Analyzing Inflection Point Acquisition (NASDAQ:IPAX) & Northrop Grumman (NYSE:NOC)

Inflection Point Acquisition (NASDAQ:IPAX – Get Rating) and Northrop Grumman (NYSE:NOC – Get Rating) are both industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.

Insider & Institutional Ownership

94.7% of Inflection Point Acquisition shares are owned by institutional investors. Comparatively, 84.3% of Northrop Grumman shares are owned by institutional investors. 0.3% of Northrop Grumman shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Inflection Point Acquisition and Northrop Grumman, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inflection Point Acquisition	0	0	1	0	3.00
Northrop Grumman	1	6	7	0	2.43

Inflection Point Acquisition presently has a consensus target price of $14.00, indicating a potential upside of 12.00%. Northrop Grumman has a consensus target price of $508.13, indicating a potential upside of 14.55%. Given Northrop Grumman’s higher possible upside, analysts plainly believe Northrop Grumman is more favorable than Inflection Point Acquisition.

Profitability

This table compares Inflection Point Acquisition and Northrop Grumman’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inflection Point Acquisition	N/A	-53.90%	-0.36%
Northrop Grumman	13.38%	28.29%	9.33%

Valuation and Earnings

This table compares Inflection Point Acquisition and Northrop Grumman’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inflection Point Acquisition	N/A	N/A	-$320,000.00	N/A	N/A
Northrop Grumman	$36.60 billion	1.84	$4.90 billion	$31.51	14.08

Northrop Grumman has higher revenue and earnings than Inflection Point Acquisition.

Risk & Volatility

Inflection Point Acquisition has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500. Comparatively, Northrop Grumman has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.

Summary

Northrop Grumman beats Inflection Point Acquisition on 9 of the 11 factors compared between the two stocks.

About Inflection Point Acquisition

(Get Rating)

Inflection Point Acquisition Corp. does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses in the consumer and technology industries. The company was incorporated in 2021 and is based in New York, New York.

About Northrop Grumman

(Get Rating)

Northrop Grumman Corp. engages in the provision of advanced aircraft systems. It operates through the following segments: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. The Aeronautics Systems segment is involved in the design, development, production, integration, sustainment, and modernization of advanced aircraft systems for the U.S. Air Force, the U.S. Navy, other U.S. government agencies, and international customers. The Defense Systems segment includes integrated battle management systems, weapons systems and aircraft, and mission systems sustainment and modernization. The Mission Systems segment offers advanced mission solutions and multifunction systems, primarily for the U.S. defense and intelligence community, and international customers. The Space Systems segment delivers end-to-end mission solutions through the design, development, integration, production and operation of space, missile defense, launch and strategic missile systems for national security, civil government, commercial, and international customers. The company was founded by John K. Northrop, Thomas V. Jones, and Kent Kresa in 1939 and is headquartered in Falls Church, VA.