Seek Returns logo

GD vs. NSC: A Head-to-Head Stock Comparison

Updated on

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

Company Profile

SymbolGDNSC
Company NameGeneral Dynamics CorporationNorfolk Southern Corporation
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryAerospace & DefenseGround Transportation
Market Capitalization86.05 billion USD62.23 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962June 2, 1982
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of GD and NSC 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.

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

Historical Performance at a Glance

SymbolGDNSC
5-Day Price Return1.10%-2.85%
13-Week Price Return15.47%15.75%
26-Week Price Return31.01%11.38%
52-Week Price Return9.01%16.99%
Month-to-Date Return2.66%-0.22%
Year-to-Date Return21.41%18.19%
10-Day Avg. Volume0.84M2.13M
3-Month Avg. Volume1.19M1.82M
3-Month Volatility17.76%18.35%
Beta0.491.33

Profitability

Return on Equity (TTM)

GD

17.99%

Aerospace & Defense Industry

Max
43.89%
Q3
22.42%
Median
12.50%
Q1
5.21%
Min
-6.24%

GD’s Return on Equity of 17.99% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

NSC

23.35%

Ground Transportation Industry

Max
22.11%
Q3
13.84%
Median
9.66%
Q1
7.55%
Min
0.36%

NSC’s Return on Equity of 23.35% is exceptionally high, placing it well beyond the typical range for the Ground Transportation industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

GD vs. NSC: A comparison of their Return on Equity (TTM) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Net Profit Margin (TTM)

GD

8.13%

Aerospace & Defense Industry

Max
14.54%
Q3
8.08%
Median
6.17%
Q1
2.49%
Min
-1.63%

A Net Profit Margin of 8.13% places GD in the upper quartile for the Aerospace & Defense industry, signifying strong profitability and more effective cost management than most of its peers.

NSC

27.51%

Ground Transportation Industry

Max
32.20%
Q3
18.59%
Median
7.11%
Q1
4.13%
Min
-10.38%

A Net Profit Margin of 27.51% places NSC in the upper quartile for the Ground Transportation industry, signifying strong profitability and more effective cost management than most of its peers.

GD vs. NSC: A comparison of their Net Profit Margin (TTM) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Operating Profit Margin (TTM)

GD

10.30%

Aerospace & Defense Industry

Max
16.63%
Q3
10.38%
Median
8.29%
Q1
6.21%
Min
0.95%

GD’s Operating Profit Margin of 10.30% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.

NSC

41.45%

Ground Transportation Industry

Max
41.31%
Q3
23.16%
Median
11.33%
Q1
6.82%
Min
-12.08%

NSC’s Operating Profit Margin of 41.45% is exceptionally high, placing it well above the typical range for the Ground Transportation industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

GD vs. NSC: A comparison of their Operating Profit Margin (TTM) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Profitability at a Glance

SymbolGDNSC
Return on Equity (TTM)17.99%23.35%
Return on Assets (TTM)7.21%7.66%
Net Profit Margin (TTM)8.13%27.51%
Operating Profit Margin (TTM)10.30%41.45%
Gross Profit Margin (TTM)15.40%51.67%

Financial Strength

Current Ratio (MRQ)

GD

1.36

Aerospace & Defense Industry

Max
3.09
Q3
1.98
Median
1.23
Q1
1.03
Min
0.02

GD’s Current Ratio of 1.36 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

NSC

0.79

Ground Transportation Industry

Max
2.03
Q3
1.26
Median
0.89
Q1
0.73
Min
0.38

NSC’s Current Ratio of 0.79 aligns with the median group of the Ground Transportation industry, indicating that its short-term liquidity is in line with its sector peers.

GD vs. NSC: A comparison of their Current Ratio (MRQ) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Debt-to-Equity Ratio (MRQ)

GD

0.37

Aerospace & Defense Industry

Max
1.70
Q3
1.04
Median
0.68
Q1
0.41
Min
0.00

Falling into the lower quartile for the Aerospace & Defense industry, GD’s Debt-to-Equity Ratio of 0.37 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

NSC

1.17

Ground Transportation Industry

Max
2.51
Q3
1.51
Median
1.06
Q1
0.47
Min
0.00

NSC’s Debt-to-Equity Ratio of 1.17 is typical for the Ground Transportation industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

GD vs. NSC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Interest Coverage Ratio (TTM)

GD

15.01

Aerospace & Defense Industry

Max
36.57
Q3
19.90
Median
7.04
Q1
2.40
Min
-7.63

GD’s Interest Coverage Ratio of 15.01 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

NSC

5.21

Ground Transportation Industry

Max
51.07
Q3
22.54
Median
7.94
Q1
2.72
Min
-24.57

NSC’s Interest Coverage Ratio of 5.21 is positioned comfortably within the norm for the Ground Transportation industry, indicating a standard and healthy capacity to cover its interest payments.

