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NOC vs RTX
Which Stock Would AI Choose? Northrop Grumman (NOC) vs. RTX Corporation (RTX) Stock Comparison
Key Takeaways
- Different business models: NOC is a pure-play defense contractor, while RTX spans both commercial aerospace and defense.
- Scale gap: RTX carries a market capitalization roughly three times larger than NOC, with a record $268 billion backlog versus NOC's $95.7 billion.
- Growth profile: RTX reported double-digit organic revenue growth in recent quarters, while NOC posted mid-single-digit growth with strong free cash flow expansion.
- Catalysts differ: NOC's outlook hinges on B-21 bomber and missile-defense programs, whereas RTX is driven by commercial aftermarket demand and munitions replenishment.
- Risk exposure: NOC is more sensitive to U.S. defense budget timing, while RTX faces commercial aerospace supply-chain and engine-durability risks.
Introduction
Investors comparing NOC and RTX are evaluating two of America's most prominent aerospace and defense franchises with sharply different risk-and-reward profiles. Northrop Grumman is a focused prime contractor for advanced military platforms, while RTX Corporation, formed from the merger of United Technologies' aerospace businesses and Raytheon, operates across both defense and commercial aviation. This stock comparison is most relevant for investors weighing concentrated defense exposure against a diversified aerospace portfolio, and for traders tracking relative performance and market positioning during a period of elevated global defense spending and resilient air travel.
NOC Overview and Recent Performance
Northrop Grumman (NOC) is a leading U.S. defense prime with operations spanning aeronautics, mission systems, space systems, and defense systems. Recent market activity has reflected investor optimism around the company's core programs, including the B-21 Raider stealth bomber, the Sentinel intercontinental ballistic missile program, and solid rocket motor production. In its most recent quarterly report, the company posted revenue of $11.7 billion, up 9.6% year over year, while adjusted earnings per share (EPS) and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) both exceeded analyst expectations. Management reported a record backlog of roughly $95.7 billion and a book-to-bill ratio above 1.0, indicating that new orders are outpacing revenue. Sentiment has been supported by strong free cash flow growth and international demand for air and missile defense, though the timing of certain U.S. contract awards remains a watch item.
RTX Overview and Recent Performance
RTX Corporation (RTX) operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon, serving both commercial aerospace and defense customers. Recent performance has been marked by broad-based momentum, with quarterly revenue of $24.2 billion rising 12.1% year over year and adjusted EPS beating consensus estimates. The company reported a record $268 billion backlog, up 23% year over year, supported by strong commercial engine orders and substantial defense awards such as Patriot air and missile defense systems and munitions contracts. Organic sales growth reached 14% in the latest quarter, driven by double-digit gains in commercial original equipment and aftermarket revenue. Investor sentiment has improved alongside record order intake and a significant step-up in free cash flow, while management has emphasized margin expansion and production capacity investments as the next phase of the story.
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Head-to-Head Comparison
The clearest contrast between NOC and RTX lies in diversification. NOC is a focused defense prime whose relative performance is closely tied to U.S. national-security priorities, such as nuclear modernization and next-generation aircraft. RTX blends defense with commercial aerospace, meaning its market positioning benefits from both rising defense budgets and the recovery in global air travel, but also exposes it to engine durability issues and commercial supply-chain constraints. On growth drivers, NOC's backlog growth is steadier and more concentrated, while RTX has demonstrated faster organic revenue expansion and a higher book-to-bill ratio. Risk factors also diverge: NOC faces contract-award timing risk in programs like the B-21, whereas RTX must manage Pratt & Whitney's GTF engine fleet challenges and tariff-related cost pressures at Collins. In terms of scale, RTX's revenue base and backlog are several times larger, providing a different profile of stability versus concentration.
Tickeron AI Verdict
Based on observable factors such as trend consistency, backlog momentum, and the breadth of catalysts, Tickeron's AI would likely lean toward RTX in the current environment. The company's combination of record order intake, double-digit organic growth, and a diversified revenue base across defense and commercial aerospace offers a broader set of drivers than NOC's more concentrated, budget-sensitive portfolio. That said, NOC's exceptional free cash flow expansion and alignment with high-priority national defense programs keep it a strong contender, particularly for investors favoring pure-play defense exposure. The AI's preference is probabilistic rather than definitive, reflecting relative positioning across trend strength, stability, and near-term catalysts rather than any certainty about future price direction.
