General Dynamics Corporation (GD) vs Transdigm Group Incorporated (TDG)

General Dynamics Corporation and Transdigm Group Incorporated are both Aerospace & Defense companies. General Dynamics Corporation is the larger, with a market value of $96.3B against $65.7B — 1.5× the size. General Dynamics Corporation trades at the lower P/E: 20.7× against 36.1×. Transdigm Group Incorporated grew revenue faster over the last twelve months: 16.7% against 9.73%. Transdigm Group Incorporated has the higher net margin (19.1% vs 8.24%) and the higher return on invested capital (14.3% vs 12.2%). Only General Dynamics Corporation pays a dividend (1.76%). Across the 22 metrics below, General Dynamics Corporation leads on 11 and Transdigm Group Incorporated on 11.

Valuation

Metric GD TDG Aerospace & Defense median
P/E 20.71 36.15 28.48
P/S 1.71 6.83 2.95
P/B 3.53 n/m 2.68
Price to free cash flow 16.69 35.49 31.70
EV/EBITDA 14.55 19.55 16.85
EV/Sales 1.75 9.83 2.74
Earnings yield 4.83% 2.77% 0.89%
Free cash flow yield 5.99% 2.82% 0.00%

Profitability

Metric GD TDG Aerospace & Defense median
Gross margin 15.42% 59.56% 26.41%
Operating margin 10.37% 46.04% 3.69%
Net margin 8.24% 19.09% 2.74%
Free cash flow margin 10.22% 19.25% 0.00%
Return on equity 18.01% (25.83%) 4.44%
Return on assets 7.91% 7.73% 1.90%
Return on invested capital 12.24% 14.27% 0.26%

Growth

Metric GD TDG Aerospace & Defense median
Revenue growth (TTM) 9.73% 16.66% 18.03%
EPS growth (last fiscal year) 13.43% 25.21% 24.80%
Revenue growth, 5-year CAGR 6.74% 11.59% 9.73%
Net income growth, 5-year CAGR 5.86% 29.42% 0.00%

Health

Metric GD TDG Aerospace & Defense median
Debt to equity 0.26 (3.34) 0.20
Current ratio 1.43 3.02 2.85
Net debt to EBITDA 0.90 5.85 1.29

Dividend

Metric GD TDG Aerospace & Defense median
Dividend yield 1.76% 0.00% 0.91%
Payout ratio 0.37 0.00 0.30

Size

Metric GD TDG Aerospace & Defense median
Market cap 96.29b 65.73b 1.78b

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