General Dynamics Corporation (GD) vs Howmet Aerospace Inc. (HWM)

General Dynamics Corporation and Howmet Aerospace Inc. are both Aerospace & Defense companies. General Dynamics Corporation and Howmet Aerospace Inc. are of similar size ($91.7B and $91.2B). General Dynamics Corporation trades at the lower P/E: 20.3× against 49.9×. Howmet Aerospace Inc. grew revenue faster over the last twelve months: 18.1% against 9.13%. Howmet Aerospace Inc. has the higher net margin (20.5% vs 8.18%) and the higher return on invested capital (16.9% vs 11.8%). Both pay a dividend; General Dynamics Corporation yields more (2.08% vs 0.29%). Across the 23 metrics below, Howmet Aerospace Inc. leads on 12 and General Dynamics Corporation on 11.

Valuation

Metric GD HWM Aerospace & Defense median
P/E 20.27 49.89 33.00
P/S 1.66 10.20 3.63
P/B 3.39 16.22 3.24
Price to free cash flow 14.11 46.10 34.01
EV/EBITDA 14.26 34.48 18.69
EV/Sales 1.72 10.58 3.94
Earnings yield 4.93% 2.00% 1.31%
Free cash flow yield 7.09% 2.17% 0.00%

Profitability

Metric GD HWM Aerospace & Defense median
Gross margin 15.38% 36.03% 25.48%
Operating margin 10.32% 27.37% 4.54%
Net margin 8.18% 20.51% 2.22%
Free cash flow margin 11.75% 22.12% 0.00%
Return on equity 17.80% 34.89% 6.43%
Return on assets 7.67% 15.39% 2.70%
Return on invested capital 11.79% 16.91% 1.56%

Growth

Metric GD HWM Aerospace & Defense median
Revenue growth (TTM) 9.13% 18.08% 18.43%
EPS growth (last fiscal year) 13.43% 32.03% —
Revenue growth, 5-year CAGR 6.74% 9.43% 9.62%
Net income growth, 5-year CAGR 5.86% 42.20% 0.00%

Health

Metric GD HWM Aerospace & Defense median
Debt to equity 0.28 0.71 0.24
Current ratio 1.44 1.82 2.72
Net debt to EBITDA 0.90 0.99 1.12

Dividend

Metric GD HWM Aerospace & Defense median
Dividend yield 2.08% 0.29% 1.04%
Payout ratio 0.42 0.11 0.00

Size

Metric GD HWM Aerospace & Defense median
Market cap 91.18b 91.73b 2.52b

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