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

General Dynamics Corporation and Howmet Aerospace Inc. are both Aerospace & Defense companies. General Dynamics Corporation is the larger, with a market value of $96.3B against $79.9B — 1.2× the size. General Dynamics Corporation trades at the lower P/E: 20.5× against 40.2×. Howmet Aerospace Inc. grew revenue faster over the last twelve months: 22.0% against 9.73%. Howmet Aerospace Inc. has the higher net margin (21.1% vs 8.24%) and the higher return on invested capital (18.3% vs 12.2%). Both pay a dividend; General Dynamics Corporation yields more (1.78% vs 0.31%). 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 20.50 40.16 29.42
P/S 1.69 8.42 3.05
P/B 3.50 14.22 2.91
Price to free cash flow 16.51 37.99 29.52
EV/EBITDA 14.40 27.98 17.23
EV/Sales 1.73 8.78 3.25
Earnings yield 4.88% 2.49% 0.95%
Free cash flow yield 6.06% 2.63% 0.00%

Profitability

Metric GD HWM Aerospace & Defense median
Gross margin 14.14% 36.63% 26.41%
Operating margin 10.37% 28.05% 3.69%
Net margin 8.24% 21.10% 2.74%
Free cash flow margin 10.22% 22.16% 0.73%
Return on equity 18.01% 37.84% 5.39%
Return on assets 7.91% 16.79% 2.18%
Return on invested capital 12.24% 18.33% 0.64%

Growth

Metric GD HWM Aerospace & Defense median
Revenue growth (TTM) 9.73% 22.02% 18.03%
EPS growth (last fiscal year) 13.43% 32.03% 24.80%
Revenue growth, 5-year CAGR 6.74% 9.43% 9.73%
Net income growth, 5-year CAGR 5.86% 42.20% 0.00%

Health

Metric GD HWM Aerospace & Defense median
Debt to equity 0.26 0.70 0.18
Current ratio 1.43 1.86 2.85
Net debt to EBITDA 0.90 0.99 1.29

Dividend

Metric GD HWM Aerospace & Defense median
Dividend yield 1.78% 0.31% 0.89%
Payout ratio 0.37 0.13 0.30

Size

Metric GD HWM Aerospace & Defense median
Market cap 96.29b 79.89b 1.52b

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