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 $120.7B against $91.2B — 1.3× the size. Lockheed Martin Corporation trades at the lower P/E: 19.1× against 20.3×. 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 (2.99% vs 2.08%). Across the 23 metrics below, General Dynamics Corporation leads on 12 and Lockheed Martin Corporation on 11.

Valuation

Metric GD LMT Aerospace & Defense median
P/E 20.27 19.07 33.00
P/S 1.66 1.55 3.63
P/B 3.39 13.64 3.24
Price to free cash flow 14.11 13.70 34.01
EV/EBITDA 14.26 12.59 18.69
EV/Sales 1.72 1.77 3.94
Earnings yield 4.93% 5.24% 1.31%
Free cash flow yield 7.09% 7.30% 0.00%

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% 0.00%
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%) —
Revenue growth, 5-year CAGR 6.74% 2.79% 9.62%
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 2.08% 2.99% 1.04%
Payout ratio 0.42 0.43 0.00

Size

Metric GD LMT Aerospace & Defense median
Market cap 91.18b 120.73b 2.52b

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