AOS vs. GE: A Head-to-Head Stock Comparison

Updated on July 7, 2025

Here’s a clear look at AOS and GE, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

GE’s market capitalization of 263.27 billion USD is significantly greater than AOS’s 9.65 billion USD, highlighting its more substantial market valuation.

With betas of 1.21 for AOS and 1.39 for GE, both stocks show similar sensitivity to overall market movements.

Symbol	AOS	GE
Company Name	A. O. Smith Corporation	General Electric Company
Country	US	US
Sector	Industrials	Industrials
Industry	Industrial - Machinery	Aerospace & Defense
CEO	Kevin J. Wheeler	H. Lawrence Culp Jr.
Price	67.92 USD	246.88 USD
Market Cap	9.65 billion USD	263.27 billion USD
Beta	1.21	1.39
Exchange	NYSE	NYSE
IPO Date	September 30, 1983	January 2, 1962
ADR	No	No

Historical Performance

This chart compares the performance of AOS and GE by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AOS vs. GE: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AOS

27.63%

Industrial - Machinery Industry

Max: 36.51%
Q3: 18.65%
Median: 12.08%
Q1: 4.75%
Min: -15.57%

In the upper quartile for the Industrial - Machinery industry, AOS’s Return on Equity of 27.63% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

GE

36.78%

Aerospace & Defense Industry

Max: 42.57%
Q3: 16.67%
Median: 8.39%
Q1: -0.77%
Min: -23.36%

In the upper quartile for the Aerospace & Defense industry, GE’s Return on Equity of 36.78% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AOS vs. GE: A comparison of their ROE against their respective Industrial - Machinery and Aerospace & Defense industry benchmarks.

Return on Invested Capital

AOS

22.35%

Industrial - Machinery Industry

Max: 22.35%
Q3: 12.64%
Median: 9.33%
Q1: 5.32%
Min: -5.42%

In the upper quartile for the Industrial - Machinery industry, AOS’s Return on Invested Capital of 22.35% signifies a highly effective use of its capital to generate profits when compared to its peers.

GE

7.17%

Aerospace & Defense Industry

Max: 23.42%
Q3: 8.86%
Median: 5.47%
Q1: -5.60%
Min: -22.46%

GE’s Return on Invested Capital of 7.17% is in line with the norm for the Aerospace & Defense industry, reflecting a standard level of efficiency in generating profits from its capital base.

AOS vs. GE: A comparison of their ROIC against their respective Industrial - Machinery and Aerospace & Defense industry benchmarks.

Net Profit Margin

AOS

13.74%

Industrial - Machinery Industry

Max: 28.85%
Q3: 15.25%
Median: 10.02%
Q1: 5.33%
Min: -8.75%

AOS’s Net Profit Margin of 13.74% is aligned with the median group of its peers in the Industrial - Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.

GE

17.63%

Aerospace & Defense Industry

Max: 22.67%
Q3: 8.04%
Median: 4.95%
Q1: -5.07%
Min: -16.58%

A Net Profit Margin of 17.63% places GE in the upper quartile for the Aerospace & Defense industry, signifying strong profitability and more effective cost management than most of its peers.

AOS vs. GE: A comparison of their Net Profit Margin against their respective Industrial - Machinery and Aerospace & Defense industry benchmarks.

Operating Profit Margin

AOS

18.57%

Industrial - Machinery Industry

Max: 28.19%
Q3: 19.04%
Median: 14.62%
Q1: 8.13%
Min: -5.76%

AOS’s Operating Profit Margin of 18.57% is around the midpoint for the Industrial - Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.

GE

18.89%

Aerospace & Defense Industry

Max: 22.01%
Q3: 11.49%
Median: 8.96%
Q1: 3.77%
Min: -4.96%

An Operating Profit Margin of 18.89% places GE in the upper quartile for the Aerospace & Defense industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AOS vs. GE: A comparison of their Operating Margin against their respective Industrial - Machinery and Aerospace & Defense industry benchmarks.

Profitability at a Glance

Symbol	AOS	GE
Return on Equity (TTM)	27.63%	36.78%
Return on Assets (TTM)	15.99%	5.64%
Return on Invested Capital (TTM)	22.35%	7.17%
Net Profit Margin (TTM)	13.74%	17.63%
Operating Profit Margin (TTM)	18.57%	18.89%
Gross Profit Margin (TTM)	38.02%	38.11%

Financial Strength

Current Ratio

AOS

1.61

Industrial - Machinery Industry

Max: 4.18
Q3: 2.75
Median: 2.07
Q1: 1.46
Min: 0.46

AOS’s Current Ratio of 1.61 aligns with the median group of the Industrial - Machinery industry, indicating that its short-term liquidity is in line with its sector peers.

GE

1.08

Aerospace & Defense Industry

Max: 5.13
Q3: 3.36
Median: 2.16
Q1: 1.20
Min: 0.41

GE’s Current Ratio of 1.08 falls into the lower quartile for the Aerospace & Defense industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AOS vs. GE: A comparison of their Current Ratio against their respective Industrial - Machinery and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio

AOS

0.16

Industrial - Machinery Industry

Max: 1.46
Q3: 0.73
Median: 0.48
Q1: 0.17
Min: 0.00

Falling into the lower quartile for the Industrial - Machinery industry, AOS’s Debt-to-Equity Ratio of 0.16 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

GE

1.02

Aerospace & Defense Industry

Max: 1.20
Q3: 0.73
Median: 0.51
Q1: 0.09
Min: 0.00

GE’s leverage is in the upper quartile of the Aerospace & Defense industry, with a Debt-to-Equity Ratio of 1.02. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

AOS vs. GE: A comparison of their D/E Ratio against their respective Industrial - Machinery and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio

AOS

82.13

Industrial - Machinery Industry

Max: 28.91
Q3: 14.99
Median: 9.11
Q1: 3.95
Min: -11.30

With an Interest Coverage Ratio of 82.13, AOS demonstrates a superior capacity to service its debt, placing it well above the typical range for the Industrial - Machinery industry. This stems from either robust earnings or a conservative debt load.

