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 $133.1B against $96.3B — 1.4× the size. Lockheed Martin Corporation trades at the lower P/E: 20.0× against 20.5×. General Dynamics Corporation grew revenue faster over the last twelve months: 9.73% against 7.86%. General Dynamics Corporation has the higher net margin (8.24% vs 8.23%) and the lower return on invested capital (12.2% vs 23.7%). Both pay a dividend; Lockheed Martin Corporation yields more (2.44% vs 1.78%). Across the 23 metrics below, Lockheed Martin Corporation leads on 12 and General Dynamics Corporation on 11.

Valuation

Metric GD LMT Aerospace & Defense median
P/E 20.50 20.01 29.42
P/S 1.69 1.65 3.05
P/B 3.50 12.96 2.91
Price to free cash flow 16.51 15.56 29.52
EV/EBITDA 14.40 13.19 17.23
EV/Sales 1.73 1.83 3.25
Earnings yield 4.88% 5.00% 0.95%
Free cash flow yield 6.06% 6.43% 0.00%

Profitability

Metric GD LMT Aerospace & Defense median
Gross margin 14.14% 11.73% 26.41%
Operating margin 10.37% 11.78% 3.69%
Net margin 8.24% 8.23% 2.74%
Free cash flow margin 10.22% 10.59% 0.73%
Return on equity 18.01% 80.19% 5.39%
Return on assets 7.91% 10.44% 2.18%
Return on invested capital 12.24% 23.67% 0.64%

Growth

Metric GD LMT Aerospace & Defense median
Revenue growth (TTM) 9.73% 7.86% 18.03%
EPS growth (last fiscal year) 13.43% (3.68%) 24.80%
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 0.26 2.04 0.18
Current ratio 1.43 1.26 2.85
Net debt to EBITDA 0.90 1.87 1.29

Dividend

Metric GD LMT Aerospace & Defense median
Dividend yield 1.78% 2.44% 0.89%
Payout ratio 0.37 0.49 0.30

Size

Metric GD LMT Aerospace & Defense median
Market cap 96.29b 133.10b 1.52b

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