Between General Dynamics and Northrop Grumman, Which Stock Looks Set to Break Out?
Northrop Grumman surged 18% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer General Dynamics gives you more. General Dynamics (GD) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Northrop Grumman (NOC) stock, suggesting you may be better off investing in GD
- GD’s Last 12 Months revenue growth was 10.1%, vs. NOC’s 2.2%.
- In addition, its Last 3-Year Average revenue growth came in at 10.1%, ahead of NOC’s 4.7%.
- GD’s 3-year average margin is stronger: 10.1% vs. NOC’s 9.1%.
These differences become even clearer when you look at the financials side by side. The table highlights how NOC’s fundamentals stack up against those of GD on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| NOC | GD | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 23.3 | 18.1 | GD |
| Revenue Growth | |||
| Last Quarter | 9.6% | 7.8% | NOC |
| Last 12 Months | 2.2% | 10.1% | GD |
| Last 3 Year Average | 4.7% | 10.1% | GD |
| Operating Margins | |||
| Last 12 Months | 10.2% | 10.2% | NOC |
| Last 3 Year Average | 9.1% | 10.1% | GD |
| Momentum | |||
| Last 3 Year Return | 61.7% | 67.6% | GD |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: NOC Revenue Comparison | GD Revenue Comparison
See more margin details: NOC Operating Income Comparison | GD Operating Income Comparison
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See detailed fundamentals on Buy or Sell GD Stock and Buy or Sell NOC Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| NOC Return | 29% | 43% | -13% | 2% | 24% | 24% | 153% | ||
| GD Return | 44% | 22% | 7% | 4% | 30% | 7% | 172% | <=== | |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 1% | 85% | ||
| Monthly Win Rates [3] | |||||||||
| NOC Win Rate | 50% | 67% | 42% | 50% | 58% | 100% | 61% | ||
| GD Win Rate | 58% | 58% | 58% | 67% | 67% | 100% | 68% | <=== | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | 62% | ||
| Max Drawdowns [4] | |||||||||
| NOC Max Drawdown | -6% | -4% | -22% | -9% | -8% | 0% | -8% | ||
| GD Max Drawdown | -2% | -1% | -17% | -4% | -8% | 0% | -5% | <=== | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -1% | -7% | ||
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 2/9/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read GD Dip Buyer Analyses to see how the stock has fallen and recovered in the past.
Still not sure about NOC or GD? Consider portfolio approach.
Portfolios Win When Stock Picks Fall Short
Single stocks swing wildly but staying invested matters. A well built portfolio helps you stay invested, captures upside and softens the blows from individual stocks.
Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.