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 $91.2B against $61.3B — 1.5× the size. General Dynamics Corporation trades at the lower P/E: 20.3× against 33.9×. Transdigm Group Incorporated grew revenue faster over the last twelve months: 16.7% against 9.13%. Transdigm Group Incorporated has the higher net margin (19.1% vs 8.18%) and the higher return on invested capital (14.3% vs 11.8%). Across the 21 metrics below, Transdigm Group Incorporated leads on 12 and General Dynamics Corporation on 9.

Valuation

Metric GD TDG Aerospace & Defense median
P/E 20.27 33.87 33.00
P/S 1.66 6.40 3.63
P/B 3.39 n/m 3.24
Price to free cash flow 14.11 33.25 34.01
EV/EBITDA 14.26 18.69 18.69
EV/Sales 1.72 9.40 3.94
Earnings yield 4.93% 2.95% 1.31%
Free cash flow yield 7.09% 3.01% 0.00%

Profitability

Metric GD TDG Aerospace & Defense median
Gross margin 15.38% 59.56% 25.48%
Operating margin 10.32% 46.04% 4.54%
Net margin 8.18% 19.09% 2.22%
Free cash flow margin 11.75% 19.25% 0.00%
Return on equity 17.80% (25.83%) 6.43%
Return on assets 7.67% 7.73% 2.70%
Return on invested capital 11.79% 14.27% 1.56%

Growth

Metric GD TDG Aerospace & Defense median
Revenue growth (TTM) 9.13% 16.66% 18.43%
EPS growth (last fiscal year) 13.43% 25.21% —
Revenue growth, 5-year CAGR 6.74% 11.59% 9.62%
Net income growth, 5-year CAGR 5.86% 29.42% 0.00%

Health

Metric GD TDG Aerospace & Defense median
Debt to equity 0.28 (3.34) 0.24
Current ratio 1.44 3.02 2.72
Net debt to EBITDA 0.90 5.85 1.12

Dividend

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

Size

Metric GD TDG Aerospace & Defense median
Market cap 91.18b 61.30b 2.52b

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