NOC vs GD

For growth investors, General Dynamics Corporation (GD) is the stronger pick with 10.

1% revenue growth year-over-year, versus 2. 2% for Northrop Grumman Corporation (NOC). Northrop Grumman Corporation (NOC) offers the better valuation at 19. 2x trailing P/E (20. 0x forward), making it the more compelling value choice. Analysts rate Northrop Grumman Corporation (NOC) a "Buy" — based on 35 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Northrop Grumman Corporation (NOC) is the cheapest at 19.

2x versus General Dynamics Corporation at 22. 5x. On forward P/E, Northrop Grumman Corporation is actually cheaper at 20. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Northrop Grumman Corporation wins at 2. 26x versus General Dynamics Corporation's 2. 99x.

Over the past 5 years, General Dynamics Corporation (GD) delivered a total return of +94.

3%, compared to +61. 3% for Northrop Grumman Corporation (NOC). Over 10 years, the gap is even starker: NOC returned +189. 8% versus GD's +174. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Northrop Grumman Corporation (NOC) is the lower-risk stock at 0.

03β versus General Dynamics Corporation's 0. 56β — meaning GD is approximately 1862% more volatile than NOC relative to the S&P 500. On balance sheet safety, General Dynamics Corporation (GD) carries a lower debt/equity ratio of 38% versus 118% for Northrop Grumman Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), General Dynamics Corporation (GD) is pulling ahead at 10.

1% versus 2. 2% for Northrop Grumman Corporation (NOC). On earnings-per-share growth, the picture is similar: General Dynamics Corporation grew EPS 13. 4% year-over-year, compared to 2. 6% for Northrop Grumman Corporation. Over a 3-year CAGR, GD leads at 10. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Northrop Grumman Corporation (NOC) is the more profitable company, earning 10.

0% net margin versus 8. 0% for General Dynamics Corporation — meaning it keeps 10. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NOC leads at 10. 2% versus 10. 2% for GD. At the gross margin level — before operating expenses — NOC leads at 19. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Northrop Grumman Corporation (NOC) is the more undervalued stock at a PEG of 2. 26x versus General Dynamics Corporation's 2. 99x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Northrop Grumman Corporation (NOC) trades at 20. 0x forward P/E versus 21. 1x for General Dynamics Corporation — 1. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NOC: 30. 9% to $731. 46.

All stocks in this comparison pay dividends.

General Dynamics Corporation (GD) offers the highest yield at 1. 7%, versus 1. 6% for Northrop Grumman Corporation (NOC).

For long-horizon retirement investors, Northrop Grumman Corporation (NOC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

03), 1. 6% yield, +189. 8% 10Y return). Both have compounded well over 10 years (NOC: +189. 8%, GD: +174. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.