ESLT vs NOC: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: NOC is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ESLT and NOC share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ESLT and NOC exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Elbit Systems Ltd (Nasdaq and Tel Aviv: ESLT) is an Israel-based defense technology company that develops, manufactures, integrates and sustains military systems across land, sea, air, cyber and space domains. Its portfolio spans C4ISR (command, control and intelligence systems), electro-optics and thermal imaging, unmanned aerial and ground systems, precision munitions and artillery rockets (including its PULS launcher), helmet-mounted displays for pilots, and electronic warfare. The company employs more than 20,000 people across five continents and generates a large share of sales from export customers, with roughly 72% of its order backlog attributable to orders from outside Israel as of the end of 2025.

Full ESLT guide

Northrop Grumman is one of the largest US defense contractors, supplying advanced aerospace, defense, and security systems primarily to the US government and allied militaries. Its business is organized around four segments: Aeronautics Systems (military aircraft and the B-21 Raider stealth bomber), Space Systems (satellites, launch, and missile-defense and space sensors), Mission Systems (radars, electronic warfare, sensors, and networking), and Defense Systems (missiles, ammunition, and the ground-based strategic deterrent program modernizing US intercontinental ballistic missiles). Northrop is a leader in stealth aircraft, space systems, and strategic deterrence, holding key positions on programs that are central to long-term US defense priorities. Revenue is dominated by long-duration government contracts, providing visibility and a large multi-year backlog, though margins depend on program execution and the mix of fixed-price versus cost-plus work. As a prime contractor on strategic programs like the B-21 bomber and the Sentinel ICBM, Northrop is tied to defense-budget trends and great-power competition. Founded in 1939 (modern form from the 1994 Northrop-Grumman merger) and headquartered in Virginia, it is a large-cap defense and aerospace company that pays a growing dividend.

Full NOC guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• ESLT drivers: Record backlog and revenue visibility; European rearmament tailwind.
• NOC drivers: Strategic franchise programs; Large backlog and revenue visibility.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The most cited risk is valuation: ESLT trades at a trailing price-to-earnings ratio around the low-to-mid 60s, far above the industrials-sector average, so disappointing execution could compress the multiple sharply. For NOC, northrop depends heavily on the US government, so defense-budget cuts, continuing resolutions, or shifting priorities directly affect revenue.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick ESLT if you believe its drivers more; NOC if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the ESLT and NOC guides.

ESLT. As of July 2026, ESLT traded around $800 per share with a market cap in the mid-$30 billion range, valuing the company at roughly 63 times trailing earnings, well above the industrials-sector average near 30. The premium reflects a record backlog, double-digit revenue growth and strong free cash flow. The small dividend (about $2.70 per share annually) signals a growth-and-reinvestment profile rather than an income story.

NOC. Northrop trades at a valuation in line with large defense primes, reflecting backlog visibility, strategic-program leadership, and steady cash generation balanced against program-execution and budget risk. The multiple tends to expand during periods of rising defense budgets and geopolitical tension and compress when budget concerns or program charges weigh on sentiment. The dividend and buybacks support total return.

Headline figures (approximate, JULY 2026): ESLT shows revenue (fy2025) ~$7.9B, revenue growth (yoy) ~16%, gaap eps (fy2025) ~$11.39, order backlog (q1 2026) ~$30.2B; NOC shows revenue (ttm) ~$42 billion, operating margin ~10-11% (sensitive to program mix and charges), net income (ttm) ~$3.5-4 billion, eps (ttm) ~$25.

ESLT and NOC are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ESLT and NOC exposure against your real portfolio. It is not an investment adviser.