IntroductionThe purpose of this company analysis is to find out why it would be better to invest in one company over another. The analysis is based on two competing companies within the same industry. While these two companies compare in terms of products and services, they are not related in terms of overall size. To help make an educational decision, many areas of each company were examined. A comprehensive analysis of financial ratios was completed for each company, as well as an assessment of strengths, weaknesses and future opportunities. While it is important to consider how a company manages its finances, it is equally important to also consider its future prospects. Below you will find a brief description of each company and an evaluation of their performance. All this information will conclude with which company could be the best investment prospect. RaytheonRaytheon is a company specializing in defense, homeland security and other government markets globally. They are also one of the largest defense contractors in the world. The company has created a diverse product portfolio by managing its operations through six separate divisions. These divisions include: Missile Systems (MS), Integrated Defense Systems (IDS), Network Centric Systems (NCS), Space and Airborne Systems (SAS), Intelligence and Information Systems (IIS), and Technical Services (TS) (website by Raytheon). The ability to be so diversified is considered one of the company's main strengths. Another important benefit for the company is consistent financial performance. Raytheon has seen consistent increases in both revenue and gross profits in nearly every last four year. The company also reported a strong increase in its adjusted earnings... mid-paper......tp://www3.valueline.com.yosemite.wbu.edu/secure/vlispdf/stk1700/lookup .aspxGendler, I. (2011, June 17). The Value Line Investment Survey - Standard Edition - Research Company Reports. Value line. Retrieved July 24, 2011, from http://www3.valueline.com.yosemite.wbu.edu/secure/vlispdf/stk1700/lookup.aspxNorthrop Grumman Corporation. (2010, August 20). Datamonitor 360. Retrieved July 24, 2011, from http://360.datamonitor.com.yosemite.wbu.edu/Product?pid=9D3EC0C0-911A-4E88-9064-4359FF254A52Raytheon. (2010, August 19). Datamonitor 360. Retrieved July 24, 2011, from http://360.datamonitor.com.yosemite.wbu.edu/Product?pid=4B88005B-C9E0-41A1-B4DF-C98150C32ACRaytheon Company: Investor Relations: Financials. (2011, March 1). Raytheon Company: Investor Relations: . Retrieved July 24, 2011, from http://investor.raytheon.com/phoenix.zhtml?c=84193&p=irol-reportsannual