We find The Boeing Company to be extremely overvalued versus Northrop Grumman. Here are the factors we considered:
P/S Ratio
BA's P/S multiple of 2.4x is
substantially higher than the figure of 1.7x for NOC
Revenue Growth
Over the last twelve months, The Boeing Company has seen revenues change by -24% -
much lower than the figure of 8.7% for Northrop GrummanIn the twelve-month period before that, revenues for The Boeing Company had changed by -24.3% -
much lower than the 12.4% change for Northrop Grumman
Operating Margin
The Boeing Company's operating margin was -22% for the most recent twelve-month period, which is
much lower than Northrop Grumman's operating margin of 11.5%Over the last twelve months, the operating margin for The Boeing Company changed by -19.4 pp (percentage points) -
much worse than the change of 2.7 pp for Northrop GrummanIn the twelve-month period before that, the operating margin for The Boeing Company had changed by -14.4 pp -
notably worse than the change of -5.1 pp for Northrop Grumman over the same period
The Boeing Company Northrop Grumman Valuation: Current Market Cap $141 Bil $61 Bil Current P/S Multiple 2.4x 1.7xThe Boeing Company substantially higher Revenues: Total Revenue (LTM) $58 Bil $37 Bil LTM Revenue Growth (Current) -24% 8.7%The Boeing Company much lower LTM Revenue Growth (Year-ago) -24% 12%The Boeing Company much lower Operating Income/Margin: Operating Income (LTM) $-13 Bil $4.2 Bil Operating Margin (LTM) -22% 11%The Boeing Company much lower LTM Margin Change (Current) -19.4 pp 2.7 ppThe Boeing Company much worse LTM Margin Change (Year-ago) -14.4 pp -5.1 ppThe Boeing Company notably worse