General Dynamics Corporation (GD) vs Heico Corporation (HEI)

General Dynamics Corporation and Heico Corporation are both Aerospace & Defense companies. General Dynamics Corporation is the larger, with a market value of $91.2B against $36.7B — 2.5× the size. General Dynamics Corporation trades at the lower P/E: 20.7× against 51.0×. Heico Corporation grew revenue faster over the last twelve months: 20.7% against 9.13%. Heico Corporation has the higher net margin (16.4% vs 8.18%) and the lower return on invested capital (10.6% vs 11.8%). Both pay a dividend; General Dynamics Corporation yields more (1.82% vs 0.08%). Across the 23 metrics below, General Dynamics Corporation leads on 12 and Heico Corporation on 11.

Valuation

Metric GD HEI Aerospace & Defense median
P/E 20.73 50.97 31.81
P/S 1.70 8.36 3.55
P/B 3.47 8.61 2.59
Price to free cash flow 14.43 42.02 31.99
EV/EBITDA 14.56 31.18 18.08
EV/Sales 1.75 8.81 3.37
Earnings yield 4.82% 1.96% 1.38%
Free cash flow yield 6.93% 2.38% 0.21%

Profitability

Metric GD HEI Aerospace & Defense median
Gross margin 15.38% 40.40% 25.48%
Operating margin 10.32% 24.04% 4.54%
Net margin 8.18% 16.38% 2.22%
Free cash flow margin 11.75% 19.90% 1.43%
Return on equity 17.80% 18.35% 6.43%
Return on assets 7.67% 9.18% 2.70%
Return on invested capital 11.79% 10.62% 1.56%

Growth

Metric GD HEI Aerospace & Defense median
Revenue growth (TTM) 9.13% 20.69% 18.43%
EPS growth (last fiscal year) 13.43% 33.51% 24.27%
Revenue growth, 5-year CAGR 6.74% 20.21% 9.73%
Net income growth, 5-year CAGR 5.86% 17.07% 0.00%

Health

Metric GD HEI Aerospace & Defense median
Debt to equity 0.28 0.51 0.24
Current ratio 1.44 2.72 2.72
Net debt to EBITDA 0.90 1.61 1.12

Dividend

Metric GD HEI Aerospace & Defense median
Dividend yield 1.82% 0.08% 0.90%
Payout ratio 0.38 0.04 0.32

Size

Metric GD HEI Aerospace & Defense median
Market cap 91.19b 36.66b 2.19b

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