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Boeing vs. Northrop Grumman: Which Stock Offers Better Growth?
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Key Takeaways
Boeing's commercial deliveries rose 14%, while its defense revenues increased 13% in the second quarter.
Northrop Grumman's backlog climbed 17% to $104.7 billion after $20 billion in net awards.
Boeing and Northrop Grumman differ notably in earnings growth estimates, valuation and debt levels.
Boeing (BA - Free Report) and Northrop Grumman (NOC - Free Report) are two prominent U.S. aerospace and defense companies with significant positions in both government and defense programs.
Boeing has significantly greater exposure to commercial aviation. Its Commercial Airplanes business produces aircraft such as the 737, 787 and 777X, while its Defense, Space & Security segment produces military aircraft, tankers, helicopters, spacecraft and other defense systems. Boeing also has a large Global Services business that provides maintenance, parts and other support.
Northrop Grumman, by contrast, is primarily a defense and national-security company. Its businesses span aeronautics, defense systems, mission systems and space systems, with programs involving strategic weapons, missile defense, advanced aircraft systems, sensors, space technology and other government programs.
Let's compare the two stocks' fundamentals to determine which one is a better investment option at present.
Factors Acting in Favor of BA Stock
In the second quarter of 2026, Boeing Commercial Airplanes (“BCA”) delivered 171 aircraft, up 14% year over year, while revenues rose 8% to $11.75 billion. The segment ended the quarter with a record $597 billion backlog, supported by strong demand for the 737 and 787. Boeing expects about 500 737 deliveries and 90-100 787 deliveries in 2026.
Beyond commercial aviation, Boeing’s defense, space and services businesses provide additional growth and recurring revenue opportunities. In the second quarter of 2026, Defense, Space & Security (“BDS”) revenues increased 13% to $7.48 billion, with the segment booking $7 billion of orders and ending with an $85 billion backlog. Key programs such as the MQ-25A Stingray and T-7A Red Hawk advanced toward low-rate production, while demand for missiles, munitions and secure communications satellites remained strong.
Meanwhile, Boeing Global Services generated $5.34 billion in quarterly revenues and maintained an 18.1% operating margin, supported by recurring demand for parts, maintenance, modifications, training and logistics. With commercial aircraft deliveries recovering, major defense programs moving into production and Global Services providing higher-margin recurring revenues, Boeing has several potential avenues for improving revenues and cash flow over the coming years.
Factors Acting in Favor of NOC Stock
Northrop Grumman maintains a broad presence across strategic defense, space, missile defense, advanced aircraft and mission systems. In the second quarter of 2026, the company secured $20 billion in net awards, resulting in a strong 1.84 book-to-bill ratio and pushing its backlog up 17% year over year to a record $104.7 billion. Management expects to recognize about 35% of this backlog within the next 12 months and 55% within 24 months, providing significant revenue visibility.
NOC has been selected to provide a commercially derived prototype for the Department of War Innovation Unit’s GHOST-R mission, expanding its involvement in lower-cost, proliferated space systems. The award also builds on the company’s experience with the Geosynchronous Space Situational Awareness Program, highlighting NOC’s growing role in advanced space-based reconnaissance and national-security missions.
Northrop Grumman is expanding defense partnerships across Central and Eastern Europe, including new collaborations in Estonia and Poland involving IBCS, Bushmaster cannons, E-2D and counter-drone systems. These partnerships can expand NOC’s access to growing European defense programs, strengthen its position with NATO allies, and create opportunities for additional equipment sales, technology integration, services and long-term support contracts.
How Do Zacks Estimates Compare for BA & NOC?
The Zacks Consensus Estimate for Boeing’s 2026 and 2027 earnings per share (EPS) indicates an increase of 91.45% and 525.72%, respectively, year over year. BA’s long-term (three to five years) earnings growth rate is 12%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Northrop Grumman’s 2026 and 2027 EPS indicates an increase of 9.45% and 5.57%, respectively, year over year. NOC’s long-term earnings growth rate is 5.89%.
Image Source: Zacks Investment Research
Valuation for BA & NOC
BA shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.44X compared with NOC’s 1.57X.
Debt Position of BA & NOC
Currently, Boeing’s total debt to capital is 88.24% compared with Northrop Grumman’s 44.65%.
Image Source: Zacks Investment Research
The time-to-interest earned ratio for Boeing and Northrop Grumman is 2.1 and 9, respectively. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
BA & NOC’s Price Performance
In the past three months, shares of Northrop Grumman have risen 2.9%, while those of Boeing have declined 7.7%.
Image Source: Zacks Investment Research
BA or NOC: Which Is a Better Choice Now?
Boeing is seeing improving commercial aircraft deliveries, strong demand and backlog, advancing defense programs, and steady recurring revenues from Global Services, providing multiple potential drivers for future revenue and cash-flow growth. Northrop Grumman is benefiting from strong defense and space demand, a robust backlog, expanding space capabilities, and growing international partnerships that could support future revenue growth.
