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 $96.3B against $38.5B — 2.5× the size. General Dynamics Corporation trades at the lower P/E: 20.7× against 53.7×. Heico Corporation grew revenue faster over the last twelve months: 20.7% against 9.73%. Heico Corporation has the higher net margin (16.4% vs 8.24%) and the lower return on invested capital (10.6% vs 12.2%). Both pay a dividend; General Dynamics Corporation yields more (1.76% 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 20.71 53.72 28.48
P/S 1.71 8.81 2.95
P/B 3.53 9.08 2.68
Price to free cash flow 16.69 44.29 31.70
EV/EBITDA 14.55 32.78 16.85
EV/Sales 1.75 9.26 2.74
Earnings yield 4.83% 1.86% 0.89%
Free cash flow yield 5.99% 2.26% 0.00%

Profitability

Metric GD HEI Aerospace & Defense median
Gross margin 15.42% 40.40% 26.41%
Operating margin 10.37% 24.04% 3.69%
Net margin 8.24% 16.38% 2.74%
Free cash flow margin 10.22% 19.90% 0.00%
Return on equity 18.01% 18.35% 4.44%
Return on assets 7.91% 9.18% 1.90%
Return on invested capital 12.24% 10.62% 0.26%

Growth

Metric GD HEI Aerospace & Defense median
Revenue growth (TTM) 9.73% 20.69% 18.03%
EPS growth (last fiscal year) 13.43% 33.51% 24.80%
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 0.26 0.51 0.20
Current ratio 1.43 2.72 2.85
Net debt to EBITDA 0.90 1.61 1.29

Dividend

Metric GD HEI Aerospace & Defense median
Dividend yield 1.76% 0.08% 0.91%
Payout ratio 0.37 0.04 0.30

Size

Metric GD HEI Aerospace & Defense median
Market cap 96.29b 38.54b 1.78b

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