Analyzing Northrop Grumman (NYSE:NOC) & XTI Aerospace (NASDAQ:XTIA)

XTI Aerospace (NASDAQ:XTIA) and Northrop Grumman (NYSE:NOC) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Volatility & Risk

XTI Aerospace has a beta of 4.79, indicating that its share price is 379% more volatile than the S&P 500. Comparatively, Northrop Grumman has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500.

Institutional and Insider Ownership

11.7% of XTI Aerospace shares are held by institutional investors. Comparatively, 83.4% of Northrop Grumman shares are held by institutional investors. 7.4% of XTI Aerospace shares are held by company insiders. Comparatively, 0.2% of Northrop Grumman shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for XTI Aerospace and Northrop Grumman, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XTI Aerospace	1	0	0	1	2.50
Northrop Grumman	0	8	11	1	2.65

Northrop Grumman has a consensus target price of $655.30, indicating a potential upside of 14.75%. Given Northrop Grumman’s stronger consensus rating and higher possible upside, analysts plainly believe Northrop Grumman is more favorable than XTI Aerospace.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XTI Aerospace	-171.13%	-2,044.78%	-105.02%
Northrop Grumman	10.48%	24.25%	8.15%

Valuation & Earnings

This table compares XTI Aerospace and Northrop Grumman”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XTI Aerospace	$22.49 million	2.62	-$68.76 million	($5.20)	-0.29
Northrop Grumman	$41.95 billion	1.93	$4.18 billion	$31.48	18.14

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

Summary

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

About XTI Aerospace

XTI Aerospace, Inc. engages in the provision of aircraft manufacturing. It primarily focuses on the light and mid-size business aircraft market. The company was founded in April 1999 and is headquartered in Englewood, CO.

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.