Our choice at the moment is Northrop Grumman, given its better debt management and price performance than Boeing. NOC carries a Zacks Rank #3 (Hold) and BA has a Zacks Rank #4 (Sell) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
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Boeing vs. Northrop Grumman: Which Stock Offers Better Growth?
Key Takeaways
Boeing (BA - Free Report) and Northrop Grumman (NOC - Free Report) are two prominent U.S. aerospace and defense companies with significant positions in both government and defense programs.
Boeing has significantly greater exposure to commercial aviation. Its Commercial Airplanes business produces aircraft such as the 737, 787 and 777X, while its Defense, Space & Security segment produces military aircraft, tankers, helicopters, spacecraft and other defense systems. Boeing also has a large Global Services business that provides maintenance, parts and other support.
Northrop Grumman, by contrast, is primarily a defense and national-security company. Its businesses span aeronautics, defense systems, mission systems and space systems, with programs involving strategic weapons, missile defense, advanced aircraft systems, sensors, space technology and other government programs.
Let's compare the two stocks' fundamentals to determine which one is a better investment option at present.
Factors Acting in Favor of BA Stock
In the second quarter of 2026, Boeing Commercial Airplanes (“BCA”) delivered 171 aircraft, up 14% year over year, while revenues rose 8% to $11.75 billion. The segment ended the quarter with a record $597 billion backlog, supported by strong demand for the 737 and 787. Boeing expects about 500 737 deliveries and 90-100 787 deliveries in 2026.
Beyond commercial aviation, Boeing’s defense, space and services businesses provide additional growth and recurring revenue opportunities. In the second quarter of 2026, Defense, Space & Security (“BDS”) revenues increased 13% to $7.48 billion, with the segment booking $7 billion of orders and ending with an $85 billion backlog. Key programs such as the MQ-25A Stingray and T-7A Red Hawk advanced toward low-rate production, while demand for missiles, munitions and secure communications satellites remained strong.
Meanwhile, Boeing Global Services generated $5.34 billion in quarterly revenues and maintained an 18.1% operating margin, supported by recurring demand for parts, maintenance, modifications, training and logistics. With commercial aircraft deliveries recovering, major defense programs moving into production and Global Services providing higher-margin recurring revenues, Boeing has several potential avenues for improving revenues and cash flow over the coming years.
Factors Acting in Favor of NOC Stock
Northrop Grumman maintains a broad presence across strategic defense, space, missile defense, advanced aircraft and mission systems. In the second quarter of 2026, the company secured $20 billion in net awards, resulting in a strong 1.84 book-to-bill ratio and pushing its backlog up 17% year over year to a record $104.7 billion. Management expects to recognize about 35% of this backlog within the next 12 months and 55% within 24 months, providing significant revenue visibility.
NOC has been selected to provide a commercially derived prototype for the Department of War Innovation Unit’s GHOST-R mission, expanding its involvement in lower-cost, proliferated space systems. The award also builds on the company’s experience with the Geosynchronous Space Situational Awareness Program, highlighting NOC’s growing role in advanced space-based reconnaissance and national-security missions.
Northrop Grumman is expanding defense partnerships across Central and Eastern Europe, including new collaborations in Estonia and Poland involving IBCS, Bushmaster cannons, E-2D and counter-drone systems. These partnerships can expand NOC’s access to growing European defense programs, strengthen its position with NATO allies, and create opportunities for additional equipment sales, technology integration, services and long-term support contracts.
How Do Zacks Estimates Compare for BA & NOC?
The Zacks Consensus Estimate for Boeing’s 2026 and 2027 earnings per share (EPS) indicates an increase of 91.45% and 525.72%, respectively, year over year. BA’s long-term (three to five years) earnings growth rate is 12%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Northrop Grumman’s 2026 and 2027 EPS indicates an increase of 9.45% and 5.57%, respectively, year over year. NOC’s long-term earnings growth rate is 5.89%.
Image Source: Zacks Investment Research
Valuation for BA & NOC
BA shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.44X compared with NOC’s 1.57X.
Debt Position of BA & NOC
Currently, Boeing’s total debt to capital is 88.24% compared with Northrop Grumman’s 44.65%.
Image Source: Zacks Investment Research
The time-to-interest earned ratio for Boeing and Northrop Grumman is 2.1 and 9, respectively. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
BA & NOC’s Price Performance
In the past three months, shares of Northrop Grumman have risen 2.9%, while those of Boeing have declined 7.7%.
Image Source: Zacks Investment Research
BA or NOC: Which Is a Better Choice Now?
Boeing is seeing improving commercial aircraft deliveries, strong demand and backlog, advancing defense programs, and steady recurring revenues from Global Services, providing multiple potential drivers for future revenue and cash-flow growth. Northrop Grumman is benefiting from strong defense and space demand, a robust backlog, expanding space capabilities, and growing international partnerships that could support future revenue growth.
Our choice at the moment is Northrop Grumman, given its better debt management and price performance than Boeing. NOC carries a Zacks Rank #3 (Hold) and BA has a Zacks Rank #4 (Sell) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.