General Dynamics Corporation (GD) vs RTX Corporation (RTX)

General Dynamics Corporation and RTX Corporation are both Aerospace & Defense companies. RTX Corporation is the larger, with a market value of $258.9B against $96.3B — 2.7× the size. General Dynamics Corporation trades at the lower P/E: 20.7× against 30.9×. RTX Corporation grew revenue faster over the last twelve months: 11.6% against 9.73%. RTX Corporation has the higher net margin (8.75% vs 8.24%) and the lower return on invested capital (7.12% vs 12.2%). Both pay a dividend; General Dynamics Corporation yields more (1.76% vs 1.47%). Across the 23 metrics below, General Dynamics Corporation leads on 17 and RTX Corporation on 6.

Valuation

Metric GD RTX Aerospace & Defense median
P/E 20.71 30.88 28.48
P/S 1.71 2.71 2.95
P/B 3.53 3.67 2.68
Price to free cash flow 16.69 28.50 31.70
EV/EBITDA 14.55 18.39 16.85
EV/Sales 1.75 3.00 2.74
Earnings yield 4.83% 3.24% 0.89%
Free cash flow yield 5.99% 3.51% 0.00%

Profitability

Metric GD RTX Aerospace & Defense median
Gross margin 15.42% 21.10% 26.41%
Operating margin 10.37% 11.77% 3.69%
Net margin 8.24% 8.75% 2.74%
Free cash flow margin 10.22% 9.51% 0.00%
Return on equity 18.01% 12.24% 4.44%
Return on assets 7.91% 4.87% 1.90%
Return on invested capital 12.24% 7.12% 0.26%

Growth

Metric GD RTX Aerospace & Defense median
Revenue growth (TTM) 9.73% 11.63% 18.03%
EPS growth (last fiscal year) 13.43% 39.72% 24.80%
Revenue growth, 5-year CAGR 6.74% 9.38% 9.73%
Net income growth, 5-year CAGR 5.86% 0.00% 0.00%

Health

Metric GD RTX Aerospace & Defense median
Debt to equity 0.26 0.53 0.20
Current ratio 1.43 1.05 2.85
Net debt to EBITDA 0.90 2.23 1.29

Dividend

Metric GD RTX Aerospace & Defense median
Dividend yield 1.76% 1.47% 0.91%
Payout ratio 0.37 0.46 0.30

Size

Metric GD RTX Aerospace & Defense median
Market cap 96.29b 258.93b 1.78b

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