Comparing Northrop Grumman (NYSE:NOC) and Ondas (NASDAQ:ONDS)
by Michael Walen · The Markets DailyNorthrop Grumman (NYSE:NOC – Get Free Report) and Ondas (NASDAQ:ONDS – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Volatility & Risk
Northrop Grumman has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500. Comparatively, Ondas has a beta of 3.1, suggesting that its stock price is 210% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Northrop Grumman and Ondas, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Northrop Grumman | 1 | 9 | 15 | 0 | 2.56 |
| Ondas | 1 | 1 | 11 | 0 | 2.77 |
Northrop Grumman currently has a consensus price target of $643.74, indicating a potential upside of 22.45%. Ondas has a consensus price target of $16.89, indicating a potential upside of 216.22%. Given Ondas’ stronger consensus rating and higher possible upside, analysts plainly believe Ondas is more favorable than Northrop Grumman.
Earnings & Valuation
This table compares Northrop Grumman and Ondas”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Northrop Grumman | $41.95 billion | 1.78 | $4.18 billion | $31.70 | 16.58 |
| Ondas | $50.73 million | 61.29 | -$132.02 million | ($0.07) | -76.29 |
Northrop Grumman has higher revenue and earnings than Ondas. Ondas is trading at a lower price-to-earnings ratio than Northrop Grumman, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
83.4% of Northrop Grumman shares are held by institutional investors. Comparatively, 37.7% of Ondas shares are held by institutional investors. 0.2% of Northrop Grumman shares are held by company insiders. Comparatively, 1.7% of Ondas shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Northrop Grumman and Ondas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Northrop Grumman | 10.37% | 23.46% | 8.06% |
| Ondas | 93.55% | -14.20% | -7.15% |
Summary
Northrop Grumman beats Ondas on 8 of the 14 factors compared between the two stocks.
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.
About Ondas
Ondas Holdings Inc., through its subsidiaries, provides private wireless, drone, and automated data solutions. It operates in two segments, Ondas Networks and Ondas Autonomous Systems. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks. Its FullMAX SDR platform enables secure and reliable industrial-grade connectivity for truly mission-critical applications. The company also offers Optimus, an AI-powered drone with imaging payloads; the Airbase, a ruggedized weatherproof base station for housing, data processing, and cloud transfer; Insightful, a secure web portal and API, which enables remote interaction with the system, data, and resulting analytics anywhere in the world; and the Raider, a counter-drone system for security and the protection of critical infrastructure, assets, and people from the threat of hostile drones. It serves users in rail, energy, mining, agriculture, public safety, critical infrastructure, and government markets in the United States and internationally. The company is headquartered in Waltham, Massachusetts.