The Boeing Company (BA) vs General Dynamics Corporation (GD)

The Boeing Company and General Dynamics Corporation are both Aerospace & Defense companies. The Boeing Company is the larger, with a market value of $136.7B against $96.3B — 1.4× the size. The Boeing Company trades at the lower P/E: 17.9× against 20.7×. The Boeing Company grew revenue faster over the last twelve months: 17.5% against 9.73%. General Dynamics Corporation has the higher net margin (8.24% vs 7.70%) and the lower return on invested capital (12.2% vs 19.2%). Across the 22 metrics below, General Dynamics Corporation leads on 13 and The Boeing Company on 9.

Valuation

Metric BA GD Aerospace & Defense median
P/E 17.89 20.71 28.48
P/S 1.44 1.71 2.95
P/B 20.90 3.53 2.68
Price to free cash flow 1,304.86 16.69 31.70
EV/EBITDA 13.49 14.55 16.85
EV/Sales 1.71 1.75 2.74
Earnings yield 5.59% 4.83% 0.89%
Free cash flow yield 0.08% 5.99% 0.00%

Profitability

Metric BA GD Aerospace & Defense median
Gross margin 9.42% 15.42% 26.41%
Operating margin 10.26% 10.37% 3.69%
Net margin 7.70% 8.24% 2.74%
Free cash flow margin 0.12% 10.22% 0.00%
Return on equity (858.49%) 18.01% 4.44%
Return on assets 4.56% 7.91% 1.90%
Return on invested capital 19.15% 12.24% 0.26%

Growth

Metric BA GD Aerospace & Defense median
Revenue growth (TTM) 17.53% 9.73% 18.03%
EPS growth (last fiscal year) 113.51% 13.43% 24.80%
Revenue growth, 5-year CAGR 9.00% 6.74% 9.73%
Net income growth, 5-year CAGR 0.00% 5.86% 0.00%

Health

Metric BA GD Aerospace & Defense median
Debt to equity 7.00 0.26 0.20
Current ratio 1.13 1.43 2.85
Net debt to EBITDA 3.96 0.90 1.29

Dividend

Metric BA GD Aerospace & Defense median
Dividend yield — 1.76% 0.91%
Payout ratio — 0.37 0.30

Size

Metric BA GD Aerospace & Defense median
Market cap 136.70b 96.29b 1.78b

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