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BAESY vs. NOC: Which Defense Stock Offers Better Investment Potential?
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Key Takeaways
BAE Systems rose 23.2% in six months, while Northrop Grumman fell 2.1%.
BAE Systems is investing $135M in U.S. facility upgrades and delivered NGP sensor components.
Northrop Grumman delivered its 1,000th SABR radar and signed an Estonia air-defense modernization MoU.
As global tensions continue to rise, countries are increasing their defense budgets and investing more in military equipment and advanced technologies. This trend is creating strong growth opportunities for defense companies like BAE Systems plc (BAESY - Free Report) and Northrop Grumman (NOC - Free Report) .
BAE Systems develops defense, aerospace and security products and is known for platforms such as the Eurofighter Typhoon aircraft, CV90 combat vehicles and Astute-class submarines. On the other hand, Northrop Grumman is a diversified aerospace and defense company with operations across space, aeronautics, defense and cybersecurity. Its products include missile defense systems, satellites, autonomous technologies and cyber solutions.
As governments continue to modernize their defense capabilities, both BAESY and NOC are expected to benefit from higher military spending and growing demand for advanced defense systems.
But which of these two defense stocks currently offers the stronger investment opportunity? Let’s take a closer look.
Tailwinds for BAESY
BAE Systems is benefiting from strategic investments and program developments that strengthen its long-term growth outlook. The company continues to expand its production capabilities to support rising defense demand and improve delivery efficiency.
In May 2026, BAE Systems announced a $135 million investment to upgrade facilities in Austin, TX, and Hudson, NH. Fully funded by the company, the initiative is expected to enhance infrastructure, accelerate the delivery of critical systems and software and support U.S. military readiness.
Moreover, BAE Systems recently delivered key sensor components for the Next Generation Overhead Persistent Infrared Polar (NGP) program, which will provide the U.S. Space Force with advanced missile warning, technical intelligence and battlespace awareness capabilities. This milestone keeps the program on track for full payload assembly, with Flight Unit 1 expected to launch in 2028.
These developments reflect BAE Systems’ continued focus on strengthening its defense capabilities and expanding its presence across key military and space programs.
Tailwinds for NOC
Northrop Grumman continues to benefit from strong defense demand, supported by technology advancements and strategic partnerships that strengthen its market position.
In May 2026, the company delivered its 1,000th APG-83 Scalable Agile Beam Radar (SABR) system, a major milestone for one of its key defense technologies. The advanced radar system upgrades existing fighter aircraft, such as the F-16, with next-generation sensing capabilities similar to those used in advanced jets like the F-22 and F-35. With features including ground mapping, target tracking and electronic signal detection, SABR enhances battlefield awareness while allowing software-based upgrades to address evolving threats.
Moreover, Northrop Grumman signed a memorandum of understanding with TOCI to support the modernization of Estonia’s integrated air and missile defense systems. Through this collaboration, the company aims to provide tailored defense solutions by leveraging its expertise in Integrated Air and Missile Defense (IAMD), including its proven Integrated Battle Command System (IBCS). The partnership is expected to strengthen Estonia’s defense readiness amid rising regional security concerns.
These developments highlight Northrop Grumman’s focus on expanding its advanced defense capabilities and reinforcing its presence in key global defense programs.
How do EPS Estimates Compare for BAESY & NOC?
The Zacks Consensus Estimate for BAESY’s 2026 earnings per share (EPS) is pegged at $4.56, which indicates year-over-year growth of 16.3%. The consensus estimate for 2026 revenues is pegged at $44.65 billion, which indicates year-over-year growth of 56.8%. The company’s 2026 and 2027 EPS estimates have moved north over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NOC’s 2026 EPS is pegged at $27.95, which indicates year-over-year growth of 6.1%. The consensus estimate for 2026 revenues is pegged at $43.97 billion, which indicates year-over-year growth of 4.8%. The company’s 2026 and 2027 EPS estimates have moved south over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: BAESY vs. NOC
BAESY has outperformed NOC over the past six months. Shares of BAESY gained 23.2% compared with shares of NOC, which lost 2.1%.
Image Source: Zacks Investment Research
BAESY’s Valuation More Attractive Than NOC
NOC shares are expensive on a relative basis, with its forward 12-month Price/Sales (P/S F12M) being 1.75X compared with BAESY’s P/S F12M of 1.74X.
Image Source: Zacks Investment Research
Conclusion
Both BAE Systems and Northrop Grumman are strong defense companies with solid government ties and a wide range of products. However, BAE Systems appears to have the edge over NOC for now. Its earnings estimates have been rising and its stock has delivered better returns than Northrop Grumman over the past six months.
