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 $91.2B against $44.8B — 2.0× the size. General Dynamics Corporation trades at the lower P/E: 20.7× against 25.0×. General Dynamics Corporation grew revenue faster over the last twelve months: 9.13% against 7.29%. General Dynamics Corporation has the higher net margin (8.18% vs 8.11%) and the higher return on invested capital (11.8% vs 5.12%). Both pay a dividend; L3Harris Technologies Inc yields more (1.99% vs 1.82%). Across the 23 metrics below, General Dynamics Corporation leads on 17 and L3Harris Technologies Inc on 6.

Valuation

Metric GD LHX Aerospace & Defense median
P/E 20.73 24.95 31.81
P/S 1.70 2.02 3.55
P/B 3.47 2.33 2.59
Price to free cash flow 14.43 16.49 31.99
EV/EBITDA 14.56 15.15 18.08
EV/Sales 1.75 2.43 3.37
Earnings yield 4.82% 4.01% 1.38%
Free cash flow yield 6.93% 6.06% 0.21%

Profitability

Metric GD LHX Aerospace & Defense median
Gross margin 15.38% 25.48% 25.48%
Operating margin 10.32% 10.49% 4.54%
Net margin 8.18% 8.11% 2.22%
Free cash flow margin 11.75% 12.24% 1.43%
Return on equity 17.80% 9.50% 6.43%
Return on assets 7.67% 4.42% 2.70%
Return on invested capital 11.79% 5.12% 1.56%

Growth

Metric GD LHX Aerospace & Defense median
Revenue growth (TTM) 9.13% 7.29% 18.43%
EPS growth (last fiscal year) 13.43% 8.39% 24.27%
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 0.28 0.55 0.24
Current ratio 1.44 1.18 2.72
Net debt to EBITDA 0.90 2.68 1.12

Dividend

Metric GD LHX Aerospace & Defense median
Dividend yield 1.82% 1.99% 0.90%
Payout ratio 0.38 0.50 0.32

Size

Metric GD LHX Aerospace & Defense median
Market cap 91.19b 44.78b 2.19b

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