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 $253.9B against $91.2B — 2.8× the size. General Dynamics Corporation trades at the lower P/E: 20.3× against 32.9×. RTX Corporation grew revenue faster over the last twelve months: 11.8% against 9.13%. RTX Corporation has the higher net margin (8.28% vs 8.18%) and the lower return on invested capital (6.74% vs 11.8%). Both pay a dividend; RTX Corporation yields more (2.71% vs 2.08%). Across the 22 metrics below, General Dynamics Corporation leads on 15 and RTX Corporation on 7.

Valuation

Metric GD RTX Aerospace & Defense median
P/E 20.27 32.94 33.00
P/S 1.66 2.74 3.63
P/B 3.39 3.76 3.24
Price to free cash flow 14.11 23.29 34.01
EV/EBITDA 14.26 19.14 18.69
EV/Sales 1.72 3.05 3.94
Earnings yield 4.93% 3.04% 1.31%
Free cash flow yield 7.09% 4.29% 0.00%

Profitability

Metric GD RTX Aerospace & Defense median
Gross margin 15.38% 20.35% 25.48%
Operating margin 10.32% 11.21% 4.54%
Net margin 8.18% 8.28% 2.22%
Free cash flow margin 11.75% 11.75% 0.00%
Return on equity 17.80% 11.70% 6.43%
Return on assets 7.67% 4.54% 2.70%
Return on invested capital 11.79% 6.74% 1.56%

Growth

Metric GD RTX Aerospace & Defense median
Revenue growth (TTM) 9.13% 11.84% 18.43%
EPS growth (last fiscal year) 13.43% 39.72% —
Revenue growth, 5-year CAGR 6.74% 9.38% 9.62%
Net income growth, 5-year CAGR 5.86% 0.00% 0.00%

Health

Metric GD RTX Aerospace & Defense median
Debt to equity 0.28 0.55 0.24
Current ratio 1.44 1.01 2.72
Net debt to EBITDA 0.90 2.23 1.12

Dividend

Metric GD RTX Aerospace & Defense median
Dividend yield 2.08% 2.71% 1.04%
Payout ratio 0.42 0.59 0.00

Size

Metric GD RTX Aerospace & Defense median
Market cap 91.18b 253.92b 2.52b

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