General Dynamics Corporation (GD) vs GE Aerospace (GE)

General Dynamics Corporation and GE Aerospace are both Aerospace & Defense companies. GE Aerospace is the larger, with a market value of $325.2B against $96.3B — 3.4× the size. General Dynamics Corporation trades at the lower P/E: 20.7× against 36.0×. GE Aerospace grew revenue faster over the last twelve months: 19.6% against 9.73%. GE Aerospace has the higher net margin (17.3% vs 8.24%) and the higher return on invested capital (27.4% vs 12.2%). Both pay a dividend; General Dynamics Corporation yields more (1.76% vs 0.56%). Across the 23 metrics below, General Dynamics Corporation leads on 13 and GE Aerospace on 10.

Valuation

Metric GD GE Aerospace & Defense median
P/E 20.71 35.97 28.48
P/S 1.71 6.18 2.95
P/B 3.53 18.31 2.68
Price to free cash flow 16.69 49.64 31.70
EV/EBITDA 14.55 24.57 16.85
EV/Sales 1.75 6.38 2.74
Earnings yield 4.83% 2.78% 0.89%
Free cash flow yield 5.99% 2.01% 0.00%

Profitability

Metric GD GE Aerospace & Defense median
Gross margin 15.42% 35.22% 26.41%
Operating margin 10.37% 23.56% 3.69%
Net margin 8.24% 17.31% 2.74%
Free cash flow margin 10.22% 15.68% 0.00%
Return on equity 18.01% 49.51% 4.44%
Return on assets 7.91% 7.13% 1.90%
Return on invested capital 12.24% 27.35% 0.26%

Growth

Metric GD GE Aerospace & Defense median
Revenue growth (TTM) 9.73% 19.62% 18.03%
EPS growth (last fiscal year) 13.43% 35.89% 24.80%
Revenue growth, 5-year CAGR 6.74% (9.57%) 9.73%
Net income growth, 5-year CAGR 5.86% 10.72% 0.00%

Health

Metric GD GE Aerospace & Defense median
Debt to equity 0.26 1.09 0.20
Current ratio 1.43 0.98 2.85
Net debt to EBITDA 0.90 0.65 1.29

Dividend

Metric GD GE Aerospace & Defense median
Dividend yield 1.76% 0.56% 0.91%
Payout ratio 0.37 0.20 0.30

Size

Metric GD GE Aerospace & Defense median
Market cap 96.29b 325.23b 1.78b

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