General Dynamics Corporation (GD) vs L3Harris Technologies Inc (LHX)

General Dynamics Corporation and L3Harris Technologies Inc are both Aerospace & Defense companies. General Dynamics Corporation is the larger, with a market value of $96.3B against $48.1B — 2.0× the size. General Dynamics Corporation trades at the lower P/E: 20.7× against 23.8×. General Dynamics Corporation grew revenue faster over the last twelve months: 9.73% against 7.33%. L3Harris Technologies Inc has the higher net margin (8.62% vs 8.24%) and the lower return on invested capital (5.69% vs 12.2%). Both pay a dividend; L3Harris Technologies Inc yields more (1.91% vs 1.76%). Across the 23 metrics below, General Dynamics Corporation leads on 14 and L3Harris Technologies Inc on 9.

Valuation

Metric GD LHX Aerospace & Defense median
P/E 20.71 23.79 28.48
P/S 1.71 2.07 2.95
P/B 3.53 2.38 2.68
Price to free cash flow 16.69 13.20 31.70
EV/EBITDA 14.55 14.77 16.85
EV/Sales 1.75 2.41 2.74
Earnings yield 4.83% 4.20% 0.89%
Free cash flow yield 5.99% 7.58% 0.00%

Profitability

Metric GD LHX Aerospace & Defense median
Gross margin 15.42% 25.55% 26.41%
Operating margin 10.37% 11.01% 3.69%
Net margin 8.24% 8.62% 2.74%
Free cash flow margin 10.22% 15.65% 0.00%
Return on equity 18.01% 10.11% 4.44%
Return on assets 7.91% 4.74% 1.90%
Return on invested capital 12.24% 5.69% 0.26%

Growth

Metric GD LHX Aerospace & Defense median
Revenue growth (TTM) 9.73% 7.33% 18.03%
EPS growth (last fiscal year) 13.43% 8.39% 24.80%
Revenue growth, 5-year CAGR 6.74% 3.74% 9.73%
Net income growth, 5-year CAGR 5.86% 7.49% 0.00%

Health

Metric GD LHX Aerospace & Defense median
Debt to equity 0.26 0.54 0.20
Current ratio 1.43 1.20 2.85
Net debt to EBITDA 0.90 2.68 1.29

Dividend

Metric GD LHX Aerospace & Defense median
Dividend yield 1.76% 1.91% 0.91%
Payout ratio 0.37 0.46 0.30

Size

Metric GD LHX Aerospace & Defense median
Market cap 96.29b 48.06b 1.78b

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