Northrop Grumann NOC

Thanks Dan

So the key difference here is NOC has much more exposure outside of aerospace and defense. We can think of Lockheed Martin as a heavy defense player (Think of the F-35 program as an example) while Northrop has much more exposure to the space side of the business.

Northrop will likely see more volatile cyclical spending, whereas Lockheed should be the more stable generator as the bulk of its money comes from defense systems via the US Government (around 70% of Lockheeds revenue is generated from the US Govt).

Overall, if I were to sum it up in a single sentence, Lockheed is likely the more stable generator, while Northrop is the faster grower but is also a little more exposed to cyclical downtrends in spending. These two often have nearly identical share trajectories and were pretty much on par in terms of long-term returns up until Elon Musk caused some turmoil with Lockheed. I don't think you can go wrong with either.