AIT vs. NOC: Applied Industrial vs. Northrop Grumman Stock Comparison

November 11, 2026

How do Applied Industrial (AIT) and Northrop Grumman (NOC) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Applied Industrial (AIT) and Northrop Grumman (NOC) both fall under the Capital Goods industry group, but AIT is classified in Trading Companies & Distributors while NOC is classified in Aerospace & Defense.

Company profile comparison for Applied Industrial (AIT) and Northrop Grumman (NOC)
Profile Item	AIT	NOC
Name	Applied Industrial Technologies Inc.	Northrop Grumman Corporation
Country/Region	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Trading Companies & Distributors	Aerospace & Defense
GICS Sub-Industry	Trading Companies & Distributors	Aerospace & Defense
Market Capitalization	10.35 billion USD	74.59 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	March 17, 1980	December 31, 1981
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

AIT

NOC

GSPC

Applied Industrial (AIT) vs. Northrop Grumman (NOC), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Applied Industrial (AIT) and Northrop Grumman (NOC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Applied Industrial (AIT) and Northrop Grumman (NOC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Applied Industrial (AIT) and Northrop Grumman (NOC)
Metric	AIT	NOC
Total Return (1Y)	15.62%	-3.34%
Total Return (3Y, Annualized)	24.49%	7.23%
Total Return (5Y, Annualized)	24.56%	9.98%

Risk Profile

Drawdown History

AIT

NOC

GSPC

Applied Industrial (AIT) vs. Northrop Grumman (NOC), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Applied Industrial (AIT) and Northrop Grumman (NOC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Northrop Grumman (NOC) reports a negative beta of -0.12, suggesting inverse market sensitivity over the measurement window. That is uncommon for ordinary equities and can reflect commodity-linked or hedge-like exposure, but it can also come from statistical noise. Applied Industrial (AIT) has a non-negative beta of 0.86.

Risk profile metrics for Applied Industrial (AIT) and Northrop Grumman (NOC)
Metric	AIT	NOC
Volatility (1Y, Annualized)	28.72%	28.86%
Beta (5Y)	0.86	-0.12
Max Drawdown (5Y)	-26.42%	-37.80%
Avg. Volume (3M)	295.41K	902.47K

Risk-Adjusted Performance

Risk-Return Positioning

AIT and NOC are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Applied Industrial (AIT) and Northrop Grumman (NOC)
Metric	AIT	NOC
Sharpe Ratio (1Y)	0.39	-0.26
Sortino Ratio (1Y)	0.53	-0.37

Profitability

ROE (TTM)

Both Applied Industrial (AIT) at 22.51% and Northrop Grumman (NOC) at 26.07% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

AIT

Capital Goods industry group

22.51%

Max: 40.55%
AIT: 22.51%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

NOC

Capital Goods industry group

26.07%

Max: 40.55%
NOC: 26.07%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

Applied Industrial (AIT) vs. Northrop Grumman (NOC): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Both Applied Industrial (AIT) at 8.39% and Northrop Grumman (NOC) at 10.37% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

AIT

Capital Goods industry group

8.39%

Max: 27.47%
Q3: 12.10%
AIT: 8.39%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

NOC

Capital Goods industry group

10.37%

Max: 27.47%
Q3: 12.10%
NOC: 10.37%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Applied Industrial (AIT) vs. Northrop Grumman (NOC): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Applied Industrial (AIT) at 11.12% and Northrop Grumman (NOC) at 12.91% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

AIT

Capital Goods industry group

11.12%

Max: 36.60%
Q3: 18.33%
AIT: 11.12%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

NOC

Capital Goods industry group

12.91%

Max: 36.60%
Q3: 18.33%
NOC: 12.91%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

Applied Industrial (AIT) vs. Northrop Grumman (NOC): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Applied Industrial (AIT) and Northrop Grumman (NOC)
Metric	AIT	NOC
ROE (TTM)	22.51%	26.07%
ROA (TTM)	11.43%	7.11%
Net Margin (TTM)	8.39%	10.37%
Operating Margin (TTM)	11.12%	12.91%
Gross Margin (TTM)	30.40%	20.03%

Growth

Revenue Growth

Both Applied Industrial (AIT) at 8.84% and Northrop Grumman (NOC) at 2.24% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Applied Industrial (AIT) vs. Northrop Grumman (NOC): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Northrop Grumman (NOC) reports EPS growth of 2.61%, ranked against its industry; Applied Industrial (AIT) has no EPS growth figure this period.

Applied Industrial (AIT) vs. Northrop Grumman (NOC): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Applied Industrial (AIT) and Northrop Grumman (NOC)
Metric	AIT	NOC
Revenue Growth (YoY)	8.84%	2.24%
Revenue Growth (3Y CAGR)	4.02%	4.65%
EPS Growth (YoY)	--	2.61%
EPS Growth (3Y CAGR)	7.40%	-2.60%

Financial Strength

Current Ratio (MRQ)

Applied Industrial (AIT) at 2.89 keeps current ratio within its industry’s typical mid-range, while Northrop Grumman (NOC) at 1.23 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for NOC.

