TDY vs LDOS vs LMT vs RTX vs NOC

For growth investors, RTX Corporation (RTX) is the stronger pick with 9.

7% revenue growth year-over-year, versus 2. 2% for Northrop Grumman Corporation (NOC). Leidos Holdings, Inc. (LDOS) offers the better valuation at 11. 8x trailing P/E (11. 1x forward), making it the more compelling value choice. Analysts rate Teledyne Technologies Incorporated (TDY) a "Buy" — based on 18 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, Leidos Holdings, Inc.

(LDOS) is the cheapest at 11. 8x versus RTX Corporation at 35. 6x. On forward P/E, Leidos Holdings, Inc. is actually cheaper at 11. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Leidos Holdings, Inc. wins at 0. 54x versus Northrop Grumman Corporation's 2. 23x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, RTX Corporation (RTX) delivered a total return of +120.

1%, compared to +33. 4% for Leidos Holdings, Inc. (LDOS). Over 10 years, the gap is even starker: TDY returned +573. 5% versus LMT's +156. 2%. 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 Teledyne Technologies Incorporated's 0. 95β — meaning TDY is approximately 3205% more volatile than NOC relative to the S&P 500. On balance sheet safety, Teledyne Technologies Incorporated (TDY) carries a lower debt/equity ratio of 25% versus 3% for Lockheed Martin Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), RTX Corporation (RTX) is pulling ahead at 9.

7% 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, RTX leads at 9. 7% 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.

Teledyne Technologies Incorporated (TDY) is the more profitable company, earning 14.

6% net margin versus 6. 7% for Lockheed Martin Corporation — meaning it keeps 14. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TDY leads at 18. 8% versus 10. 0% for RTX. At the gross margin level — before operating expenses — TDY leads at 39. 2%, 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, Leidos Holdings, Inc. (LDOS) is the more undervalued stock at a PEG of 0. 54x versus Northrop Grumman Corporation's 2. 23x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Leidos Holdings, Inc. (LDOS) trades at 11. 1x forward P/E versus 26. 2x for Teledyne Technologies Incorporated — 15. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LDOS: 55. 5% to $204. 00.

In this comparison, LMT (2.

6% yield), NOC (1. 6% yield), RTX (1. 5% yield), LDOS (1. 2% yield) pay a dividend. TDY does not pay a meaningful dividend and should not be held primarily for income.

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%, TDY: +573. 5%), 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.

These companies operate in different sectors (TDY (Technology) and LDOS (Technology) and LMT (Industrials) and RTX (Industrials) and NOC (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: TDY is a mid-cap quality compounder stock; LDOS is a mid-cap deep-value stock; LMT is a mid-cap quality compounder stock; RTX is a large-cap quality compounder stock; NOC is a mid-cap quality compounder stock. LDOS, LMT, RTX, NOC pay a dividend while TDY 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.