Although NOC remains a reliable defense player offering a stable financial base, BAE Systems looks more attractive for investors seeking growth and momentum.
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BAESY vs. NOC: Which Defense Stock Offers Better Investment Potential?
Key Takeaways
As global tensions continue to rise, countries are increasing their defense budgets and investing more in military equipment and advanced technologies. This trend is creating strong growth opportunities for defense companies like BAE Systems plc (BAESY - Free Report) and Northrop Grumman (NOC - Free Report) .
BAE Systems develops defense, aerospace and security products and is known for platforms such as the Eurofighter Typhoon aircraft, CV90 combat vehicles and Astute-class submarines. On the other hand, Northrop Grumman is a diversified aerospace and defense company with operations across space, aeronautics, defense and cybersecurity. Its products include missile defense systems, satellites, autonomous technologies and cyber solutions.
As governments continue to modernize their defense capabilities, both BAESY and NOC are expected to benefit from higher military spending and growing demand for advanced defense systems.
But which of these two defense stocks currently offers the stronger investment opportunity? Let’s take a closer look.
Tailwinds for BAESY
BAE Systems is benefiting from strategic investments and program developments that strengthen its long-term growth outlook. The company continues to expand its production capabilities to support rising defense demand and improve delivery efficiency.
In May 2026, BAE Systems announced a $135 million investment to upgrade facilities in Austin, TX, and Hudson, NH. Fully funded by the company, the initiative is expected to enhance infrastructure, accelerate the delivery of critical systems and software and support U.S. military readiness.
Moreover, BAE Systems recently delivered key sensor components for the Next Generation Overhead Persistent Infrared Polar (NGP) program, which will provide the U.S. Space Force with advanced missile warning, technical intelligence and battlespace awareness capabilities. This milestone keeps the program on track for full payload assembly, with Flight Unit 1 expected to launch in 2028.
These developments reflect BAE Systems’ continued focus on strengthening its defense capabilities and expanding its presence across key military and space programs.
Tailwinds for NOC
Northrop Grumman continues to benefit from strong defense demand, supported by technology advancements and strategic partnerships that strengthen its market position.
In May 2026, the company delivered its 1,000th APG-83 Scalable Agile Beam Radar (SABR) system, a major milestone for one of its key defense technologies. The advanced radar system upgrades existing fighter aircraft, such as the F-16, with next-generation sensing capabilities similar to those used in advanced jets like the F-22 and F-35. With features including ground mapping, target tracking and electronic signal detection, SABR enhances battlefield awareness while allowing software-based upgrades to address evolving threats.
Moreover, Northrop Grumman signed a memorandum of understanding with TOCI to support the modernization of Estonia’s integrated air and missile defense systems. Through this collaboration, the company aims to provide tailored defense solutions by leveraging its expertise in Integrated Air and Missile Defense (IAMD), including its proven Integrated Battle Command System (IBCS). The partnership is expected to strengthen Estonia’s defense readiness amid rising regional security concerns.
These developments highlight Northrop Grumman’s focus on expanding its advanced defense capabilities and reinforcing its presence in key global defense programs.
How do EPS Estimates Compare for BAESY & NOC?
The Zacks Consensus Estimate for BAESY’s 2026 earnings per share (EPS) is pegged at $4.56, which indicates year-over-year growth of 16.3%. The consensus estimate for 2026 revenues is pegged at $44.65 billion, which indicates year-over-year growth of 56.8%. The company’s 2026 and 2027 EPS estimates have moved north over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NOC’s 2026 EPS is pegged at $27.95, which indicates year-over-year growth of 6.1%. The consensus estimate for 2026 revenues is pegged at $43.97 billion, which indicates year-over-year growth of 4.8%. The company’s 2026 and 2027 EPS estimates have moved south over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: BAESY vs. NOC
BAESY has outperformed NOC over the past six months. Shares of BAESY gained 23.2% compared with shares of NOC, which lost 2.1%.
Image Source: Zacks Investment Research
BAESY’s Valuation More Attractive Than NOC
NOC shares are expensive on a relative basis, with its forward 12-month Price/Sales (P/S F12M) being 1.75X compared with BAESY’s P/S F12M of 1.74X.
Image Source: Zacks Investment Research
Conclusion
Both BAE Systems and Northrop Grumman are strong defense companies with solid government ties and a wide range of products. However, BAE Systems appears to have the edge over NOC for now. Its earnings estimates have been rising and its stock has delivered better returns than Northrop Grumman over the past six months.
Although NOC remains a reliable defense player offering a stable financial base, BAE Systems looks more attractive for investors seeking growth and momentum.
BAESY currently carries a Zacks Rank #2 (Buy), while NOC has a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks Rank #1 (Strong Buy) stocks here.