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NOC vs RTX
Which Stock Would AI Choose? Northrop Grumman (NOC) vs. RTX Corporation (RTX) Stock Comparison
Key Takeaways
- Both NOC and RTX operate in the aerospace and defense sector, with recent contract wins supporting backlog growth amid elevated global defense spending.
- NOC reported a record $105 billion backlog in Q2 2026 and raised full-year sales guidance, though its shares have declined approximately 9-10% over the past month.
- RTX maintains a larger $289 billion backlog, posted double-digit organic sales growth in recent quarters, and expanded manufacturing capacity, while its stock fell about 11% in the past month.
- Relative performance shows RTX with stronger year-to-date and one-year returns compared to NOC, reflecting differences in business mix and momentum.
- Both stocks face similar sector risks, including contract execution, supply chain pressures, and sensitivity to U.S. government budget cycles, with recent market activity indicating sector-wide volatility.
- Valuation metrics differ notably, with NOC trading at a lower price-to-earnings ratio than RTX, highlighting trade-offs in growth expectations and stability.
Introduction
Northrop Grumman Corporation (NOC) and RTX Corporation (RTX) are two prominent players in the aerospace and defense industry, making them natural subjects for comparison amid ongoing geopolitical tensions and defense budget priorities. This analysis examines their business models, recent performance, and market positioning to assist institutional investors, active traders, and portfolio managers evaluating sector exposure. The comparison draws on verifiable developments from recent weeks, including contract awards and earnings updates, to highlight relative strengths without favoring either security.
NOC Overview and Recent Performance
Northrop Grumman Corporation (NOC) specializes in autonomous systems, space, aeronautics, and missile defense technologies, serving primarily U.S. government customers. In recent market activity, the stock has experienced downward pressure, declining around 9-10% over the past month amid broader sector movements. Key influences include multiple contract announcements, such as a $4.8 billion U.S. Army award for an anti-missile system and a $508.5 million Missile Defense Agency contract, which contributed to a record $105 billion backlog reported in Q2 2026. The company raised its 2026 sales guidance to $43.75–$44.25 billion, reflecting sustained demand, though operating income faced some year-over-year comparisons due to prior divestitures. Sentiment has been supported by these backlog milestones while tempered by overall market volatility in defense equities.
RTX Overview and Recent Performance
RTX Corporation (RTX) operates across Collins Aerospace, Pratt & Whitney, and Raytheon segments, providing commercial and military aircraft systems, engines, and defense electronics. Recent market activity has seen its shares decline approximately 11% over the past month, consistent with sector trends. Positive developments include a $289 billion backlog and manufacturing expansions, such as a $50 million facility upgrade for electronic warfare systems and investments in Poland to boost engine production capacity. Q2 2026 results showed 14% sales growth and raised full-year guidance, driven by strong demand in both commercial aerospace and defense. These factors have supported relative resilience in longer-term returns compared to some peers, though short-term price action reflects ongoing market adjustments.
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Head-to-Head Comparison
In business model terms, NOC maintains a heavier emphasis on large-scale government programs such as missile defense and space systems, while RTX benefits from a more diversified mix including commercial aerospace engines and aftermarket services. Growth drivers for both center on defense contract awards, yet RTX has demonstrated stronger recent organic sales momentum. Recent momentum favors RTX on a year-to-date basis, though both have seen pullbacks in recent weeks. Risk factors include execution on complex programs and exposure to federal spending; NOC carries higher debt relative to equity in some metrics. Sector exposure remains comparable within aerospace and defense, with market sentiment reflecting cautious optimism tied to backlog visibility rather than broad equity trends.
Tickeron AI Verdict
Based on observable factors such as backlog consistency, recent contract flow, and relative price stability over broader periods, Tickeron’s AI would currently assign a modestly higher probabilistic preference to RTX. Its larger absolute backlog and balanced commercial-defense exposure may support more consistent positioning amid sector volatility, though NOC’s specialized program wins provide meaningful offsets. This assessment remains probabilistic and tied to prevailing data trends rather than forward guarantees.
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 Buy and RTX is a Buy.
NOC | RTX | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 79 | 22 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 60 Fair valued | 59 Fair valued | |
PROFIT vs RISK RATING 1..100 | 60 | 11 | |
SMR RATING 1..100 | 36 | 64 | |
PRICE GROWTH RATING 1..100 | 61 | 55 | |
P/E GROWTH RATING 1..100 | 70 | 46 | |
SEASONALITY SCORE 1..100 | 85 | 50 |
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.
RTX's Valuation (59) in the null industry is in the same range as NOC (60) in the Aerospace And Defense industry. This means that RTX’s stock grew similarly to NOC’s over the last 12 months.
RTX's Profit vs Risk Rating (11) in the null industry is somewhat better than the same rating for NOC (60) 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 (55) in the null industry is in the same range as NOC (61) 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 (46) in the null industry is in the same range as NOC (70) 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 (%) | 2 days ago 63% | 2 days ago 68% |
| Stochastic ODDS (%) | 2 days ago 57% | 2 days ago 62% |
| Momentum ODDS (%) | 2 days ago 55% | 6 days ago 46% |
| MACD ODDS (%) | 2 days ago 64% | N/A |
| TrendWeek ODDS (%) | 2 days ago 49% | 2 days ago 44% |
| TrendMonth ODDS (%) | 2 days ago 42% | 2 days ago 46% |
| Advances ODDS (%) | 12 days ago 61% | 6 days ago 66% |
| Declines ODDS (%) | 5 days ago 49% | 13 days ago 42% |
| BollingerBands ODDS (%) | 2 days ago 73% | 2 days ago 65% |
| Aroon ODDS (%) | 2 days ago 46% | 2 days ago 36% |
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, 6 bearish.
- RTX’s TA Score: 4 bullish, 5 bearish.
Price Growth
NOC (@Aerospace & Defense) experienced а -3.20% price change this week, while RTX (@Aerospace & Defense) price change was -2.37% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was +0.78%. For the same industry, the average monthly price growth was -8.70%, and the average quarterly price growth was -2.31%.
Reported Earning Dates
NOC is expected to report earnings on Oct 20, 2026.
RTX is expected to report earnings on Oct 27, 2026.
Industries' Descriptions
@Aerospace & Defense (+0.78% 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 71% 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 loosely correlated with NOC. These tickers have moved in lockstep 66% of the time. This A.I.-generated data suggests there is some statistical probability that if RTX jumps, then NOC could also see price increases.