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Northrop Grumman vs TransDigm Group: Which Stock Looks Stronger in 2026?

Northrop Grumman holds the cleaner structural position, with growth as the main driver and profitability adding further support. TransDigm still has the edge on profitability, which keeps the comparison from looking entirely one-sided. On the market side, Northrop Grumman is in better shape — its trend is intact while TransDigm's trend has broken down. That puts structure and market broadly in agreement — Northrop Grumman's lead looks more confirmed than conflicted.

The comparison is based on similar long-term financial trajectories, not sector labels.

Updated 2026-04-05

The lead is spread across growth and stability, rather than sitting in one isolated gap. The overall score gap is 9 points in favour of Northrop Grumman Corporation.

INDUSTRY COMPARISON

Both operate in: Aerospace & Defense

This comparison is based on industry proximity, not on functional trajectory similarity. NOC and TDG share the same industry classification.

For a similarity-based comparison, see how Northrop Grumman and TransDigm each position within their functional peer groups in AssetNext.

Peer-Relative Score
NOC
Northrop Grumman Corporation
68
Peer-Score
Signal qualityMedium
vs
TDG
TransDigm Group Incorporated
59
Peer-Score
Signal qualityHigh

Scores reflect position relative to comparable companies with similar long-term financial trajectories.

The largest gaps do not all point in the same direction.

Dimension spread: NOC vs TDG Profitability 62 84 Stability 77 58 Valuation 74 59 Growth 63 23 NOC TDG
Gap Ranking
#1 Growth +40
#2 Profitability +22
#3 Stability +19
#4 Valuation +15
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for NOC and TDG Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer NOCTDG Relative valuation Structural strength

Northrop Grumman Corporation still looks stronger, and the price setup does not materially undermine that lead.

Valuation position uses peer-relative PE percentile (idx_pct_pe) where available.

Relative Position vs Comparable Companies
Growth
Northrop Grumman Corporation sits in the stronger part of the group on growth, while TransDigm Group Incorporated is closer to mid-pack.
Profitability
Both profiles are strong on profitability, but TransDigm Group Incorporated leads clearly.
Growth — Dominant Gap
NOC
63
TDG
23
Gap+40in favour of NOC

Earnings growth is one contributing factor within the growth lead.

What keeps the gap from being one-sided

Profitability still favours TransDigm, with a 29-point operating margin advantage keeping the comparison from looking fully resolved.

What this means for the comparison

The growth edge is decisive, but profitability still pushes back — the result holds, but not without a real counterweight.

Explore full peer positioning in AssetNext

Break down the NOC vs TDG comparison across all dimensions with the full interactive tool.

Explore full breakdown →
Other comparisons with conflicting dimension signals

Explore how NOC and TDG each compare against other companies in their peer groups.

Rule-based, descriptive analysis only. Derived from peer percentile dimensions. Not investment advice. Peer groups are determined algorithmically based on structural similarity — not by sector classification alone.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.