BA vs. GD: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at BA and GD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
BA’s market capitalization of 151.51 billion USD is substantially larger than GD’s 75.43 billion USD, indicating a significant difference in their market valuations.
BA’s beta of 1.42 points to significantly higher volatility compared to GD (beta: 0.47), suggesting BA has greater potential for both gains and losses relative to market movements.
| Symbol | BA | GD |
|---|---|---|
| Company Name | The Boeing Company | General Dynamics Corporation |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Aerospace & Defense | Aerospace & Defense |
| CEO | Mr. Robert K. Ortberg | Ms. Phebe N. Novakovic |
| Price | 200.94 USD | 281.05 USD |
| Market Cap | 151.51 billion USD | 75.43 billion USD |
| Beta | 1.42 | 0.47 |
| Exchange | NYSE | NYSE |
| IPO Date | January 2, 1962 | January 13, 1978 |
| ADR | No | No |
Historical Performance
This chart compares the performance of BA and GD over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
Profitability
Return on Equity
BA
94.43%
Aerospace & Defense Industry
- Max
- 36.78%
- Q3
- 16.41%
- Median
- 8.87%
- Q1
- 0.61%
- Min
- -5.25%
BA’s Return on Equity of 94.43% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
GD
17.81%
Aerospace & Defense Industry
- Max
- 36.78%
- Q3
- 16.41%
- Median
- 8.87%
- Q1
- 0.61%
- Min
- -5.25%
In the upper quartile for the Aerospace & Defense industry, GD’s Return on Equity of 17.81% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
BA
-16.36%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.84%
- Median
- 5.97%
- Q1
- -2.11%
- Min
- -17.13%
BA has a negative Return on Invested Capital of -16.36%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
GD
10.43%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.84%
- Median
- 5.97%
- Q1
- -2.11%
- Min
- -17.13%
In the upper quartile for the Aerospace & Defense industry, GD’s Return on Invested Capital of 10.43% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
BA
-16.58%
Aerospace & Defense Industry
- Max
- 17.63%
- Q3
- 7.98%
- Median
- 5.29%
- Q1
- -0.45%
- Min
- -7.33%
BA has a negative Net Profit Margin of -16.58%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
GD
8.08%
Aerospace & Defense Industry
- Max
- 17.63%
- Q3
- 7.98%
- Median
- 5.29%
- Q1
- -0.45%
- Min
- -7.33%
A Net Profit Margin of 8.08% places GD in the upper quartile for the Aerospace & Defense industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
BA
-14.63%
Aerospace & Defense Industry
- Max
- 18.89%
- Q3
- 10.92%
- Median
- 7.91%
- Q1
- 3.94%
- Min
- -4.96%
BA has a negative Operating Profit Margin of -14.63%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
GD
10.22%
Aerospace & Defense Industry
- Max
- 18.89%
- Q3
- 10.92%
- Median
- 7.91%
- Q1
- 3.94%
- Min
- -4.96%
GD’s Operating Profit Margin of 10.22% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | BA | GD |
|---|---|---|
| Return on Equity (TTM) | 94.43% | 17.81% |
| Return on Assets (TTM) | -7.36% | 7.03% |
| Return on Invested Capital (TTM) | -16.36% | 10.43% |
| Net Profit Margin (TTM) | -16.58% | 8.08% |
| Operating Profit Margin (TTM) | -14.63% | 10.22% |
| Gross Profit Margin (TTM) | -2.09% | 15.43% |
Financial Strength
Current Ratio
BA
1.23
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.34
- Median
- 2.08
- Q1
- 1.23
- Min
- 0.08
BA’s Current Ratio of 1.23 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.
GD
1.34
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.34
- Median
- 2.08
- Q1
- 1.23
- Min
- 0.08
GD’s Current Ratio of 1.34 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
BA
-16.13
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.77
- Median
- 0.52
- Q1
- 0.18
- Min
- 0.00
BA has a Debt-to-Equity Ratio of -16.13, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
GD
0.52
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.77
- Median
- 0.52
- Q1
- 0.18
- Min
- 0.00
GD’s Debt-to-Equity Ratio of 0.52 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
BA
-3.55
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.65
- Median
- 2.95
- Q1
- 1.56
- Min
- -6.68
BA has a negative Interest Coverage Ratio of -3.55. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
GD
--
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.65
- Median
- 2.95
- Q1
- 1.56
- Min
- -6.68
Interest Coverage Ratio data for GD is currently unavailable.