GE

8.03

Aerospace & Defense Industry

Max: 12.62
Q3: 7.38
Median: 2.95
Q1: 1.68
Min: -6.68

GE’s Interest Coverage Ratio of 8.03 is in the upper quartile for the Aerospace & Defense industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AOS vs. GE: A comparison of their Interest Coverage against their respective Industrial - Machinery and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

Symbol	AOS	GE
Current Ratio (TTM)	1.61	1.08
Quick Ratio (TTM)	1.01	0.77
Debt-to-Equity Ratio (TTM)	0.16	1.02
Debt-to-Asset Ratio (TTM)	0.09	0.16
Net Debt-to-EBITDA Ratio (TTM)	0.16	0.73
Interest Coverage Ratio (TTM)	82.13	8.03

Growth

The following charts compare key year-over-year (YoY) growth metrics for AOS and GE. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AOS vs. GE: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AOS vs. GE: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AOS vs. GE: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AOS

1.97%

Industrial - Machinery Industry

Max: 4.40%
Q3: 1.47%
Median: 0.74%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 1.97%, AOS offers a more attractive income stream than most of its peers in the Industrial - Machinery industry, signaling a strong commitment to shareholder returns.

GE

0.49%

Aerospace & Defense Industry

Max: 6.00%
Q3: 0.66%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

GE’s Dividend Yield of 0.49% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.

AOS vs. GE: A comparison of their Dividend Yield against their respective Industrial - Machinery and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio

AOS

36.80%

Industrial - Machinery Industry

Max: 78.48%
Q3: 36.22%
Median: 20.24%
Q1: 0.00%
Min: 0.00%

AOS’s Dividend Payout Ratio of 36.80% is in the upper quartile for the Industrial - Machinery industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

GE

17.50%

Aerospace & Defense Industry

Max: 172.02%
Q3: 32.47%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

GE’s Dividend Payout Ratio of 17.50% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AOS vs. GE: A comparison of their Payout Ratio against their respective Industrial - Machinery and Aerospace & Defense industry benchmarks.

Dividend at a Glance

Symbol	AOS	GE
Dividend Yield (TTM)	1.97%	0.49%
Dividend Payout Ratio (TTM)	36.80%	17.50%

Valuation

Price-to-Earnings Ratio

AOS

18.77

Industrial - Machinery Industry

Max: 47.62
Q3: 34.41
Median: 27.36
Q1: 21.62
Min: 10.96

In the lower quartile for the Industrial - Machinery industry, AOS’s P/E Ratio of 18.77 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

GE

37.76

Aerospace & Defense Industry

Max: 75.34
Q3: 54.40
Median: 38.63
Q1: 26.10
Min: 16.44

GE’s P/E Ratio of 37.76 is within the middle range for the Aerospace & Defense industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AOS vs. GE: A comparison of their P/E Ratio against their respective Industrial - Machinery and Aerospace & Defense industry benchmarks.

Forward P/E to Growth Ratio

AOS

2.13

Industrial - Machinery Industry

Max: 6.15
Q3: 3.53
Median: 2.82
Q1: 1.71
Min: 0.09

The Forward PEG Ratio is often not a primary valuation metric in the Industrial - Machinery industry.

GE

2.47

Aerospace & Defense Industry

Max: 10.68
Q3: 5.36
Median: 2.31
Q1: 1.47
Min: 0.01

GE’s Forward PEG Ratio of 2.47 is within the middle range of its peers in the Aerospace & Defense industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

AOS vs. GE: A comparison of their Forward PEG Ratio against their respective Industrial - Machinery and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio

AOS

2.54

Industrial - Machinery Industry

Max: 8.37
Q3: 4.59
Median: 3.34
Q1: 1.83
Min: 0.32

AOS’s P/S Ratio of 2.54 aligns with the market consensus for the Industrial - Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

GE

6.63

Aerospace & Defense Industry

Max: 19.34
Q3: 9.54
Median: 2.71
Q1: 1.59
Min: 0.35

GE’s P/S Ratio of 6.63 aligns with the market consensus for the Aerospace & Defense industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AOS vs. GE: A comparison of their P/S Ratio against their respective Industrial - Machinery and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio

AOS

5.29

Industrial - Machinery Industry

Max: 7.49
Q3: 5.01
Median: 3.41
Q1: 2.45
Min: 0.01

AOS’s P/B Ratio of 5.29 is in the upper tier for the Industrial - Machinery industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

GE

13.72

Aerospace & Defense Industry

Max: 16.08
Q3: 8.12
Median: 4.12
Q1: 2.69
Min: 0.69

GE’s P/B Ratio of 13.72 is in the upper tier for the Aerospace & Defense industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

AOS vs. GE: A comparison of their P/B Ratio against their respective Industrial - Machinery and Aerospace & Defense industry benchmarks.

Valuation at a Glance

Symbol	AOS	GE
Price-to-Earnings Ratio (P/E, TTM)	18.77	37.76
Forward PEG Ratio (TTM)	2.13	2.47
Price-to-Sales Ratio (P/S, TTM)	2.54	6.63
Price-to-Book Ratio (P/B, TTM)	5.29	13.72
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	23.74	59.73
EV-to-EBITDA (TTM)	12.71	27.52
EV-to-Sales (TTM)	2.57	6.82