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 $36.3B — 2.5× the size. General Dynamics Corporation trades at the lower P/E: 20.3× against 50.7×. 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 (2.08% vs 0.13%). 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 20.27 50.75 33.00
P/S 1.66 8.33 3.63
P/B 3.39 8.58 3.24
Price to free cash flow 14.11 41.84 34.01
EV/EBITDA 14.26 31.05 18.69
EV/Sales 1.72 8.77 3.94
Earnings yield 4.93% 1.97% 1.31%
Free cash flow yield 7.09% 2.39% 0.00%

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% 0.00%
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% —
Revenue growth, 5-year CAGR 6.74% 20.21% 9.62%
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 2.08% 0.13% 1.04%
Payout ratio 0.42 0.07 0.00

Size

Metric GD HEI Aerospace & Defense median
Market cap 91.18b 36.31b 2.52b

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