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GD vs GE

GD
General Dynamics Corporation
NEUTRAL
Price
$313.21
Market Cap
$84.83B
Sector
Industrials
AI Confidence
85%
GE
GE Aerospace
NEUTRAL
Price
$303.60
Market Cap
$320.24B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
GD
20.29
GE
37.71
Forward P/E
GD
17.43
GE
35.2
P/B Ratio
GD
3.3
GE
17.05
P/S Ratio
GD
1.61
GE
6.98
EV/EBITDA
GD
14.51
GE
30.66

Profitability

Gross Margin
GD
15.13%
GE
31.5%
Operating Margin
GD
10.14%
GE
19.55%
Profit Margin
GD
8.01%
GE
18.98%
ROE
GD
17.66%
GE
44.69%
ROA
GD
5.99%
GE
4.68%

Growth

Revenue Growth
GD
7.8%
GE
17.6%
Earnings Growth
GD
0.4%
GE
37.4%

Financial Health

Debt/Equity
GD
0.38
GE
1.14
Current Ratio
GD
1.44
GE
1.04
Quick Ratio
GD
0.78
GE
0.69

Dividends

Dividend Yield
GD
1.94%
GE
0.62%
Payout Ratio
GD
38.83%
GE
17.89%

AI Verdict

GD NEUTRAL

General Dynamics presents a dichotomy between fundamental stability and valuation extremes. While the Piotroski F-Score of 4/9 indicates stable financial health and the Debt/Equity ratio (0.38) is exceptionally low, the stock is trading at a significant premium to both its Graham Number ($181.57) and Intrinsic Value ($117.34). Stagnant earnings growth (0.40% YoY) and bearish insider activity, including sales by the CEO, offset the positive analyst consensus and long-term price performance.

Strengths
Very low Debt/Equity ratio (0.38) indicating strong solvency
Strong Return on Equity (ROE) of 17.66%
Consistent earnings track record with 3/4 beats in the last year
Risks
Significant overvaluation relative to Graham and Intrinsic value baselines
Stagnant earnings growth (0.40% YoY) failing to justify current P/E
Bearish insider sentiment with $17.93M in net sales, including CEO activity
GE NEUTRAL

GE Aerospace exhibits a stark divergence between its operational growth and its deterministic financial health, highlighted by a weak Piotroski F-Score of 3/9. While the company delivers impressive earnings growth (37.4% YoY) and high ROE (44.69%), it trades at a significant premium to both its Graham Number ($56.79) and Intrinsic Value ($237.48). The valuation is stretched with a PEG ratio of 5.24, suggesting that current price levels have priced in aggressive future success. Despite strong analyst 'strong_buy' recommendations, the combination of poor deterministic health and bearish insider activity warrants a cautious approach.

Strengths
Exceptional Return on Equity (ROE) of 44.69%
Strong earnings track record with consistent beats and high average surprise (25.12%)
Robust revenue growth (17.6% YoY) and earnings growth (37.4% YoY)
Risks
Weak deterministic health indicated by a Piotroski F-Score of 3/9
Extreme valuation metrics, specifically a PEG ratio of 5.24 and P/B of 17.05
Tight liquidity position with a Quick Ratio of 0.69

Compare Another Pair

GD vs GE: Head-to-Head Comparison

This page compares General Dynamics Corporation (GD) and GE Aerospace (GE) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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