General Dynamics Corporation (NYSE: GD) is one of 44 publicly-traded companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its peers? We will compare General Dynamics Corporation to related companies based on the strength of its analyst recommendations, dividends, valuation, institutional ownership, risk, profitability and earnings.

Earnings and Valuation

This table compares General Dynamics Corporation and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
General Dynamics Corporation $31.22 billion $4.89 billion 21.76
General Dynamics Corporation Competitors $8.56 billion $1.20 billion 81.43

General Dynamics Corporation has higher revenue and earnings than its peers. General Dynamics Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

86.2% of General Dynamics Corporation shares are held by institutional investors. Comparatively, 70.3% of shares of all “Aerospace & Defense” companies are held by institutional investors. 6.7% of General Dynamics Corporation shares are held by insiders. Comparatively, 7.1% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares General Dynamics Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Dynamics Corporation 9.63% 28.17% 9.31%
General Dynamics Corporation Competitors -5.04% 24.37% 3.84%

Dividends

General Dynamics Corporation pays an annual dividend of $3.36 per share and has a dividend yield of 1.6%. General Dynamics Corporation pays out 34.6% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.5% and pay out 36.1% of their earnings in the form of a dividend. General Dynamics Corporation has raised its dividend for 19 consecutive years. General Dynamics Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Risk & Volatility

General Dynamics Corporation has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, General Dynamics Corporation’s peers have a beta of 1.06, suggesting that their average share price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for General Dynamics Corporation and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Dynamics Corporation 1 3 8 0 2.58
General Dynamics Corporation Competitors 472 2090 2311 82 2.40

General Dynamics Corporation currently has a consensus target price of $208.58, suggesting a potential downside of 1.40%. As a group, “Aerospace & Defense” companies have a potential upside of 3.15%. Given General Dynamics Corporation’s peers higher possible upside, analysts clearly believe General Dynamics Corporation has less favorable growth aspects than its peers.

Summary

General Dynamics Corporation beats its peers on 10 of the 15 factors compared.

About General Dynamics Corporation

General Dynamics Corporation is a global aerospace and defense company. The Company offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; information technology (IT) services and C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) solutions, and shipbuilding and ship repair. It operates through four business groups: Aerospace, Combat Systems, Information Systems and Technology, and Marine Systems. Its Aerospace group offers aircraft design; cockpit and cabin systems, and product service and support. Its Combat Systems group offers combat vehicles, weapons systems and munitions. The Information Systems and Technology group provides technologies, products and services in support of various programs. The Marine Systems group is a designer and builder of nuclear-powered submarines, surface combatants and auxiliary and combat-logistics ships.

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