NOC vs. WSO.B: Northrop Grumman vs. Watsco Stock Comparison
How do Northrop Grumman (NOC) and Watsco (WSO.B) 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
Northrop Grumman (NOC) and Watsco (WSO.B) both fall under the Capital Goods industry group, but NOC is classified in Aerospace & Defense while WSO.B is classified in Trading Companies & Distributors.
| Profile Item | NOC | WSO.B |
|---|---|---|
| Name | Northrop Grumman Corporation | Watsco Inc. Class B Common Stock |
| Country/Region | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Capital Goods | Capital Goods |
| GICS Industry | Aerospace & Defense | Trading Companies & Distributors |
| GICS Sub-Industry | Aerospace & Defense | Trading Companies & Distributors |
| Market Capitalization | 74.59 billion USD | 12.92 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | December 31, 1981 | March 17, 1980 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | NOC | WSO.B |
|---|---|---|
| Total Return (1Y) | -3.34% | -11.21% |
| Total Return (3Y, Annualized) | 7.23% | -3.05% |
| Total Return (5Y, Annualized) | 9.98% | 4.30% |
Risk Profile
Drawdown History
Return Distribution
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. Watsco (WSO.B) has a non-negative beta of 0.64.
| Metric | NOC | WSO.B |
|---|---|---|
| Volatility (1Y, Annualized) | 28.86% | 40.28% |
| Beta (5Y) | -0.12 | 0.64 |
| Max Drawdown (5Y) | -37.80% | -43.41% |
| Avg. Volume (3M) | 902.47K | 74 |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | NOC | WSO.B |
|---|---|---|
| Sharpe Ratio (1Y) | -0.26 | -0.38 |
| Sortino Ratio (1Y) | -0.37 | -0.57 |
Profitability
ROE (TTM)
Northrop Grumman (NOC) at 26.07% sits in the top ROE quartile, while Watsco (WSO.B) at 16.21% is closer to the peer norm — stronger capital efficiency for NOC.
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%
WSO.B
Capital Goods industry group
16.21%
- Max
- 40.55%
- Q3
- 19.29%
- WSO.B
- 16.21%
- Median
- 12.12%
- Q1
- 4.08%
- Min
- -17.12%
Net Margin (TTM)
Both Northrop Grumman (NOC) at 10.37% and Watsco (WSO.B) at 6.31% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.
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%
WSO.B
Capital Goods industry group
6.31%
- Max
- 27.47%
- Q3
- 12.10%
- WSO.B
- 6.31%
- Median
- 6.30%
- Q1
- 1.40%
- Min
- -12.89%
Operating Margin (TTM)
Both Northrop Grumman (NOC) at 12.91% and Watsco (WSO.B) at 10.14% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.
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%
WSO.B
Capital Goods industry group
10.14%
- Max
- 36.60%
- Q3
- 18.33%
- Median
- 11.12%
- WSO.B
- 10.14%
- Q1
- 5.14%
- Min
- -12.63%
Profitability Metrics
| Metric | NOC | WSO.B |
|---|---|---|
| ROE (TTM) | 26.07% | 16.21% |
| ROA (TTM) | 7.11% | 8.27% |
| Net Margin (TTM) | 10.37% | 6.31% |
| Operating Margin (TTM) | 12.91% | 10.14% |
| Gross Margin (TTM) | 20.03% | 27.18% |
Growth
Revenue Growth
Northrop Grumman (NOC) at 2.24% is around its peer norm for revenue growth, while Watsco (WSO.B) at -4.98% drops into the bottom quartile, signaling weaker demand or pricing momentum.
EPS Growth
Both Northrop Grumman (NOC) at 2.61% and Watsco (WSO.B) at -7.47% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | NOC | WSO.B |
|---|---|---|
| Revenue Growth (YoY) | 2.24% | -4.98% |
| Revenue Growth (3Y CAGR) | 4.65% | -0.16% |
| EPS Growth (YoY) | 2.61% | -7.47% |
| EPS Growth (3Y CAGR) | -2.60% | -6.89% |
Financial Strength
Current Ratio (MRQ)
Watsco (WSO.B) at 3.15 carries current ratio above its industry’s typical mid-range, while Northrop Grumman (NOC) at 1.23 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.
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
WSO.B
Capital Goods industry group
3.15
- Max
- 5.22
- WSO.B
- 3.15
- Q3
- 2.95
- Median
- 2.08
- Q1
- 1.43
- Min
- 0.36
Debt / Equity (MRQ)
Watsco (WSO.B) at 0.16 keeps leverage in the lower industry quartile, while Northrop Grumman (NOC) at 0.93 runs a more typical debt-to-equity mix.
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
WSO.B
Capital Goods industry group
0.16
- Max
- 2.33
- Q3
- 1.12
- Median
- 0.60
- Q1
- 0.29
- WSO.B
- 0.16
- Min
- 0.00
Financial Strength Metrics
| Metric | NOC | WSO.B |
|---|---|---|
| Current Ratio (MRQ) | 1.23 | 3.15 |
| Debt / Equity (MRQ) | 0.93 | 0.16 |
| Net Debt / EBITDA | 1.87 | -0.14 |
Dividends
Dividend Yield (TTM)
Northrop Grumman (NOC) at 1.82% earns its spot in the top quartile of its industry’s yields; Watsco (WSO.B) at 4.02% is past the top of its own peer range — territory where a dividend-safety check matters more than the headline number.
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%
WSO.B
Capital Goods industry group
4.02%
- WSO.B
- 4.02%
- Max
- 2.66%
- Q3
- 1.14%
- Median
- 0.24%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Watsco (WSO.B) reports payout ratio above 100% at 109.66%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Northrop Grumman (NOC) reports 30.18%, ranking against industry peers normally.
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%
WSO.B
Capital Goods industry group
109.66%
- WSO.B
- 109.66%
- Max
- 67.39%
- Q3
- 28.02%
- Median
- 6.86%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | NOC | WSO.B |
|---|---|---|
| Dividend Yield (TTM) | 1.82% | 4.02% |
| Dividend Payout Ratio (TTM) | 30.18% | 109.66% |
Valuation
P/E Ratio (TTM)
Northrop Grumman (NOC) at 16.57 sits in the cheaper P/E ratio quartile, while Watsco (WSO.B) at 27.26 is closer to its industry’s usual earnings multiple — a discount for NOC, though growth and earnings durability still matter.
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
WSO.B
Capital Goods industry group
27.26
- Max
- 59.38
- Q3
- 35.92
- WSO.B
- 27.26
- Median
- 25.41
- Q1
- 19.47
- Min
- 3.03
P/S Ratio (TTM)
On P/S ratio, both Northrop Grumman (NOC) at 1.71 and Watsco (WSO.B) at 1.74 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.
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
WSO.B
Capital Goods industry group
1.74
- Max
- 7.54
- Q3
- 3.76
- Median
- 2.15
- WSO.B
- 1.74
- Q1
- 1.03
- Min
- 0.03
P/B Ratio (MRQ)
On P/B ratio, both Northrop Grumman (NOC) at 3.99 and Watsco (WSO.B) at 3.99 are valued close to their industries’ norm against book — neither stands out from peers.
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
WSO.B
Capital Goods industry group
3.99
- Max
- 9.66
- Q3
- 5.00
- WSO.B
- 3.99
- Median
- 3.12
- Q1
- 1.81
- Min
- -1.08
Valuation Metrics
| Metric | NOC | WSO.B |
|---|---|---|
| P/E Ratio (TTM) | 16.57 | 27.26 |
| P/S Ratio (TTM) | 1.71 | 1.74 |
| P/B Ratio (MRQ) | 3.99 | 3.99 |
| Free Cash Flow Yield (TTM) | 4.21% | 3.50% |