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 $156.4B against $91.2B — 1.7× the size. General Dynamics Corporation trades at the lower P/E: 20.3× against 74.2×. The Boeing Company grew revenue faster over the last twelve months: 24.8% against 9.13%. General Dynamics Corporation has the higher net margin (8.18% vs 2.22%) and the higher return on invested capital (11.8% vs 8.99%). Both pay a dividend; General Dynamics Corporation yields more (2.08% vs 0.16%). Across the 22 metrics below, General Dynamics Corporation leads on 18 and The Boeing Company on 4.

Valuation

Metric BA GD Aerospace & Defense median
P/E 74.18 20.27 33.00
P/S 1.67 1.66 3.63
P/B 25.63 3.39 3.24
Price to free cash flow n/m 14.11 34.01
EV/EBITDA 26.85 14.26 18.69
EV/Sales 1.94 1.72 3.94
Earnings yield 1.35% 4.93% 1.31%
Free cash flow yield (0.09%) 7.09% 0.00%

Profitability

Metric BA GD Aerospace & Defense median
Gross margin 4.68% 15.38% 25.48%
Operating margin 4.89% 10.32% 4.54%
Net margin 2.22% 8.18% 2.22%
Free cash flow margin (0.14%) 11.75% 0.00%
Return on equity 148.84% 17.80% 6.43%
Return on assets 1.30% 7.67% 2.70%
Return on invested capital 8.99% 11.79% 1.56%

Growth

Metric BA GD Aerospace & Defense median
Revenue growth (TTM) 24.78% 9.13% 18.43%
EPS growth (last fiscal year) 113.51% 13.43% —
Revenue growth, 5-year CAGR 9.00% 6.74% 9.62%
Net income growth, 5-year CAGR 0.00% 5.86% 0.00%

Health

Metric BA GD Aerospace & Defense median
Debt to equity 7.51 0.28 0.24
Current ratio 1.14 1.44 2.72
Net debt to EBITDA 3.96 0.90 1.12

Dividend

Metric BA GD Aerospace & Defense median
Dividend yield 0.16% 2.08% 1.04%
Payout ratio 0.00 0.42 0.00

Size

Metric BA GD Aerospace & Defense median
Market cap 156.38b 91.18b 2.52b

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