GD vs. RKLB: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at GD and RKLB, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | GD | RKLB |
|---|---|---|
| Company Name | General Dynamics Corporation | Rocket Lab Corporation |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Aerospace & Defense | Aerospace & Defense |
| Market Capitalization | 85.40 billion USD | 20.61 billion USD |
| Exchange | NYSE | NasdaqCM |
| Listing Date | January 2, 1962 | November 24, 2020 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of GD and RKLB 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.
Historical Performance at a Glance
| Symbol | GD | RKLB |
|---|---|---|
| 5-Day Price Return | 1.52% | -2.74% |
| 13-Week Price Return | 14.93% | 102.26% |
| 26-Week Price Return | 24.25% | 55.35% |
| 52-Week Price Return | 9.03% | 697.77% |
| Month-to-Date Return | 1.89% | -6.36% |
| Year-to-Date Return | 20.49% | 68.83% |
| 10-Day Avg. Volume | 1.03M | 18.12M |
| 3-Month Avg. Volume | 1.31M | 20.90M |
| 3-Month Volatility | 19.10% | 73.29% |
| Beta | 0.48 | 2.19 |
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.
RKLB
-48.92%
Aerospace & Defense Industry
- Max
- 43.89%
- Q3
- 22.42%
- Median
- 12.50%
- Q1
- 5.21%
- Min
- -6.24%
RKLB has a negative Return on Equity of -48.92%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
RKLB
-44.32%
Aerospace & Defense Industry
- Max
- 14.54%
- Q3
- 8.08%
- Median
- 6.17%
- Q1
- 2.49%
- Min
- -1.63%
RKLB has a negative Net Profit Margin of -44.32%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
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.
RKLB
-44.19%
Aerospace & Defense Industry
- Max
- 16.63%
- Q3
- 10.38%
- Median
- 8.29%
- Q1
- 6.21%
- Min
- 0.95%
RKLB has a negative Operating Profit Margin of -44.19%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | GD | RKLB |
|---|---|---|
| Return on Equity (TTM) | 17.99% | -48.92% |
| Return on Assets (TTM) | 7.21% | -17.28% |
| Net Profit Margin (TTM) | 8.13% | -44.32% |
| Operating Profit Margin (TTM) | 10.30% | -44.19% |
| Gross Profit Margin (TTM) | 15.40% | 27.30% |
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.
RKLB
2.08
Aerospace & Defense Industry
- Max
- 3.09
- Q3
- 1.98
- Median
- 1.23
- Q1
- 1.03
- Min
- 0.02
RKLB’s Current Ratio of 2.08 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
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.
RKLB
1.02
Aerospace & Defense Industry
- Max
- 1.70
- Q3
- 1.04
- Median
- 0.68
- Q1
- 0.41
- Min
- 0.00
RKLB’s Debt-to-Equity Ratio of 1.02 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 (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.
RKLB
-45.87
Aerospace & Defense Industry
- Max
- 36.57
- Q3
- 19.90
- Median
- 7.04
- Q1
- 2.40
- Min
- -7.63
RKLB has a negative Interest Coverage Ratio of -45.87. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | GD | RKLB |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 2.08 |
| Quick Ratio (MRQ) | 0.83 | 1.60 |
| Debt-to-Equity Ratio (MRQ) | 0.37 | 1.02 |
| Interest Coverage Ratio (TTM) | 15.01 | -45.87 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
GD
1.84%
Aerospace & Defense Industry
- Max
- 2.03%
- Q3
- 1.22%
- Median
- 0.43%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.84%, GD offers a more attractive income stream than most of its peers in the Aerospace & Defense industry, signaling a strong commitment to shareholder returns.
RKLB
0.00%
Aerospace & Defense Industry
- Max
- 2.03%
- Q3
- 1.22%
- Median
- 0.43%
- Q1
- 0.00%
- Min
- 0.00%
RKLB 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.
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.
RKLB
0.00%
Aerospace & Defense Industry
- Max
- 83.87%
- Q3
- 49.90%
- Median
- 16.48%
- Q1
- 0.00%
- Min
- 0.00%
RKLB has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | GD | RKLB |
|---|---|---|
| Dividend Yield (TTM) | 1.84% | 0.00% |
| Dividend Payout Ratio (TTM) | 38.28% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
GD
20.76
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 20.76 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
RKLB
--
Aerospace & Defense Industry
- Max
- 65.97
- Q3
- 54.11
- Median
- 34.53
- Q1
- 23.66
- Min
- 0.00
P/E Ratio data for RKLB is currently unavailable.
Price-to-Sales Ratio (TTM)
GD
1.69
Aerospace & Defense Industry
- Max
- 8.07
- Q3
- 4.49
- Median
- 2.42
- Q1
- 1.39
- Min
- 0.00
GD’s P/S Ratio of 1.69 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.
RKLB
44.23
Aerospace & Defense Industry
- Max
- 8.07
- Q3
- 4.49
- Median
- 2.42
- Q1
- 1.39
- Min
- 0.00
With a P/S Ratio of 44.23, RKLB trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
RKLB
18.80
Aerospace & Defense Industry
- Max
- 13.67
- Q3
- 7.92
- Median
- 4.65
- Q1
- 2.68
- Min
- 0.82
At 18.80, RKLB’s P/B Ratio is at an extreme premium to the Aerospace & Defense industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | GD | RKLB |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 20.76 | -- |
| Price-to-Sales Ratio (TTM) | 1.69 | 44.23 |
| Price-to-Book Ratio (MRQ) | 3.32 | 18.80 |
| Price-to-Free Cash Flow Ratio (TTM) | 19.22 | -- |