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 $333.1B against $91.2B — 3.7× the size. General Dynamics Corporation trades at the lower P/E: 20.3× against 38.2×. GE Aerospace grew revenue faster over the last twelve months: 21.7% against 9.13%. GE Aerospace has the higher net margin (17.7% vs 8.18%) and the higher return on invested capital (26.5% vs 11.8%). Both pay a dividend; General Dynamics Corporation yields more (2.08% vs 0.29%). 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 20.27 38.21 33.00
P/S 1.66 6.72 3.63
P/B 3.39 19.04 3.24
Price to free cash flow 14.11 49.62 34.01
EV/EBITDA 14.26 26.96 18.69
EV/Sales 1.72 6.91 3.94
Earnings yield 4.93% 2.62% 1.31%
Free cash flow yield 7.09% 2.02% 0.00%

Profitability

Metric GD GE Aerospace & Defense median
Gross margin 15.38% 35.38% 25.48%
Operating margin 10.32% 23.20% 4.54%
Net margin 8.18% 17.72% 2.22%
Free cash flow margin 11.75% 16.89% 0.00%
Return on equity 17.80% 48.22% 6.43%
Return on assets 7.67% 7.09% 2.70%
Return on invested capital 11.79% 26.53% 1.56%

Growth

Metric GD GE Aerospace & Defense median
Revenue growth (TTM) 9.13% 21.69% 18.43%
EPS growth (last fiscal year) 13.43% 35.89% —
Revenue growth, 5-year CAGR 6.74% (9.57%) 9.62%
Net income growth, 5-year CAGR 5.86% 10.72% 0.00%

Health

Metric GD GE Aerospace & Defense median
Debt to equity 0.28 1.07 0.24
Current ratio 1.44 0.98 2.72
Net debt to EBITDA 0.90 0.65 1.12

Dividend

Metric GD GE Aerospace & Defense median
Dividend yield 2.08% 0.29% 1.04%
Payout ratio 0.42 0.03 0.00

Size

Metric GD GE Aerospace & Defense median
Market cap 91.18b 333.06b 2.52b

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