Aerospace & Defense
Compare Stocks
2 / 10Stock Comparison
GD vs RTX
Revenue, margins, valuation, and 5-year total return — side by side.
Aerospace & Defense
GD vs RTX — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Aerospace & Defense | Aerospace & Defense |
| Market Cap | $93.91B | $238.01B |
| Revenue (TTM) | $53.81B | $90.37B |
| Net Income (TTM) | $4.34B | $7.26B |
| Gross Margin | 15.2% | 20.2% |
| Operating Margin | 10.2% | 10.4% |
| Forward P/E | 21.1x | 25.5x |
| Total Debt | $9.79B | $39.51B |
| Cash & Equiv. | $2.33B | $7.43B |
GD vs RTX — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| General Dynamics Co… (GD) | 100 | 236.5 | +136.5% |
| RTX Corporation (RTX) | 100 | 273.9 | +173.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: GD vs RTX
Each card shows where this stock fits in a portfolio — not just who wins on paper.
GD carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 12 yrs, beta 0.56, yield 1.7%
- Rev growth 10.1%, EPS growth 13.4%, 3Y rev CAGR 10.1%
- Lower volatility, beta 0.56, Low D/E 38.2%, current ratio 1.44x
RTX is the clearest fit if your priority is long-term compounding.
- 231.2% 10Y total return vs GD's 174.3%
- Beta 0.51 vs GD's 0.56
- +40.0% vs GD's +30.6%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 10.1% revenue growth vs RTX's 9.7% | |
| Value | Lower P/E (21.1x vs 25.5x) | |
| Quality / Margins | 8.1% margin vs RTX's 8.0% | |
| Stability / Safety | Beta 0.51 vs GD's 0.56 | |
| Dividends | 1.7% yield, 12-year raise streak, vs RTX's 1.5% | |
| Momentum (1Y) | +40.0% vs GD's +30.6% | |
| Efficiency (ROA) | 7.5% ROA vs RTX's 4.3%, ROIC 12.5% vs 6.7% |
GD vs RTX — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
GD vs RTX — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
Evenly matched — GD and RTX each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
RTX is the larger business by revenue, generating $90.4B annually — 1.7x GD's $53.8B. Profitability is closely matched — net margins range from 8.1% (GD) to 8.0% (RTX).
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $53.8B | $90.4B |
| EBITDAEarnings before interest/tax | $6.2B | $13.8B |
| Net IncomeAfter-tax profit | $4.3B | $7.3B |
| Free Cash FlowCash after capex | $6.2B | $8.4B |
| Gross MarginGross profit ÷ Revenue | +15.2% | +20.2% |
| Operating MarginEBIT ÷ Revenue | +10.2% | +10.4% |
| Net MarginNet income ÷ Revenue | +8.1% | +8.0% |
| FCF MarginFCF ÷ Revenue | +11.5% | +9.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.3% | +8.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +12.0% | +32.5% |
Valuation Metrics
GD leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 22.5x trailing earnings, GD trades at a 37% valuation discount to RTX's 35.6x P/E. On an enterprise value basis, GD's 16.8x EV/EBITDA is more attractive than RTX's 21.0x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $93.9B | $238.0B |
| Enterprise ValueMkt cap + debt − cash | $101.4B | $270.1B |
| Trailing P/EPrice ÷ TTM EPS | 22.46x | 35.63x |
| Forward P/EPrice ÷ next-FY EPS est. | 21.06x | 25.54x |
| PEG RatioP/E ÷ EPS growth rate | 3.19x | — |
| EV / EBITDAEnterprise value multiple | 16.79x | 20.96x |
| Price / SalesMarket cap ÷ Revenue | 1.79x | 2.69x |
| Price / BookPrice ÷ Book value/share | 3.71x | 3.57x |
| Price / FCFMarket cap ÷ FCF | 23.72x | 29.98x |
Profitability & Efficiency
GD leads this category, winning 8 of 8 comparable metrics.
Profitability & Efficiency
GD delivers a 17.4% return on equity — every $100 of shareholder capital generates $17 in annual profit, vs $11 for RTX. GD carries lower financial leverage with a 0.38x debt-to-equity ratio, signaling a more conservative balance sheet compared to RTX's 0.59x.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +17.4% | +10.9% |
| ROA (TTM)Return on assets | +7.5% | +4.3% |
| ROICReturn on invested capital | +12.5% | +6.7% |
| ROCEReturn on capital employed | +13.6% | +7.9% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 8 |
| Debt / EquityFinancial leverage | 0.38x | 0.59x |
| Net DebtTotal debt minus cash | $7.5B | $32.1B |
| Cash & Equiv.Liquid assets | $2.3B | $7.4B |
| Total DebtShort + long-term debt | $9.8B | $39.5B |
| Interest CoverageEBIT ÷ Interest expense | 18.94x | 5.58x |
Total Returns (Dividends Reinvested)
RTX leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in RTX five years ago would be worth $22,270 today (with dividends reinvested), compared to $19,433 for GD. Over the past 12 months, RTX leads with a +40.0% total return vs GD's +30.6%. The 3-year compound annual growth rate (CAGR) favors RTX at 24.5% vs GD's 20.0% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +2.0% | -5.2% |
| 1-Year ReturnPast 12 months | +30.6% | +40.0% |
| 3-Year ReturnCumulative with dividends | +73.0% | +92.9% |
| 5-Year ReturnCumulative with dividends | +94.3% | +122.7% |
| 10-Year ReturnCumulative with dividends | +174.3% | +231.2% |
| CAGR (3Y)Annualised 3-year return | +20.0% | +24.5% |
Risk & Volatility
Evenly matched — GD and RTX each lead in 1 of 2 comparable metrics.
