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GE vs LHX

GE
GE Aerospace
NEUTRAL
Price
$303.60
Market Cap
$320.24B
Sector
Industrials
AI Confidence
85%
LHX
L3Harris Technologies, Inc.
NEUTRAL
Price
$324.88
Market Cap
$60.68B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
GE
37.71
LHX
38.04
Forward P/E
GE
35.2
LHX
24.06
P/B Ratio
GE
17.05
LHX
3.16
P/S Ratio
GE
6.98
LHX
4.72
EV/EBITDA
GE
30.66
LHX
36.76

Profitability

Gross Margin
GE
31.5%
LHX
30.41%
Operating Margin
GE
19.55%
LHX
9.73%
Profit Margin
GE
18.98%
LHX
10.37%
ROE
GE
44.69%
LHX
--
ROA
GE
4.68%
LHX
--

Growth

Revenue Growth
GE
17.6%
LHX
190.0%
Earnings Growth
GE
37.4%
LHX
-6.1%

Financial Health

Debt/Equity
GE
1.14
LHX
0.35
Current Ratio
GE
1.04
LHX
--
Quick Ratio
GE
0.69
LHX
--

Dividends

Dividend Yield
GE
0.62%
LHX
1.54%
Payout Ratio
GE
17.89%
LHX
56.27%

AI Verdict

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
LHX NEUTRAL

LHX exhibits strong fundamental health with a Piotroski F-Score of 7/9 and a conservative Debt/Equity ratio of 0.35. However, the stock is trading at a significant premium, with a current price of $324.88 far exceeding both the Graham Number ($140.53) and the growth-based Intrinsic Value ($59.78). While a massive $38.7 billion contractual backlog provides excellent revenue visibility, negative YoY earnings growth and bearish insider activity temper the bullish analyst consensus. The overall profile is that of a high-quality company currently priced for perfection.

Strengths
Strong financial health indicated by a Piotroski F-Score of 7/9
Substantial contractual backlog of $38.7 billion ensuring long-term revenue visibility
Very low leverage with a Debt/Equity ratio of 0.35
Risks
Severe valuation gap between current price and deterministic fair value models
Negative Year-over-Year earnings growth (-6.10%)
Bearish insider sentiment with consistent selling and zero buying activity

Compare Another Pair

GE vs LHX: Head-to-Head Comparison

This page compares GE Aerospace (GE) and L3Harris Technologies, Inc. (LHX) 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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