General Dynamics Corporation (GD) vs Northrop Grumman Corporation (NOC)

General Dynamics Corporation and Northrop Grumman Corporation are both Aerospace & Defense companies. General Dynamics Corporation is the larger, with a market value of $91.2B against $71.0B — 1.3× the size. Northrop Grumman Corporation trades at the lower P/E: 16.5× against 20.7×. General Dynamics Corporation grew revenue faster over the last twelve months: 9.13% against 5.90%. Northrop Grumman Corporation has the higher net margin (10.5% vs 8.18%) and the lower return on invested capital (9.58% vs 11.8%). Both pay a dividend; Northrop Grumman Corporation yields more (1.84% vs 1.82%). Across the 23 metrics below, General Dynamics Corporation leads on 14 and Northrop Grumman Corporation on 9.

Valuation

Metric GD NOC Aerospace & Defense median
P/E 20.73 16.48 31.81
P/S 1.70 1.72 3.55
P/B 3.47 4.13 2.59
Price to free cash flow 14.43 20.26 31.99
EV/EBITDA 14.56 14.05 18.08
EV/Sales 1.75 2.00 3.37
Earnings yield 4.82% 6.07% 1.38%
Free cash flow yield 6.93% 4.94% 0.21%

Profitability

Metric GD NOC Aerospace & Defense median
Gross margin 15.38% 20.06% 25.48%
Operating margin 10.32% 10.72% 4.54%
Net margin 8.18% 10.48% 2.22%
Free cash flow margin 11.75% 8.50% 1.43%
Return on equity 17.80% 26.96% 6.43%
Return on assets 7.67% 8.97% 2.70%
Return on invested capital 11.79% 9.58% 1.56%

Growth

Metric GD NOC Aerospace & Defense median
Revenue growth (TTM) 9.13% 5.90% 18.43%
EPS growth (last fiscal year) 13.43% 2.61% 24.27%
Revenue growth, 5-year CAGR 6.74% 2.66% 9.73%
Net income growth, 5-year CAGR 5.86% 5.57% 0.00%

Health

Metric GD NOC Aerospace & Defense median
Debt to equity 0.28 0.81 0.24
Current ratio 1.44 1.17 2.72
Net debt to EBITDA 0.90 1.80 1.12

Dividend

Metric GD NOC Aerospace & Defense median
Dividend yield 1.82% 1.84% 0.90%
Payout ratio 0.38 0.30 0.32

Size

Metric GD NOC Aerospace & Defense median
Market cap 91.19b 70.98b 2.19b

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