L3Harris vs Northrop Grumman
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The short version
- Northrop Grumman is the larger business, with $42.0B of revenue in fiscal 2025 against $21.9B for L3Harris, about 1.9 times as much.
- Northrop Grumman kept more of each dollar of sales as operating profit (10.8% operating margin, against 9.7%).
- L3Harris turned more of its sales into free cash flow (12.3% FCF margin, against 7.9%).
- Northrop Grumman earned a higher return on the capital invested in it (13.5%, against 5.8%).
- Investors pay more for each dollar of L3Harris’s earnings: a P/E of 25.6x against 17.4x for Northrop Grumman.
| Latest fiscal year | LHX · FY25 | NOC · FY25 |
|---|---|---|
| Size | ||
| Market cap | $47.6B | $78.5B |
| Revenue | $21.9B | $42.0B |
| Free cash flow | $2.7B | $3.3B |
| Net income | $1.6B | $4.2B |
| Growth | ||
| Revenue growth | 2.5% | 2.2% |
| 5-year growth | 3.7% | 2.7% |
| Share count change | −1.2% | −2.4% |
| Profitability | ||
| Gross margin | 25.7% | — |
| Operating margin | 9.7% | 10.8% |
| Net margin | 7.4% | 10.0% |
| FCF margin | 12.3% | 7.9% |
| Return on capital | 5.8% | 13.5% |
| Return on equity | 8.2% | 26.2% |
| Balance sheet | ||
| Net debt | $10.0B | $11.3B |
| Net debt / EBITDA | 3.0x | 1.9x |
| Dividends and buybacks | $2.1B | $2.9B |
| Valuation & quality | ||
| P/E | 25.6x | 17.4x |
| Piotroski F-score | 8 | 6 |
Revenue
FY16
LHX $6.0B
NOC $24.7B
FY17
LHX $5.9B
NOC $26.0B
FY18
LHX $6.2B
NOC $30.1B
FY19
LHX $6.8B
NOC $33.8B
FY20
LHX $18.2B
NOC $36.8B
FY21
LHX $17.8B
NOC $35.7B
FY22
LHX $17.1B
NOC $36.6B
FY23
LHX $19.4B
NOC $39.3B
FY24
LHX $21.3B
NOC $41.0B
FY25
LHX $21.9B
NOC $42.0B
LHX
NOC
Operating margin
FY16
LHX 17.6%
NOC 13.3%
FY17
LHX 18.2%
NOC 12.4%
FY18
LHX 18.2%
NOC 12.6%
FY19
LHX 21.3%
NOC 11.7%
FY20
LHX 11.9%
NOC 11.1%
FY21
LHX 11.8%
NOC 15.8%
FY22
LHX 6.6%
NOC 9.8%
FY23
LHX 7.3%
NOC 6.5%
FY24
LHX 9.0%
NOC 10.7%
FY25
LHX 9.7%
NOC 10.8%
LHX
NOC
Free cash flow
FY16
LHX $772M
NOC $1.9B
FY17
LHX $450M
NOC $1.7B
FY18
LHX $615M
NOC $2.6B
FY19
LHX $1.0B
NOC $3.0B
FY20
LHX $2.4B
NOC $2.9B
FY21
LHX $2.3B
NOC $2.2B
FY22
LHX $1.9B
NOC $1.5B
FY23
LHX $1.6B
NOC $2.1B
FY24
LHX $2.2B
NOC $2.6B
FY25
LHX $2.7B
NOC $3.3B
LHX
NOC
Return on capital
FY16
LHX 9.8%
NOC 25.5%
FY17
LHX 11.5%
NOC 20.7%
FY18
LHX 13.1%
NOC 20.3%
FY19
LHX 18.9%
NOC 16.9%
FY20
LHX 10.8%
NOC 16.9%
FY21
LHX 6.6%
NOC 20.7%
FY22
LHX 3.7%
NOC 12.6%
FY23
LHX 5.0%
NOC 8.7%
FY24
LHX 5.8%
NOC 13.8%
FY25
LHX 5.8%
NOC 13.5%
LHX
NOC
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.