Axon Enterprise (NASDAQ:AXON) & Northrop Grumman (NYSE:NOC) Head to Head Contrast

Northrop Grumman (NYSE:NOC) and Axon Enterprise (NASDAQ:AXON) are both large-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Profitability

This table compares Northrop Grumman and Axon Enterprise’s 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%
Axon Enterprise	7.56%	3.87%	1.81%

Volatility and Risk

Northrop Grumman has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500. Comparatively, Axon Enterprise has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Institutional and Insider Ownership

83.4% of Northrop Grumman shares are owned by institutional investors. Comparatively, 79.1% of Axon Enterprise shares are owned by institutional investors. 0.2% of Northrop Grumman shares are owned by insiders. Comparatively, 4.2% of Axon Enterprise shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Northrop Grumman and Axon Enterprise”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northrop Grumman	$43.59 billion	1.79	$4.18 billion	$31.70	17.34
Axon Enterprise	$2.78 billion	9.00	$124.66 million	$3.12	98.43

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

Analyst Ratings

This is a summary of recent ratings and price targets for Northrop Grumman and Axon Enterprise, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northrop Grumman	1	9	15	0	2.56
Axon Enterprise	0	4	13	0	2.76

Northrop Grumman currently has a consensus target price of $643.74, suggesting a potential upside of 17.12%. Axon Enterprise has a consensus target price of $612.18, suggesting a potential upside of 99.33%. Given Axon Enterprise’s stronger consensus rating and higher possible upside, analysts plainly believe Axon Enterprise is more favorable than Northrop Grumman.

Summary

Northrop Grumman beats Axon Enterprise on 8 of the 14 factors compared between the two stocks.

About Northrop Grumman

Northrop Grumman Corporation is a U.S.-based aerospace and defense company that develops and produces systems for government and commercial customers. Its business spans aeronautics, defense, mission technologies and space, including military aircraft, autonomous systems, missile and air-defense capabilities, sensors, communications and satellites. The company is the prime contractor for the B-21 Raider and is developing the Sentinel intercontinental ballistic missile system. It also supplies technologies and components for other defense programs, as well as launch vehicles, propulsion systems and spacecraft.

About Axon Enterprise

Axon Enterprise develops technology and services for public safety agencies. Its products include TASER conducted-energy weapons, body-worn and in-car cameras, and related hardware designed to support law enforcement and other safety professionals. The company also provides cloud-based software for managing digital evidence, records and operational workflows. Its Axon Evidence platform helps agencies store, organize and share video and other evidence, while its broader software offerings include tools for dispatch and records management.