Advertisement
GD vs NOC
Which Stock Would AI Choose? General Dynamics (GD) vs. Northrop Grumman (NOC) Stock Comparison
Key Takeaways
- GD delivered full-year 2025 diluted EPS of $15.45 (up 13.4%) on revenue of $52.6 billion (up 10.1%), reflecting broad-based growth across all four segments.
- NOC grew full-year 2025 revenue about 2% to roughly $42 billion, with diluted EPS of $29.08 and a sharp fourth-quarter acceleration in free cash flow.
- Both companies closed 2025 with record backlogs: GD at approximately $118 billion (up 30%) and NOC at roughly $95.7 billion (up 4.6%).
- GD carries meaningful commercial exposure through its Gulfstream business-jet franchise, while NOC is a more concentrated defense prime focused on space, missile defense, and the B-21 bomber.
- Margin pressures from tariffs and supply-chain constraints weigh on GD, while cautious near-term guidance and program-award timing shape the outlook for NOC.
Introduction
General Dynamics and Northrop Grumman are two of the largest U.S. aerospace and defense contractors, yet they occupy distinct positions within the sector. GD blends defense programs with a substantial commercial aviation business, while NOC is a more singular play on advanced defense technology. This stock comparison examines their relative performance, growth drivers, and market positioning to help traders and investors decide which profile better fits the current environment. With both companies reporting record backlogs amid elevated global defense demand, the comparison is especially relevant for those seeking exposure to the sector but weighing diversification against focus.
GD Overview and Recent Performance
General Dynamics operates across four segments: Aerospace (Gulfstream business jets), Marine Systems (nuclear submarines and naval ships), Combat Systems (land vehicles, weapons, and munitions), and Technologies (defense IT and cybersecurity). In recent market activity, the company has posted solid revenue and earnings growth, driven in particular by strength in Marine Systems and surging international demand for combat vehicles and munitions.
Recent quarters have been defined by exceptional order intake. GD reported a full-year 2025 book-to-bill ratio (orders divided by revenue) of 1.5-to-1, pushing total estimated contract value to roughly $179 billion. However, sentiment has been tempered by margin headwinds, including tariff impacts in Aerospace and persistent supply-chain bottlenecks. Analysts have remained broadly constructive, with at least one major firm recently upgrading the shares and raising its price target, though the market has at times reacted cautiously to concerns about how quickly record backlog converts into profitable revenue.
NOC Overview and Recent Performance
Northrop Grumman is a leading pure-play defense and aerospace prime, with its business concentrated in Aeronautics, Defense Systems, Mission Systems, and Space Systems. Its portfolio centers on advanced platforms such as the B-21 bomber, missile and air-defense systems, solid rocket motors, and space-based capabilities. Recent market activity has shown steady operational execution, with double-digit fourth-quarter revenue growth and a significant year-over-year jump in free cash flow.
The company ended 2025 with a record backlog of roughly $95.7 billion and cited strong international demand for air and missile defense. Sentiment around NOC reflects a balance between durable, well-funded programs and near-term uncertainty over the timing of major contract awards. Management's 2026 earnings guidance came in modestly below consensus expectations, contributing to a more measured outlook even as several brokers maintain Buy ratings and elevated price targets built around B-21 production acceleration and international growth.
Trending AI Robots
For traders seeking a systematic edge in names like these, Tickeron's Trending AI Robots page offers a curated view of the platform's most relevant automated strategies. Tickeron hosts hundreds of AI Trading Bots that collectively trade thousands of different tickers, but only a select group — those best suited to prevailing market conditions — earns a place in the Trending AI Robots section. These bots vary widely by trading style, strategy, timeframe, performance history, and the specific set of tickers they follow, allowing users to evaluate statistics and results before choosing an approach. Explore the Trending AI Robots to see which strategies are currently positioned for the aerospace and defense sector.
