President Biden has proposed an increase in the nation's defense spending to strengthen its military to deter any aggression by China. As such, we think Northrop Grumman (NOC) and Teledyne Technologies (NYSE:TDY) are well positioned to capitalize on the industry’s potential growth due to the boosted defense budget. But let’s find out which of these stocks is a better buy now. Let’s take a closer look.Northrop Grumman Corporation (NYSE:NOC) is an aerospace and defense company. It operates through four segments—aeronautics systems; defense systems; mission systems; and space systems. It provides systems, products, and solutions in aerospace, electronics, information systems, and technical services, and serves government and commercial customers worldwide.
Teledyne Technologies Incorporated (TDY) provides electronic and communication products for wireless and satellite systems. The company operates through four segments: instrumentation; digital imaging; aerospace and defense electronics; and engineered systems. It markets and sells its products and services through sales forces, third-party distributors, and commissioned sales representatives.
In the federal government’s fiscal 2022 budget, President Biden has proposed $715 billion for weapons programs and key national security priorities to address emerging threats from China. This spending should drive the growth of companies in the aerospace and defense industry. Indeed, the U.S. aerospace and defense market is expected to grow at a 2.4% CAGR over the next nine years to hit $550.78 billion by 2030.