AIT

Capital Goods industry group

2.89

Max: 5.22
Q3: 2.95
AIT: 2.89
Median: 2.08
Q1: 1.43
Min: 0.36

NOC

Capital Goods industry group

1.23

Max: 5.22
Q3: 2.95
Median: 2.08
Q1: 1.43
NOC: 1.23
Min: 0.36

Applied Industrial (AIT) vs. Northrop Grumman (NOC): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Applied Industrial (AIT) at 0.15 keeps leverage in the lower industry quartile, while Northrop Grumman (NOC) at 0.93 runs a more typical debt-to-equity mix.

AIT

Capital Goods industry group

0.15

Max: 2.33
Q3: 1.12
Median: 0.60
Q1: 0.29
AIT: 0.15
Min: 0.00

NOC

Capital Goods industry group

0.93

Max: 2.33
Q3: 1.12
NOC: 0.93
Median: 0.60
Q1: 0.29
Min: 0.00

Applied Industrial (AIT) vs. Northrop Grumman (NOC): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Applied Industrial (AIT) and Northrop Grumman (NOC)
Metric	AIT	NOC
Current Ratio (MRQ)	2.89	1.23
Debt / Equity (MRQ)	0.15	0.93
Net Debt / EBITDA	0.27	1.87

Dividends

Dividend Yield (TTM)

Northrop Grumman (NOC) at 1.82% delivers top-quartile income for its industry, while Applied Industrial (AIT) at 0.71% pays a more typical yield — both are credible income propositions, NOC the richer one.

AIT

Capital Goods industry group

0.71%

Max: 2.66%
Q3: 1.14%
AIT: 0.71%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

NOC

Capital Goods industry group

1.82%

Max: 2.66%
NOC: 1.82%
Q3: 1.14%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

Applied Industrial (AIT) vs. Northrop Grumman (NOC): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Applied Industrial (AIT) at 17.63% pays out a band-typical share of earnings, while Northrop Grumman (NOC) at 30.18% distributes more than its industry norm — less retained, thinner cover.

AIT

Capital Goods industry group

17.63%

Max: 67.39%
Q3: 28.02%
AIT: 17.63%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

NOC

Capital Goods industry group

30.18%

Max: 67.39%
NOC: 30.18%
Q3: 28.02%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

Applied Industrial (AIT) vs. Northrop Grumman (NOC): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Applied Industrial (AIT) and Northrop Grumman (NOC)
Metric	AIT	NOC
Dividend Yield (TTM)	0.71%	1.82%
Dividend Payout Ratio (TTM)	17.63%	30.18%

Valuation

P/E Ratio (TTM)

Northrop Grumman (NOC) at 16.57 sits in the cheaper P/E ratio quartile, while Applied Industrial (AIT) at 25.10 is closer to its industry’s usual earnings multiple — a discount for NOC, though growth and earnings durability still matter.

AIT

Capital Goods industry group

25.10

Max: 59.38
Q3: 35.92
Median: 25.41
AIT: 25.10
Q1: 19.47
Min: 3.03

NOC

Capital Goods industry group

16.57

Max: 59.38
Q3: 35.92
Median: 25.41
Q1: 19.47
NOC: 16.57
Min: 3.03

Applied Industrial (AIT) vs. Northrop Grumman (NOC): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Applied Industrial (AIT) at 2.05 and Northrop Grumman (NOC) at 1.71 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

AIT

Capital Goods industry group

2.05

Max: 7.54
Q3: 3.76
Median: 2.15
AIT: 2.05
Q1: 1.03
Min: 0.03

NOC

Capital Goods industry group

1.71

Max: 7.54
Q3: 3.76
Median: 2.15
NOC: 1.71
Q1: 1.03
Min: 0.03

Applied Industrial (AIT) vs. Northrop Grumman (NOC): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Northrop Grumman (NOC) at 3.99 is valued about in line with its industry on P/B ratio, while Applied Industrial (AIT) at 5.50 carries an above-peer premium to book — AIT is pricier on assets.

AIT

Capital Goods industry group

5.50

Max: 9.66
AIT: 5.50
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08

NOC

Capital Goods industry group

3.99

Max: 9.66
Q3: 5.00
NOC: 3.99
Median: 3.12
Q1: 1.81
Min: -1.08

Applied Industrial (AIT) vs. Northrop Grumman (NOC): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Applied Industrial (AIT) and Northrop Grumman (NOC)
Metric	AIT	NOC
P/E Ratio (TTM)	25.10	16.57
P/S Ratio (TTM)	2.05	1.71
P/B Ratio (MRQ)	5.50	3.99
Free Cash Flow Yield (TTM)	3.24%	4.21%