Head-to-Head Comparison
The clearest contrast between the two companies is diversification versus focus. GD derives a meaningful portion of its revenue from the commercial Gulfstream business, giving it exposure to economic cycles and tariffs that pure defense names largely avoid. NOC, by contrast, is almost entirely tied to government and allied defense budgets, which can provide more predictable demand but also concentrates risk in program-award timing and fixed-price execution.
On growth, GD has recently posted faster top-line expansion, driven by its Marine and Combat Systems backlog, while NOC is growing more modestly but improving profitability and free-cash-flow generation. Sector exposure also differs: NOC is more leveraged to space, missile defense, and strategic bombers, whereas GD skews toward naval shipbuilding and land systems. Both face similar sector-wide risks, including supply-chain constraints and government funding uncertainty.
Tickeron AI Verdict
Based on observable factors such as trend consistency, stability, catalysts, and relative positioning, Tickeron's AI would likely view both names constructively but could favor GD for its stronger recent revenue momentum and record, faster-growing backlog, while acknowledging that its commercial-aviation and tariff exposure introduces additional variability. Conversely, NOC offers a more focused defense profile with improving cash generation and notable catalysts in B-21 acceleration, though its conservative near-term guidance may temper near-term momentum signals. The outcome is probabilistic rather than definitive, and the appropriate choice depends on an investor's preference for diversification versus concentrated defense exposure.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is GD is a Hold and NOC is a Hold.
GD's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for GD turned positive on October 09, 2026. Looking at past instances where GD's MACD turned positive, the stock continued to rise in 35 of 60 cases over the following month. The odds of a continued upward trend are 58%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where GD's RSI Indicator exited the oversold zone, 11 of 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 42%.
The Momentum Indicator moved above the 0 level on October 12, 2026. You may want to consider a long position or call options on GD as a result. In 58 of 102 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 57%.
Following a +2.86% 3-day Advance, the price is estimated to grow further. Considering data from situations where GD advanced for three days, in 140 of 324 cases, the price rose further within the following month. The odds of a continued upward trend are 43%.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GD declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 38%.
GD broke above its upper Bollinger Band on October 16, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for GD entered a downward trend on October 16, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 14 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 50 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 50 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 56 (best 1 - 100 worst), indicating steady price growth. GD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 67 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.472) is normal, around the industry mean (4.941). P/E Ratio (20.699) is within average values for comparable stocks, (17.156). Projected Growth (PEG Ratio) (2.065) is also within normal values, averaging (2.564). Dividend Yield (0.018) settles around the average of (0.061) among similar stocks. P/S Ratio (1.796) is also within normal values, averaging (18.330).
NOC's RSI Oscillator recovers from oversold territory
The RSI Indicator for NOC moved out of oversold territory on October 08, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 31 similar instances when the indicator left oversold territory. In 19 of the 31 cases the stock moved higher. This puts the odds of a move higher at 61%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on NOC as a result. In 40 of 72 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 56%.
The Moving Average Convergence Divergence (MACD) for NOC just turned positive on October 14, 2026. Looking at past instances where NOC's MACD turned positive, the stock continued to rise in 26 of 45 cases over the following month. The odds of a continued upward trend are 58%.
Following a +4.88% 3-day Advance, the price is estimated to grow further. Considering data from situations where NOC advanced for three days, in 196 of 327 cases, the price rose further within the following month. The odds of a continued upward trend are 60%.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NOC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 49%.
NOC broke above its upper Bollinger Band on October 16, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for NOC entered a downward trend on October 13, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 36 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 59 (best 1 - 100 worst), indicating steady price growth. NOC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 59 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is 73 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 74 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.130) is normal, around the industry mean (4.941). P/E Ratio (16.493) is within average values for comparable stocks, (17.156). Projected Growth (PEG Ratio) (3.350) is also within normal values, averaging (2.564). Dividend Yield (0.019) settles around the average of (0.061) among similar stocks. P/S Ratio (1.766) is also within normal values, averaging (18.330).
