Critical Contrast: Northrop Grumman (NOC) versus Telenav (TNAV)

Northrop Grumman (NYSE: NOC) and Telenav (NASDAQ:TNAV) are both aerospace companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Earnings & Valuation

This table compares Northrop Grumman and Telenav’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northrop Grumman $25.80 billion 2.19 $2.02 billion $13.28 24.44
Telenav $169.58 million 1.41 -$47.26 million ($1.09) -4.91

Northrop Grumman has higher revenue and earnings than Telenav. Telenav is trading at a lower price-to-earnings ratio than Northrop Grumman, indicating that it is currently the more affordable of the two stocks.

Dividends

Northrop Grumman pays an annual dividend of $4.40 per share and has a dividend yield of 1.4%. Telenav does not pay a dividend. Northrop Grumman pays out 33.1% of its earnings in the form of a dividend. Northrop Grumman has increased its dividend for 10 consecutive years.

Insider and Institutional Ownership

80.3% of Northrop Grumman shares are owned by institutional investors. Comparatively, 52.9% of Telenav shares are owned by institutional investors. 0.6% of Northrop Grumman shares are owned by company insiders. Comparatively, 24.7% of Telenav shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Northrop Grumman and Telenav’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northrop Grumman 8.05% 35.83% 7.97%
Telenav -58.01% -83.65% -25.82%

Analyst Recommendations

This is a summary of recent recommendations for Northrop Grumman and Telenav, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northrop Grumman 0 5 12 0 2.71
Telenav 0 0 4 0 3.00

Northrop Grumman presently has a consensus price target of $361.31, suggesting a potential upside of 11.34%. Telenav has a consensus price target of $10.88, suggesting a potential upside of 103.27%. Given Telenav’s stronger consensus rating and higher probable upside, analysts plainly believe Telenav is more favorable than Northrop Grumman.

Risk and Volatility

Northrop Grumman has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Telenav has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Summary

Northrop Grumman beats Telenav on 12 of the 17 factors compared between the two stocks.

About Northrop Grumman

Northrop Grumman Corporation operates as a security company for government and commercial customers worldwide. It 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 operates through three segments: Aerospace Systems, Mission Systems, and Technology Services. The Aerospace Systems segment designs, develops, integrates, and produces manned aircraft, autonomous systems, spacecraft, high-energy laser systems, microelectronics, and other systems/subsystems. This segment sells its products primarily to the Department of Defense (DoD) and other U.S. government agencies for use in various areas, including intelligence, surveillance, and reconnaissance; strike operations; communications; earth observation; and space science and exploration. The Mission Systems segment offers mission solutions and multifunction systems, including C4ISR systems; radar, electro-optical/infrared, and acoustic sensors; electronic warfare systems; cyber solutions; space systems; intelligence processing systems; air and missile defense integration; navigation; and shipboard missile and encapsulated payload launch systems for the DoD, intelligence community, international, federal-civil, and commercial customers. The Technology Services segment provides software and system sustainment, training, and integrated logistics support solutions, as well as engages in the modernization of platforms and associated subsystems. Northrop Grumman Corporation was founded in 1939 and is based in Falls Church, Virginia.

About Telenav

Telenav, Inc., together with its subsidiaries provides connected car and location-based platform services in the United States and internationally. The company operates through three segments: Automotive, Advertising, and Mobile Navigation. It offers automotive navigation services, including on-board solutions, which consist of software, map, and points of interest data loaded in vehicles that provide voice-guided turn by turn navigation displayed on the vehicle screen; and mobile phone-based wireless connectivity and brought-in navigation services. The company also provides display and location-based advertising services; and voice-guided, real-time, turn by turn, and mobile navigation services under various brand names, including Scout GPS Navigation, as well as under wireless carrier brands. Its customers include wireless carriers, automobile manufacturers, original equipment manufacturers, advertisers, advertising agencies, and end users. The company distributes its services primarily through wireless carrier partners. Telenav, Inc. is headquartered in Santa Clara, California.

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