General Dynamics Corporation (GD) vs Rocket Lab Corporation (RKLB)

General Dynamics Corporation and Rocket Lab Corporation are both Aerospace & Defense companies. General Dynamics Corporation is the larger, with a market value of $91.2B against $44.8B — 2.0× the size. Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; General Dynamics Corporation trades at 20.3×. Rocket Lab Corporation grew revenue faster over the last twelve months: 52.5% against 9.13%. General Dynamics Corporation has the higher net margin (8.18% vs −21.5%) and the higher return on invested capital (11.8% vs −11.5%). Across the 19 metrics below, General Dynamics Corporation leads on 14 and Rocket Lab Corporation on 5.

Valuation

Metric GD RKLB Aerospace & Defense median
P/E 20.27 n/m 33.00
P/S 1.66 60.54 3.63
P/B 3.39 13.33 3.24
Price to free cash flow 14.11 n/m 34.01
EV/EBITDA 14.26 n/m 18.69
EV/Sales 1.72 57.61 3.94
Earnings yield 4.93% (0.37%) 1.31%
Free cash flow yield 7.09% (0.79%) 0.00%

Profitability

Metric GD RKLB Aerospace & Defense median
Gross margin 15.38% 37.26% 25.48%
Operating margin 10.32% (29.06%) 4.54%
Net margin 8.18% (21.51%) 2.22%
Free cash flow margin 11.75% (48.13%) 0.00%
Return on equity 17.80% (7.92%) 6.43%
Return on assets 7.67% (5.76%) 2.70%
Return on invested capital 11.79% (11.46%) 1.56%

Growth

Metric GD RKLB Aerospace & Defense median
Revenue growth (TTM) 9.13% 52.53% 18.43%
EPS growth (last fiscal year) 13.43% 2.63% —
Revenue growth, 5-year CAGR 6.74% 76.47% 9.62%
Net income growth, 5-year CAGR 5.86% 0.00% 0.00%

Health

Metric GD RKLB Aerospace & Defense median
Debt to equity 0.28 0.01 0.24
Current ratio 1.44 5.48 2.72
Net debt to EBITDA 0.90 4.66 1.12

Dividend

Metric GD RKLB Aerospace & Defense median
Dividend yield 2.08% — 1.04%
Payout ratio 0.42 0.00 0.00

Size

Metric GD RKLB Aerospace & Defense median
Market cap 91.18b 44.78b 2.52b

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