BWX Technologies (NYSE: BWXT) and Northrop Grumman Corporation (NYSE:NOC) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.
Volatility & Risk
BWX Technologies has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Northrop Grumman Corporation has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.
Earnings and Valuation
This table compares BWX Technologies and Northrop Grumman Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|BWX Technologies||$1.62 billion||3.30||$322.78 million||$1.89||28.44|
|Northrop Grumman Corporation||$25.19 billion||1.86||$3.80 billion||$13.09||20.57|
Northrop Grumman Corporation has higher revenue and earnings than BWX Technologies. Northrop Grumman Corporation is trading at a lower price-to-earnings ratio than BWX Technologies, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for BWX Technologies and Northrop Grumman Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Northrop Grumman Corporation||0||7||7||0||2.50|
BWX Technologies currently has a consensus price target of $51.40, indicating a potential downside of 4.37%. Northrop Grumman Corporation has a consensus price target of $259.67, indicating a potential downside of 3.57%. Given Northrop Grumman Corporation’s higher probable upside, analysts plainly believe Northrop Grumman Corporation is more favorable than BWX Technologies.
BWX Technologies pays an annual dividend of $0.44 per share and has a dividend yield of 0.8%. Northrop Grumman Corporation pays an annual dividend of $4.00 per share and has a dividend yield of 1.5%. BWX Technologies pays out 23.3% of its earnings in the form of a dividend. Northrop Grumman Corporation pays out 30.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BWX Technologies has raised its dividend for 9 consecutive years.
Insider & Institutional Ownership
95.4% of BWX Technologies shares are held by institutional investors. Comparatively, 82.1% of Northrop Grumman Corporation shares are held by institutional investors. 0.8% of BWX Technologies shares are held by insiders. Comparatively, 0.7% of Northrop Grumman Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares BWX Technologies and Northrop Grumman Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Northrop Grumman Corporation||9.20%||39.22%||8.74%|
BWX Technologies beats Northrop Grumman Corporation on 10 of the 17 factors compared between the two stocks.
About BWX Technologies
BWX Technologies, Inc. is a manufacturer of nuclear components and a service provider. The Company’s businesses focus on the design, engineering and manufacture of precision naval nuclear components, reactors and nuclear fuel for the United States Government. Its segments include Nuclear Operations, Technical Services, Nuclear Energy and Other. It provides uranium processing and environmental site restoration services, as well as a range of products and services to customers in the nuclear power industry. Nuclear Operations engineers, designs and manufactures precision naval nuclear components and reactors for the United States Department of Energy/National Nuclear Security Administration’s Naval Nuclear Propulsion Program. Technical Services provides various services to the United States Government. Nuclear Energy designs, licenses, manufactures and delivers commercial nuclear steam generators, pressure vessels, reactor components, heat exchangers and other auxiliary equipment.
About Northrop Grumman Corporation
Northrop Grumman Corporation is a global security company. The Company provides products, systems and solutions in autonomous systems; cyber; command, control, communications and computers, intelligence, surveillance and reconnaissance (C4ISR); strike, and logistics and modernization. The Company’s segments include Aerospace Systems, Mission Systems and Technology Services. The Company’s Aerospace Systems segment is engaged in the design, development, integration and production of manned aircraft, autonomous systems, spacecraft, high-energy laser systems, microelectronics and other systems/subsystems. The Mission Systems segment offers mission solutions and multifunction systems for Department of Defense (DoD), intelligence community, international, federal civil and commercial customers. The Technology Services segment provides logistics solutions supporting the full life cycle of platforms and systems for global defense and federal-civil customers.
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