General Dynamics Corporation (GD) vs Lockheed Martin Corporation (LMT)

General Dynamics Corporation and Lockheed Martin Corporation are both Aerospace & Defense companies. Lockheed Martin Corporation is the larger, with a market value of $122.9B against $91.2B — 1.3× the size. Lockheed Martin Corporation trades at the lower P/E: 20.3× against 20.7×. General Dynamics Corporation grew revenue faster over the last twelve months: 9.13% against 7.20%. General Dynamics Corporation has the higher net margin (8.18% vs 8.16%) and the lower return on invested capital (11.8% vs 22.4%). Both pay a dividend; Lockheed Martin Corporation yields more (2.50% vs 1.82%). Across the 23 metrics below, General Dynamics Corporation leads on 14 and Lockheed Martin Corporation on 9.

Valuation

Metric GD LMT Aerospace & Defense median
P/E 20.73 20.26 31.81
P/S 1.70 1.65 3.55
P/B 3.47 14.49 2.59
Price to free cash flow 14.43 14.56 31.99
EV/EBITDA 14.56 13.28 18.08
EV/Sales 1.75 1.87 3.37
Earnings yield 4.82% 4.94% 1.38%
Free cash flow yield 6.93% 6.87% 0.21%

Profitability

Metric GD LMT Aerospace & Defense median
Gross margin 15.38% 11.80% 25.48%
Operating margin 10.32% 11.88% 4.54%
Net margin 8.18% 8.16% 2.22%
Free cash flow margin 11.75% 11.33% 1.43%
Return on equity 17.80% 89.16% 6.43%
Return on assets 7.67% 10.36% 2.70%
Return on invested capital 11.79% 22.42% 1.56%

Growth

Metric GD LMT Aerospace & Defense median
Revenue growth (TTM) 9.13% 7.20% 18.43%
EPS growth (last fiscal year) 13.43% (3.68%) 24.27%
Revenue growth, 5-year CAGR 6.74% 2.79% 9.73%
Net income growth, 5-year CAGR 5.86% (5.99%) 0.00%

Health

Metric GD LMT Aerospace & Defense median
Debt to equity 0.28 2.34 0.24
Current ratio 1.44 1.19 2.72
Net debt to EBITDA 0.90 1.87 1.12

Dividend

Metric GD LMT Aerospace & Defense median
Dividend yield 1.82% 2.50% 0.90%
Payout ratio 0.38 0.51 0.32

Size

Metric GD LMT Aerospace & Defense median
Market cap 91.19b 122.93b 2.19b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack