HII vs GE vs RTX vs LMT vs NOC

For growth investors, GE Aerospace (GE) is the stronger pick with 18.

5% revenue growth year-over-year, versus 2. 2% for Northrop Grumman Corporation (NOC). Northrop Grumman Corporation (NOC) offers the better valuation at 19. 0x trailing P/E (19. 8x forward), making it the more compelling value choice. Analysts rate GE Aerospace (GE) a "Buy" — based on 34 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.

0x versus GE Aerospace at 37. 1x. On forward P/E, Lockheed Martin Corporation is actually cheaper at 17. 1x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Northrop Grumman Corporation wins at 2. 23x versus GE Aerospace's 3. 39x.

Over the past 5 years, GE Aerospace (GE) delivered a total return of +362.

5%, compared to +46. 9% for Lockheed Martin Corporation (LMT). Over 10 years, the gap is even starker: RTX returned +234. 7% versus GE's +121. 0%. 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 GE Aerospace's 1. 14β — meaning GE is approximately 3891% more volatile than NOC relative to the S&P 500. On balance sheet safety, RTX Corporation (RTX) carries a lower debt/equity ratio of 59% versus 3% for Lockheed Martin Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), GE Aerospace (GE) is pulling ahead at 18.

5% versus 2. 2% for Northrop Grumman Corporation (NOC). On earnings-per-share growth, the picture is similar: RTX Corporation grew EPS 39. 7% year-over-year, compared to -3. 7% for Lockheed Martin Corporation. Over a 3-year CAGR, GE leads at 16. 3% 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.

GE Aerospace (GE) is the more profitable company, earning 19.

0% net margin versus 4. 8% for Huntington Ingalls Industries, Inc. — meaning it keeps 19. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GE leads at 19. 1% versus 4. 9% for HII. At the gross margin level — before operating expenses — GE leads at 36. 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. 23x versus GE Aerospace's 3. 39x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Lockheed Martin Corporation (LMT) trades at 17. 1x forward P/E versus 40. 0x for GE Aerospace — 22. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HII: 33. 5% to $420. 00.

All stocks in this comparison pay dividends.

Lockheed Martin Corporation (LMT) offers the highest yield at 2. 6%, versus 0. 4% for GE Aerospace (GE).

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, +186. 0% 10Y return). Both have compounded well over 10 years (NOC: +186. 0%, GE: +121. 0%), 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.

In terms of investment character: HII is a mid-cap quality compounder stock; GE is a large-cap high-growth stock; RTX is a large-cap quality compounder stock; LMT is a mid-cap quality compounder stock; NOC is a mid-cap quality compounder stock. HII, RTX, LMT, NOC pay a dividend while GE does not, making them suitable for different income and tax situations. 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.