Financial Strength at a Glance
| Symbol | BA | GD |
|---|---|---|
| Current Ratio (TTM) | 1.23 | 1.34 |
| Quick Ratio (TTM) | 0.37 | 0.82 |
| Debt-to-Equity Ratio (TTM) | -16.13 | 0.52 |
| Debt-to-Asset Ratio (TTM) | 0.34 | 0.20 |
| Net Debt-to-EBITDA Ratio (TTM) | -6.18 | 1.75 |
| Interest Coverage Ratio (TTM) | -3.55 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for BA and GD. These metrics are based on the companies’ annual financial reports.
Revenue Growth (YoY)
EPS Growth (YoY)
Free Cash Flow Growth (YoY)
Dividend
Dividend Yield
BA
0.00%
Aerospace & Defense Industry
- Max
- 5.96%
- Q3
- 0.78%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
BA currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
GD
2.05%
Aerospace & Defense Industry
- Max
- 5.96%
- Q3
- 0.78%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.05%, GD offers a more attractive income stream than most of its peers in the Aerospace & Defense industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
BA
-0.63%
Aerospace & Defense Industry
- Max
- 76.64%
- Q3
- 36.30%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
BA has a negative Dividend Payout Ratio of -0.63%. This typically means the company paid a dividend despite reporting a net loss, a situation that may signal financial instability.
GD
39.00%
Aerospace & Defense Industry
- Max
- 76.64%
- Q3
- 36.30%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
GD’s Dividend Payout Ratio of 39.00% is in the upper quartile for the Aerospace & Defense 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.
Dividend at a Glance
| Symbol | BA | GD |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.05% |
| Dividend Payout Ratio (TTM) | -0.63% | 39.00% |
Valuation
Price-to-Earnings Ratio
BA
-13.15
Aerospace & Defense Industry
- Max
- 72.97
- Q3
- 65.44
- Median
- 36.84
- Q1
- 23.26
- Min
- 3.57
BA has a negative P/E Ratio of -13.15. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
GD
19.01
Aerospace & Defense Industry
- Max
- 72.97
- Q3
- 65.44
- Median
- 36.84
- Q1
- 23.26
- Min
- 3.57
In the lower quartile for the Aerospace & Defense industry, GD’s P/E Ratio of 19.01 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Forward P/E to Growth Ratio
BA
-6.02
Aerospace & Defense Industry
- Max
- 11.19
- Q3
- 5.68
- Median
- 2.15
- Q1
- 1.18
- Min
- 0.01
BA has a negative Forward PEG Ratio of -6.02. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
GD
2.13
Aerospace & Defense Industry
- Max
- 11.19
- Q3
- 5.68
- Median
- 2.15
- Q1
- 1.18
- Min
- 0.01
GD’s Forward PEG Ratio of 2.13 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.
Price-to-Sales Ratio
BA
2.18
Aerospace & Defense Industry
- Max
- 11.66
- Q3
- 7.02
- Median
- 2.46
- Q1
- 1.56
- Min
- 0.33
BA’s P/S Ratio of 2.18 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.
GD
1.53
Aerospace & Defense Industry
- Max
- 11.66
- Q3
- 7.02
- Median
- 2.46
- Q1
- 1.56
- Min
- 0.33
In the lower quartile for the Aerospace & Defense industry, GD’s P/S Ratio of 1.53 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio
BA
-45.53
Aerospace & Defense Industry
- Max
- 13.30
- Q3
- 7.31
- Median
- 4.08
- Q1
- 2.49
- Min
- 1.06
BA has a negative P/B Ratio of -45.53, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.
GD
3.40
Aerospace & Defense Industry
- Max
- 13.30
- Q3
- 7.31
- Median
- 4.08
- Q1
- 2.49
- Min
- 1.06
GD’s P/B Ratio of 3.40 is within the conventional range for the Aerospace & Defense industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | BA | GD |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -13.15 | 19.01 |
| Forward PEG Ratio (TTM) | -6.02 | 2.13 |
| Price-to-Sales Ratio (P/S, TTM) | 2.18 | 1.53 |
| Price-to-Book Ratio (P/B, TTM) | -45.53 | 3.40 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -11.87 | 22.56 |
| EV-to-EBITDA (TTM) | -27.73 | 14.57 |
| EV-to-Sales (TTM) | 2.81 | 1.74 |