cargo, emergency, and government services. In addition, the company offers wholesale charter services; group charter and cargo flights; maintenance, repair, and operations services; fixed-base operator services; safety and security services; and government, defense, emergency, and medical transport missions. It serves individuals, small and medium enterprises, and corporate customers. As of December 31, 2024, the company operated a fleet of 154 owned and leased aircraft. Wheels Up Experience Inc. was founded in 2013 and is headquartered in Chamblee, Georgia.