Risk & Volatility
RTX is the less volatile stock with a 0.51 beta — it tends to amplify market swings less than GD's 0.56 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. GD currently trades 93.9% from its 52-week high vs RTX's 82.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.56x | 0.51x |
| 52-Week HighHighest price in past year | $369.70 | $214.50 |
| 52-Week LowLowest price in past year | $267.39 | $126.03 |
| % of 52W HighCurrent price vs 52-week peak | +93.9% | +82.4% |
| RSI (14)Momentum oscillator 0–100 | 59.6 | 29.7 |
| Avg Volume (50D)Average daily shares traded | 1.3M | 5.3M |
Analyst Outlook
GD leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates GD as "Buy" and RTX as "Buy". Consensus price targets imply 27.2% upside for RTX (target: $225) vs 17.7% for GD (target: $409). For income investors, GD offers the higher dividend yield at 1.67% vs RTX's 1.49%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $408.83 | $224.89 |
| # AnalystsCovering analysts | 34 | 26 |
| Dividend YieldAnnual dividend ÷ price | +1.7% | +1.5% |
| Dividend StreakConsecutive years of raises | 12 | 4 |
| Dividend / ShareAnnual DPS | $5.82 | $2.63 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.7% | +0.0% |
GD leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). RTX leads in 1 (Total Returns). 2 tied.
GD vs RTX: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is GD or RTX a better buy right now?
For growth investors, General Dynamics Corporation (GD) is the stronger pick with 10.
1% revenue growth year-over-year, versus 9. 7% for RTX Corporation (RTX). General Dynamics Corporation (GD) offers the better valuation at 22. 5x trailing P/E (21. 1x forward), making it the more compelling value choice. Analysts rate General Dynamics Corporation (GD) a "Buy" — based on 34 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — GD or RTX?
On trailing P/E, General Dynamics Corporation (GD) is the cheapest at 22.
5x versus RTX Corporation at 35. 6x. On forward P/E, General Dynamics Corporation is actually cheaper at 21. 1x.
03Which is the better long-term investment — GD or RTX?
Over the past 5 years, RTX Corporation (RTX) delivered a total return of +122.
7%, compared to +94. 3% for General Dynamics Corporation (GD). Over 10 years, the gap is even starker: RTX returned +231. 2% versus GD's +174. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — GD or RTX?
By beta (market sensitivity over 5 years), RTX Corporation (RTX) is the lower-risk stock at 0.
51β versus General Dynamics Corporation's 0. 56β — meaning GD is approximately 10% more volatile than RTX relative to the S&P 500. On balance sheet safety, General Dynamics Corporation (GD) carries a lower debt/equity ratio of 38% versus 59% for RTX Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — GD or RTX?
By revenue growth (latest reported year), General Dynamics Corporation (GD) is pulling ahead at 10.
1% versus 9. 7% for RTX Corporation (RTX). On earnings-per-share growth, the picture is similar: RTX Corporation grew EPS 39. 7% year-over-year, compared to 13. 4% for General Dynamics Corporation. Over a 3-year CAGR, GD leads at 10. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — GD or RTX?
General Dynamics Corporation (GD) is the more profitable company, earning 8.
0% net margin versus 7. 6% for RTX Corporation — meaning it keeps 8. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GD leads at 10. 2% versus 10. 0% for RTX. At the gross margin level — before operating expenses — RTX leads at 20. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is GD or RTX more undervalued right now?
On forward earnings alone, General Dynamics Corporation (GD) trades at 21.
1x forward P/E versus 25. 5x for RTX Corporation — 4. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RTX: 27. 2% to $224. 89.
08Which pays a better dividend — GD or RTX?
All stocks in this comparison pay dividends.
General Dynamics Corporation (GD) offers the highest yield at 1. 7%, versus 1. 5% for RTX Corporation (RTX).
09Is GD or RTX better for a retirement portfolio?
For long-horizon retirement investors, RTX Corporation (RTX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
51), 1. 5% yield, +231. 2% 10Y return). Both have compounded well over 10 years (RTX: +231. 2%, GD: +174. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between GD and RTX?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that outperform both.
You Might Also Compare
Based on how these companies actually compete and overlap — not just which sector they're filed under.