Northrop Grumman (NYSE:NOC) versus Butler National (OTCMKTS:BUKS) Head-To-Head Review

Northrop Grumman (NYSE:NOC) and Butler National (OTCMKTS:BUKS) are both aerospace companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Institutional & Insider Ownership

83.4% of Northrop Grumman shares are held by institutional investors. Comparatively, 5.0% of Butler National shares are held by institutional investors. 0.2% of Northrop Grumman shares are held by company insiders. Comparatively, 17.6% of Butler National shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Northrop Grumman and Butler National, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northrop Grumman	0	10	11	1	2.59
Butler National	0	0	0	0	0.00

Northrop Grumman currently has a consensus price target of $676.29, suggesting a potential upside of 29.26%. Given Northrop Grumman’s stronger consensus rating and higher probable upside, research analysts clearly believe Northrop Grumman is more favorable than Butler National.

Volatility & Risk

Northrop Grumman has a beta of -0.1, indicating that its share price is 110% less volatile than the S&P 500. Comparatively, Butler National has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500.

Earnings and Valuation

This table compares Northrop Grumman and Butler National”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northrop Grumman	$41.95 billion	1.77	$4.18 billion	$31.95	16.38
Butler National	$97.97 million	3.97	$21.93 million	$0.34	14.29

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northrop Grumman	10.80%	24.72%	8.06%
Butler National	22.39%	29.86%	16.21%

Summary

Northrop Grumman beats Butler National on 9 of the 15 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 Butler National

Butler National Corporation, together with its subsidiaries, designs, engineers, manufactures, sells, integrates, installs, repairs, modifies, overhauls, services, and distributes a portfolio of aerostructures, aircraft components, avionics, accessories, subassemblies, and systems in North America, Europe, the Middle East, Asia, and internationally. It operates through two segments, Aerospace Products and Professional Services. The Aerospace Products segment provides aircraft modifications to business-size aircraft, which include passenger-to-freighter configuration, radar systems, addition of aerial photography capabilities, search and rescue, environmental research, mapping, intelligence surveillance reconnaissance modifications, and stability enhancing modifications for Learjet, Beechcraft, and Cessna aircraft along with other specialized modifications. This segment manufactures, sells, and services electronics for weapon control systems that are used on government aircraft and vehicles; and sells, installs, and repairs aircraft avionics equipment, including airplane radio equipment and flight control systems, as well as troubleshoots and repairs autopilot systems. Its Professional Services segment manages Boot Hill Casino and Resort, a gaming, dining, and entertainment facility in Dodge City, Kansas. The company acquires, refurbishes, and sells airplanes, primarily Learjets; owns properties; and operates a management consulting and administrative services firm that provides business planning and financial coordination to Indian tribes interested in owning and operating casinos. It serves the aviation industry, including owners and operators of private and commercial business and government aircraft and suppliers. Butler National Corporation was incorporated in 1960 and is headquartered in New Century, Kansas.