GD | NOC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 13 | 64 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 67 Overvalued | 74 Overvalued | |
PROFIT vs RISK RATING 1..100 | 14 | 59 | |
SMR RATING 1..100 | 50 | 36 | |
PRICE GROWTH RATING 1..100 | 56 | 59 | |
P/E GROWTH RATING 1..100 | 50 | 73 | |
SEASONALITY SCORE 1..100 | 50 | 90 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
GD's Valuation (67) in the Aerospace And Defense industry is in the same range as NOC (74). This means that GD’s stock grew similarly to NOC’s over the last 12 months.
GD's Profit vs Risk Rating (14) in the Aerospace And Defense industry is somewhat better than the same rating for NOC (59). This means that GD’s stock grew somewhat faster than NOC’s over the last 12 months.
NOC's SMR Rating (36) in the Aerospace And Defense industry is in the same range as GD (50). This means that NOC’s stock grew similarly to GD’s over the last 12 months.
GD's Price Growth Rating (56) in the Aerospace And Defense industry is in the same range as NOC (59). This means that GD’s stock grew similarly to NOC’s over the last 12 months.
GD's P/E Growth Rating (50) in the Aerospace And Defense industry is in the same range as NOC (73). This means that GD’s stock grew similarly to NOC’s over the last 12 months.
| GD | NOC | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 42% | 4 days ago 61% |
| Stochastic ODDS (%) | 4 days ago 39% | 4 days ago 59% |
| Momentum ODDS (%) | 4 days ago 57% | 4 days ago 56% |
| MACD ODDS (%) | 4 days ago 58% | 4 days ago 58% |
| TrendWeek ODDS (%) | 4 days ago 47% | 4 days ago 58% |
| TrendMonth ODDS (%) | 4 days ago 51% | 4 days ago 44% |
| Advances ODDS (%) | 4 days ago 43% | 4 days ago 60% |
| Declines ODDS (%) | 13 days ago 38% | 15 days ago 49% |
| BollingerBands ODDS (%) | 4 days ago 33% | 4 days ago 55% |
| Aroon ODDS (%) | 4 days ago 38% | 4 days ago 46% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
GD’s FA Score shows that 1 FA rating(s) are green while NOC’s FA Score has 0 green FA rating(s).
- GD’s FA Score: 1 green, 4 red.
- NOC’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
GD’s TA Score shows that 4 TA indicator(s) are bullish while NOC’s TA Score has 4 bullish TA indicator(s).
- GD’s TA Score: 4 bullish, 4 bearish.
- NOC’s TA Score: 4 bullish, 4 bearish.
Price Growth
GD (@Aerospace & Defense) experienced а +3.91% price change this week, while NOC (@Aerospace & Defense) price change was +8.14% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was -4.71%. For the same industry, the average monthly price growth was -13.62%, and the average quarterly price growth was -19.39%.
Reported Earning Dates
GD is expected to report earnings on Oct 30, 2026.
NOC is expected to report earnings on Oct 20, 2026.
Industries' Descriptions
@Aerospace & Defense (-4.71% weekly)Aerospace & Defense is one of largest industries in the U.S., mainly comprising the following areas: commercial airliners, military aircraft, missiles, space, and general aviation. Focused heavily on research & development, it is also one of the fastest growing industries. Military aircraft has the largest market share in the industry’s sales, followed by space systems, civil aircraft, and missiles. Aerospace exports, directly and indirectly, support more jobs than the export of any other commodity, according to a study by the U.S. Department of Commerce. Boeing Company, Lockheed Martin Corporation and General Electric Company are some of the most prominent players in this space.
Advertisement
GD and
Correlation & Price change
A.I.dvisor indicates that over the last year, GD has been loosely correlated with LHX. These tickers have moved in lockstep 60% of the time. This A.I.-generated data suggests there is some statistical probability that if GD jumps, then LHX could also see price increases.
NOC and
Correlation & Price change
A.I.dvisor indicates that over the last year, NOC has been closely correlated with LMT. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if NOC jumps, then LMT could also see price increases.