GD vs. NOC, TDG, BA, LMT, LHX, HEI, RTX, HII, TDY, and TXT
Should you be buying General Dynamics stock or one of its competitors? The main competitors of General Dynamics include Northrop Grumman (NOC), TransDigm Group (TDG), Boeing (BA), Lockheed Martin (LMT), L3Harris Technologies (LHX), HEICO (HEI), RTX (RTX), Huntington Ingalls Industries (HII), Teledyne Technologies (TDY), and Textron (TXT). These companies are all part of the "aerospace" sector.
General Dynamics (NYSE:GD) and Northrop Grumman (NYSE:NOC) are both large-cap aerospace companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, community ranking, profitability, valuation, risk, earnings, media sentiment and dividends.
86.1% of General Dynamics shares are owned by institutional investors. Comparatively, 83.4% of Northrop Grumman shares are owned by institutional investors. 1.6% of General Dynamics shares are owned by insiders. Comparatively, 0.2% of Northrop Grumman shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
In the previous week, General Dynamics had 23 more articles in the media than Northrop Grumman. MarketBeat recorded 65 mentions for General Dynamics and 42 mentions for Northrop Grumman. Northrop Grumman's average media sentiment score of 0.84 beat General Dynamics' score of 0.64 indicating that Northrop Grumman is being referred to more favorably in the news media.
General Dynamics received 288 more outperform votes than Northrop Grumman when rated by MarketBeat users. Likewise, 69.52% of users gave General Dynamics an outperform vote while only 62.39% of users gave Northrop Grumman an outperform vote.
General Dynamics has a net margin of 7.85% compared to Northrop Grumman's net margin of 5.38%. Northrop Grumman's return on equity of 24.09% beat General Dynamics' return on equity.
General Dynamics has higher revenue and earnings than Northrop Grumman. General Dynamics is trading at a lower price-to-earnings ratio than Northrop Grumman, indicating that it is currently the more affordable of the two stocks.
General Dynamics has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Northrop Grumman has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.
General Dynamics pays an annual dividend of $5.68 per share and has a dividend yield of 2.0%. Northrop Grumman pays an annual dividend of $7.48 per share and has a dividend yield of 1.5%. General Dynamics pays out 46.3% of its earnings in the form of a dividend. Northrop Grumman pays out 52.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. General Dynamics is clearly the better dividend stock, given its higher yield and lower payout ratio.
General Dynamics currently has a consensus price target of $297.06, indicating a potential upside of 3.05%. Northrop Grumman has a consensus price target of $503.00, indicating a potential upside of 3.81%. Given Northrop Grumman's higher possible upside, analysts plainly believe Northrop Grumman is more favorable than General Dynamics.
Summary
General Dynamics beats Northrop Grumman on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding GD and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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