Comparing Northrop Grumman Corporation (NOC) and American Science & Engineering (ASEI)

Northrop Grumman Corporation (NYSE: NOC) and American Science & Engineering (NASDAQ:ASEI) are both aerospace companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Earnings & Valuation

This table compares Northrop Grumman Corporation and American Science & Engineering’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Northrop Grumman Corporation $24.51 billion 2.11 $2.20 billion $13.42 22.12
American Science & Engineering N/A N/A N/A ($0.37) N/A

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Northrop Grumman Corporation and American Science & Engineering, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northrop Grumman Corporation 0 5 8 0 2.62
American Science & Engineering 0 0 0 0 N/A

Northrop Grumman Corporation presently has a consensus target price of $296.09, suggesting a potential downside of 0.26%.

Profitability

This table compares Northrop Grumman Corporation and American Science & Engineering’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northrop Grumman Corporation 9.24% 39.76% 8.94%
American Science & Engineering 0.19% 0.15% 0.13%

Insider & Institutional Ownership

81.7% of Northrop Grumman Corporation shares are owned by institutional investors. Comparatively, 72.9% of American Science & Engineering shares are owned by institutional investors. 0.7% of Northrop Grumman Corporation shares are owned by company insiders. Comparatively, 2.4% of American Science & Engineering shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Northrop Grumman Corporation pays an annual dividend of $4.00 per share and has a dividend yield of 1.3%. American Science & Engineering pays an annual dividend of $2.00 per share. Northrop Grumman Corporation pays out 29.8% of its earnings in the form of a dividend. American Science & Engineering pays out -540.5% 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. American Science & Engineering has increased its dividend for 9 consecutive years.

Summary

Northrop Grumman Corporation beats American Science & Engineering on 8 of the 11 factors compared between the two stocks.

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.

About American Science & Engineering

American Science and Engineering, Inc. (AS&E) is engaged in developing, manufacturing, marketing and selling X-ray inspection and other detection products. The Company manufactures X-ray inspection products that can be used to inspect parcels, baggage, vehicles, pallets, cargo containers and people. The Company offers its products for homeland security, force protection, public safety and other critical defense and security applications. The Company’s products and services are grouped into approximately five areas: cargo inspection systems, which include OmniView Gantry System, Z Portal System, Sentry Portal System, CarView System and ASE Connect; mobile cargo inspection systems, which include Z Backscatter Van; parcel and personnel screening inspection systems, which include Gemini System, SmartCheck System and MINI Z System; custom products, and service and support.

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