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GD vs RTX

GD
General Dynamics Corporation
NEUTRAL
Price
$313.21
Market Cap
$84.83B
Sector
Industrials
AI Confidence
85%
RTX
RTX Corporation
NEUTRAL
Price
$195.79
Market Cap
$263.53B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
GD
20.29
RTX
39.39
Forward P/E
GD
17.43
RTX
26.01
P/B Ratio
GD
3.3
RTX
4.03
P/S Ratio
GD
1.61
RTX
2.97
EV/EBITDA
GD
14.51
RTX
20.17

Profitability

Gross Margin
GD
15.13%
RTX
20.08%
Operating Margin
GD
10.14%
RTX
11.02%
Profit Margin
GD
8.01%
RTX
7.6%
ROE
GD
17.66%
RTX
10.95%
ROA
GD
5.99%
RTX
3.88%

Growth

Revenue Growth
GD
7.8%
RTX
12.1%
Earnings Growth
GD
0.4%
RTX
8.3%

Financial Health

Debt/Equity
GD
0.38
RTX
0.6
Current Ratio
GD
1.44
RTX
1.03
Quick Ratio
GD
0.78
RTX
0.67

Dividends

Dividend Yield
GD
1.94%
RTX
1.39%
Payout Ratio
GD
38.83%
RTX
53.83%

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
RTX NEUTRAL

RTX exhibits stable financial health with a Piotroski F-Score of 5/9, yet it is trading at a severe premium compared to its Graham Number ($73.73) and Intrinsic Value ($96.67). While the company boasts an exceptional track record of earnings beats over 25 quarters and solid revenue growth, the valuation is stretched with a PEG ratio of 2.75. This fundamental overvaluation is compounded by bearish insider sentiment and a weak technical trend, suggesting that while the business is strong, the stock price is currently decoupled from its deterministic value.

Strengths
Exceptional earnings track record with consistent beats over 25 quarters
Strong revenue growth of 12.10% YoY
Conservative Debt/Equity ratio of 0.60
Risks
Significant overvaluation relative to Graham and Intrinsic value models
Bearish insider activity with $32.68M in sales by top executives
High PEG ratio (2.75) indicating price growth exceeds earnings growth

Compare Another Pair

GD vs RTX: Head-to-Head Comparison

This page compares General Dynamics Corporation (GD) and RTX Corporation (RTX) 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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