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 $96.3B against $74.6B — 1.3× the size. Northrop Grumman Corporation trades at the lower P/E: 16.5× against 20.5×. General Dynamics Corporation grew revenue faster over the last twelve months: 9.73% against 6.51%. Northrop Grumman Corporation has the higher net margin (10.4% vs 8.24%) and the lower return on invested capital (9.84% vs 12.2%). Both pay a dividend; Northrop Grumman Corporation yields more (1.82% vs 1.78%). 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 20.50 16.51 29.42
P/S 1.69 1.71 3.05
P/B 3.50 3.99 2.91
Price to free cash flow 16.51 17.74 29.52
EV/EBITDA 14.40 13.86 17.23
EV/Sales 1.73 1.95 3.25
Earnings yield 4.88% 6.06% 0.95%
Free cash flow yield 6.06% 5.64% 0.00%

Profitability

Metric GD NOC Aerospace & Defense median
Gross margin 14.14% 20.02% 26.41%
Operating margin 10.37% 10.61% 3.69%
Net margin 8.24% 10.37% 2.74%
Free cash flow margin 10.22% 9.64% 0.73%
Return on equity 18.01% 26.07% 5.39%
Return on assets 7.91% 8.88% 2.18%
Return on invested capital 12.24% 9.84% 0.64%

Growth

Metric GD NOC Aerospace & Defense median
Revenue growth (TTM) 9.73% 6.51% 18.03%
EPS growth (last fiscal year) 13.43% 2.61% 24.80%
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 0.26 0.77 0.18
Current ratio 1.43 1.23 2.85
Net debt to EBITDA 0.90 1.80 1.29

Dividend

Metric GD NOC Aerospace & Defense median
Dividend yield 1.78% 1.82% 0.89%
Payout ratio 0.37 0.30 0.30

Size

Metric GD NOC Aerospace & Defense median
Market cap 96.29b 74.62b 1.52b

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