Analyzing EVE (NYSE:EVEX) and Northrop Grumman (NYSE:NOC)

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

Analyst Recommendations

This is a summary of recent ratings and price targets for EVE and Northrop Grumman, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EVE	1	3	4	0	2.38
Northrop Grumman	0	6	12	2	2.80

EVE currently has a consensus price target of $6.47, suggesting a potential upside of 28.97%. Northrop Grumman has a consensus price target of $646.94, suggesting a potential upside of 17.01%. Given EVE’s higher probable upside, research analysts clearly believe EVE is more favorable than Northrop Grumman.

Risk and Volatility

EVE has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Northrop Grumman has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500.

Valuation & Earnings

This table compares EVE and Northrop Grumman”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EVE	N/A	N/A	-$138.17 million	($0.65)	-7.72
Northrop Grumman	$41.03 billion	1.92	$4.17 billion	$27.80	19.89

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EVE	N/A	-203.37%	-61.11%
Northrop Grumman	9.82%	25.49%	8.01%

Insider and Institutional Ownership

1.3% of EVE shares are owned by institutional investors. Comparatively, 83.4% of Northrop Grumman shares are owned by institutional investors. 0.3% of EVE shares are owned by insiders. Comparatively, 0.2% of Northrop Grumman shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Northrop Grumman beats EVE on 11 of the 14 factors compared between the two stocks.

About EVE

Eve Holding, Inc. is a special purpose acquisition company focused on the aviation sector. The company was founded on 7th August, 2020 and is headquartered in Melbourne, FL.

About Northrop Grumman

Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. The company’s Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic ISR systems and vertical take-off and landing tactical ISR systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems. Its Defense Systems segment designs, develops, integrates, and produces tactical weapons and missile defense solutions, and provides sustainment, modernization, and training services for manned and unmanned aircraft and electronics systems. It also offers integrated, all-domain command, and control battle management systems, precision strike weapons; high speed air-breathing and hypersonic systems; high-performance gun systems, ammunition, precision munitions and advanced fuzes; aircraft and mission systems logistics support, sustainment, operations and modernization; and warfighter training services. The company’s Mission Systems segment offers command, control, communications and computers, intelligence, surveillance, and reconnaissance systems; radar, electro-optical/infrared and acoustic sensors; electronic warfare systems; advanced communications and network systems; cyber solutions; intelligence processing systems; navigation; and maritime power, propulsion, and payload launch systems. Its Space Systems segment offers satellites, spacecraft systems, subsystems, sensors, and payloads; ground systems; missile defense systems and interceptors; launch vehicles and related propulsion systems; and strategic missiles. Northrop Grumman Corporation was founded in 1939 and is based in Falls Church, Virginia.