GD vs. NSC: A comparison of their Interest Coverage Ratio (TTM) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Financial Strength at a Glance

SymbolGDNSC
Current Ratio (MRQ)1.360.79
Quick Ratio (MRQ)0.830.71
Debt-to-Equity Ratio (MRQ)0.371.17
Interest Coverage Ratio (TTM)15.015.21

Growth

Revenue Growth

GD vs. NSC: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

GD vs. NSC: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

GD

1.83%

Aerospace & Defense Industry

Max
2.03%
Q3
1.22%
Median
0.43%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.83%, GD offers a more attractive income stream than most of its peers in the Aerospace & Defense industry, signaling a strong commitment to shareholder returns.

NSC

1.90%

Ground Transportation Industry

Max
5.44%
Q3
2.49%
Median
1.53%
Q1
0.39%
Min
0.00%

NSC’s Dividend Yield of 1.90% is consistent with its peers in the Ground Transportation industry, providing a dividend return that is standard for its sector.

GD vs. NSC: A comparison of their Dividend Yield (TTM) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Dividend Payout Ratio (TTM)

GD

38.28%

Aerospace & Defense Industry

Max
83.87%
Q3
49.90%
Median
16.48%
Q1
0.00%
Min
0.00%

GD’s Dividend Payout Ratio of 38.28% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

NSC

36.42%

Ground Transportation Industry

Max
137.07%
Q3
74.71%
Median
41.16%
Q1
15.12%
Min
0.00%

NSC’s Dividend Payout Ratio of 36.42% is within the typical range for the Ground Transportation industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

GD vs. NSC: A comparison of their Dividend Payout Ratio (TTM) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Dividend at a Glance

SymbolGDNSC
Dividend Yield (TTM)1.83%1.90%
Dividend Payout Ratio (TTM)38.28%36.42%

Valuation

Price-to-Earnings Ratio (TTM)

GD

20.88

Aerospace & Defense Industry

Max
65.97
Q3
54.11
Median
34.53
Q1
23.66
Min
0.00

In the lower quartile for the Aerospace & Defense industry, GD’s P/E Ratio of 20.88 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

NSC

19.18

Ground Transportation Industry

Max
42.59
Q3
24.86
Median
16.38
Q1
12.79
Min
4.37

NSC’s P/E Ratio of 19.18 is within the middle range for the Ground Transportation industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

GD vs. NSC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Price-to-Sales Ratio (TTM)

GD

1.70

Aerospace & Defense Industry

Max
8.07
Q3
4.49
Median
2.42
Q1
1.39
Min
0.00

GD’s P/S Ratio of 1.70 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.

NSC

5.28

Ground Transportation Industry

Max
4.02
Q3
2.20
Median
1.23
Q1
0.87
Min
0.22

With a P/S Ratio of 5.28, NSC trades at a valuation that eclipses even the highest in the Ground Transportation industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

GD vs. NSC: A comparison of their Price-to-Sales Ratio (TTM) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Price-to-Book Ratio (MRQ)

GD

3.32

Aerospace & Defense Industry

Max
13.67
Q3
7.92
Median
4.65
Q1
2.68
Min
0.82

GD’s P/B Ratio of 3.32 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.

NSC

3.90

Ground Transportation Industry

Max
4.95
Q3
2.78
Median
1.38
Q1
1.17
Min
0.64

NSC’s P/B Ratio of 3.90 is in the upper tier for the Ground Transportation 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.

GD vs. NSC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Aerospace & Defense and Ground Transportation industry benchmarks.

Valuation at a Glance

SymbolGDNSC
Price-to-Earnings Ratio (TTM)20.8819.18
Price-to-Sales Ratio (TTM)1.705.28
Price-to-Book Ratio (MRQ)3.323.90
Price-to-Free Cash Flow Ratio (TTM)19.3431.74