WallStSmart

General Dynamics Corporation (GD)vsGE Aerospace (GE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

General Dynamics Corporation generates 15% more annual revenue ($52.55B vs $45.85B). GE leads profitability with a 19.0% profit margin vs 8.0%. GD appears more attractively valued with a PEG of 2.54. GE earns a higher WallStSmart Score of 65/100 (C+).

GD

Buy

54

out of 100

Grade: C-

Growth: 8.0Profit: 6.5Value: 4.7Quality: 7.5
Piotroski: 6/9Altman Z: 2.95

GE

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 6.7Quality: 5.3
Piotroski: 4/9Altman Z: 1.69
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GDSignificantly Overvalued (-210.6%)

Margin of Safety

-210.6%

Fair Value

$115.54

Current Price

$353.36

$237.82 premium

UndervaluedFair: $115.54Overvalued
GEUndervalued (+22.7%)

Margin of Safety

+22.7%

Fair Value

$377.21

Current Price

$300.96

$76.25 discount

UndervaluedFair: $377.21Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GD2 strengths · Avg: 8.5/10
Market CapQuality
$96.34B9/10

Large-cap with strong market position

EPS GrowthGrowth
40.0%8/10

Earnings expanding 40.0% YoY

GE5 strengths · Avg: 8.8/10
Market CapQuality
$320.66B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
44.7%10/10

Every $100 of equity generates 45 in profit

Revenue GrowthGrowth
17.6%8/10

17.6% revenue growth

EPS GrowthGrowth
37.4%8/10

Earnings expanding 37.4% YoY

Free Cash FlowQuality
$1.79B8/10

Generating 1.8B in free cash flow

Areas to Watch

GD1 concerns · Avg: 2.0/10
PEG RatioValuation
2.542/10

Expensive relative to growth rate

GE4 concerns · Avg: 3.5/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
16.9x4/10

Trading at 16.9x book value

Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

PEG RatioValuation
5.182/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : GD

The strongest argument for GD centers on Market Cap, EPS Growth.

Bull Case : GE

The strongest argument for GE centers on Market Cap, Return on Equity, Revenue Growth. Profitability is solid with margins at 19.0% and operating margin at 19.6%. Revenue growth of 17.6% demonstrates continued momentum.

Bear Case : GD

The primary concerns for GD are PEG Ratio.

Bear Case : GE

The primary concerns for GE are P/E Ratio, Price/Book, Altman Z-Score.

Key Dynamics to Monitor

GD profiles as a value stock while GE is a growth play — different risk/reward profiles.

GE carries more volatility with a beta of 1.37 — expect wider price swings.

GE is growing revenue faster at 17.6% — sustainability is the question.

GE generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

GE scores higher overall (65/100 vs 54/100), backed by strong 19.0% margins and 17.6% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

General Dynamics Corporation

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Dynamics Corporation (GD) is an American aerospace and defense corporation. It is headquartered in Reston, Fairfax County, Virginia.

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GE Aerospace

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. As of 2018, the company operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing and venture capital and finance.

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