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NOC vs RTX
Which Stock Would AI Choose? Northrop Grumman (NOC) vs. RTX (RTX) Stock Comparison
Key Takeaways
- Both NOC and RTX delivered Q1 earnings beats in recent weeks, yet experienced sharp declines amid a broader defense sector selloff.
- NOC trades at a lower P/E ratio (price-to-earnings) of 18.1 compared to RTX's 33.0, offering potential relative value.
- Year-to-date (YTD) returns show RTX slightly ahead at +3.9% versus NOC's +1.7%, though both lag one-year gains of 21% and 43%, respectively.
- Recent one-month performance reflects pressure, with NOC down 17% and RTX down 10%.
- Analyst price targets suggest upside: NOC to $719 (+24%) and RTX to $215 (+22%).
- RTX's larger market capitalization of $237 billion dwarfs NOC's $82 billion, reflecting broader scale.
Introduction
Northrop Grumman (NOC) and RTX (RTX) stand as pillars in the aerospace and defense sector, key players amid heightened geopolitical tensions and evolving U.S. military priorities. This comparison suits investors and traders eyeing defense stocks for their stability and growth potential driven by government contracts, missile systems, and space initiatives. With recent earnings highlights and sector headwinds, understanding their relative performance, valuations, and catalysts helps navigate current market dynamics effectively. Both firms benefit from robust backlogs but face scrutiny over budgets and execution risks.
NOC Overview and Recent Performance
Northrop Grumman Corporation (NOC) specializes in advanced aircraft, space systems, cyber solutions, and missile defense through segments like Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. In recent market activity, NOC shares traded around $578, within a 52-week range of $453 to $774. The stock snapped a streak of declines after Q1 earnings exceeded expectations, with EPS (earnings per share) of $6.14 versus $6.06 estimated and revenue of $9.88 billion. A $207 million contract win underscored demand, yet sentiment soured amid a 10-session sector drop linked to budget concerns and defense spending debates, driving a 17% one-month retreat. Analysts maintain a Buy consensus, citing B-21 bomber acceleration and a record backlog.
RTX Overview and Recent Performance
RTX Corporation (RTX), encompassing Collins Aerospace, Pratt & Whitney engines, and Raytheon missiles, delivers diversified exposure across commercial aviation, defense, and space. Shares hovered near $176 lately, spanning a 52-week low of $124 to high of $215. Recent weeks saw volatility post-Q1 results, featuring EPS of $1.78 beating $1.52 forecasts and $22 billion revenue, with raised 2026 guidance. Highlights included a missile-warning sensor delivery to Space Force and Pratt & Whitney supplier honors, but a sector selloff contributed to a roughly 10% monthly dip. Analyst targets point to growth from commercial aftermarket strength and defense contracts amid global conflicts.
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Head-to-Head Comparison
NOC emphasizes space and strategic systems, fostering a niche in high-margin government programs, while RTX balances defense with commercial engines for broader cyclical exposure. Growth drivers differ: NOC's Sentinel and B-21 programs promise steady backlogs, versus RTX's aftermarket surge and missile demand. Recent momentum favors neither, with both pressured by sector rotations away from defense amid fiscal debates. Risks include program delays for NOC and engine recalls for RTX. Sector overlap amplifies shared geopolitical tailwinds, but NOC's lower beta (0.05) signals stability over RTX's 0.43. Sentiment tilts positive on contracts, though recent pullbacks highlight valuation trade-offs.
Tickeron AI Verdict
Tickeron’s AI currently leans toward RTX, citing its diversified revenue, superior one-year returns, larger scale, and upward guidance revisions amid strong commercial and defense catalysts. While NOC offers compelling valuation, RTX's positioning suggests higher probability of outperformance in the near term, subject to market trends.
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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 StrongBuy.
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 undervalued. 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 whileRTX’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 5 TA indicator(s) are bullish while RTX’s TA Score has 5 bullish TA indicator(s).
- NOC’s TA Score: 5 bullish, 4 bearish.
- RTX’s TA Score: 5 bullish, 4 bearish.
Price Growth
NOC (@Aerospace & Defense) experienced а +1.09% price change this week, while RTX (@Aerospace & Defense) price change was +1.40% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was -1.16%. For the same industry, the average monthly price growth was +2.06%, and the average quarterly price growth was +17.36%.
Reported Earning Dates
NOC is expected to report earnings on Jul 23, 2026.
RTX is expected to report earnings on Jul 28, 2026.
Industries' Descriptions
@Aerospace & Defense (-1.16% 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.
| NOC | RTX | NOC / RTX | |
| Capitalization | 78.2B | 247B | 32% |
| EBITDA | 7.7B | 15.4B | 50% |
| Gain YTD | -2.751 | 0.821 | -335% |
| P/E Ratio | 17.25 | 34.43 | 50% |
| Revenue | 42.4B | 90.4B | 47% |
| Total Cash | 2.09B | 6.82B | 31% |
| Total Debt | 16.3B | 38.9B | 42% |
NOC | RTX | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 10 | 17 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 53 Fair valued | 49 Fair valued | |
PROFIT vs RISK RATING 1..100 | 53 | 16 | |
SMR RATING 1..100 | 34 | 67 | |
PRICE GROWTH RATING 1..100 | 60 | 51 | |
P/E GROWTH RATING 1..100 | 69 | 70 | |
SEASONALITY SCORE 1..100 | n/a | 65 |
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 (49) in the null industry is in the same range as NOC (53) 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 (16) in the null industry is somewhat better than the same rating for NOC (53) 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 (34) in the Aerospace And Defense industry is somewhat better than the same rating for RTX (67) in the null industry. This means that NOC’s stock grew somewhat faster than RTX’s over the last 12 months.
RTX's Price Growth Rating (51) 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.
NOC's P/E Growth Rating (69) in the Aerospace And Defense industry is in the same range as RTX (70) in the null industry. This means that NOC’s stock grew similarly to RTX’s over the last 12 months.
| NOC | RTX | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 64% | 7 days ago 58% |
| Stochastic ODDS (%) | 3 days ago 51% | 3 days ago 46% |
| Momentum ODDS (%) | 3 days ago 51% | 3 days ago 61% |
| MACD ODDS (%) | 3 days ago 52% | 5 days ago 59% |
| TrendWeek ODDS (%) | 3 days ago 57% | 3 days ago 63% |
| TrendMonth ODDS (%) | 3 days ago 36% | 3 days ago 61% |
| Advances ODDS (%) | 17 days ago 60% | 10 days ago 63% |
| Declines ODDS (%) | 7 days ago 47% | 12 days ago 45% |
| BollingerBands ODDS (%) | 3 days ago 69% | 3 days ago 50% |
| Aroon ODDS (%) | 3 days ago 32% | 3 days ago 37% |
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NOC and
Correlation & Price change
A.I.dvisor indicates that over the last year, NOC has been loosely correlated with LHX. These tickers have moved in lockstep 65% of the time. This A.I.-generated data suggests there is some statistical probability that if NOC jumps, then LHX 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 LHX. These tickers have moved in lockstep 61% of the time. This A.I.-generated data suggests there is some statistical probability that if RTX jumps, then LHX could also see price increases.