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 NOC is a Hold and RTX is a Hold.
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).
RTX in +4.00% Uptrend, growing for three consecutive days on October 16, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where RTX advanced for three days, in 226 of 345 cases, the price rose further within the following month. The odds of a continued upward trend are 66%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where RTX's RSI Indicator exited the oversold zone, 13 of 21 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 62%.
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on RTX as a result. In 55 of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 64%.
The Moving Average Convergence Divergence (MACD) for RTX just turned positive on October 09, 2026. Looking at past instances where RTX's MACD turned positive, the stock continued to rise in 30 of 50 cases over the following month. The odds of a continued upward trend are 60%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where RTX 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 44%.
RTX 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 RTX 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 12 (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 43 (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 Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. RTX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 64 (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 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 (3.937) is normal, around the industry mean (4.941). P/E Ratio (33.725) is within average values for comparable stocks, (17.156). Projected Growth (PEG Ratio) (2.176) is also within normal values, averaging (2.564). Dividend Yield (0.015) settles around the average of (0.061) among similar stocks. P/S Ratio (2.868) is also within normal values, averaging (18.330).
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued 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.
NOC | RTX | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 64 | 27 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 74 Overvalued | 74 Overvalued | |
PROFIT vs RISK RATING 1..100 | 59 | 12 | |
SMR RATING 1..100 | 36 | 64 | |
PRICE GROWTH RATING 1..100 | 59 | 47 | |
P/E GROWTH RATING 1..100 | 73 | 43 | |
SEASONALITY SCORE 1..100 | 90 | 75 |
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.
NOC's Valuation (74) in the Aerospace And Defense industry is in the same range as RTX (74) in the null industry. This means that NOC’s stock grew similarly to RTX’s over the last 12 months.
RTX's Profit vs Risk Rating (12) in the null industry is somewhat better than the same rating for NOC (59) in the Aerospace And Defense industry. This means that RTX’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 RTX (64) in the null industry. This means that NOC’s stock grew similarly to RTX’s over the last 12 months.
RTX's Price Growth Rating (47) in the null industry is in the same range as NOC (59) in the Aerospace And Defense industry. This means that RTX’s stock grew similarly to NOC’s over the last 12 months.
RTX's P/E Growth Rating (43) in the null industry is in the same range as NOC (73) in the Aerospace And Defense industry. This means that RTX’s stock grew similarly to NOC’s over the last 12 months.
| NOC | RTX | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 61% | 4 days ago 62% |
| Stochastic ODDS (%) | 4 days ago 59% | 4 days ago 51% |
| Momentum ODDS (%) | 4 days ago 56% | 4 days ago 64% |
| MACD ODDS (%) | 4 days ago 58% | 4 days ago 60% |
| TrendWeek ODDS (%) | 4 days ago 58% | 4 days ago 65% |
| TrendMonth ODDS (%) | 4 days ago 44% | 4 days ago 47% |
| Advances ODDS (%) | 4 days ago 60% | 4 days ago 66% |
| Declines ODDS (%) | 15 days ago 49% | 13 days ago 44% |
| BollingerBands ODDS (%) | 4 days ago 55% | 4 days ago 40% |
| Aroon ODDS (%) | 4 days ago 46% | 4 days ago 35% |
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).
NOC’s FA Score shows that 0 FA rating(s) are green while RTX’s FA Score has 1 green FA rating(s).
- NOC’s FA Score: 0 green, 5 red.
- RTX’s FA Score: 1 green, 4 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.
NOC’s TA Score shows that 4 TA indicator(s) are bullish while RTX’s TA Score has 4 bullish TA indicator(s).
- NOC’s TA Score: 4 bullish, 4 bearish.
- RTX’s TA Score: 4 bullish, 4 bearish.
Price Growth
NOC (@Aerospace & Defense) experienced а +8.14% price change this week, while RTX (@Aerospace & Defense) price change was +4.27% 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
NOC is expected to report earnings on Oct 20, 2026.
RTX 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.
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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.
RTX and
Correlation & Price change
A.I.dvisor indicates that over the last year, RTX has been closely correlated with NOC. These tickers have moved in lockstep 66% of the time. This A.I.-generated data suggests there is a high statistical probability that if RTX jumps, then NOC could also see price increases.