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

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

Company Profile

SymbolGDTT
Company NameGeneral Dynamics CorporationTrane Technologies plc
CountryUnited StatesIreland
GICS SectorIndustrialsIndustrials
GICS IndustryAerospace & DefenseBuilding Products
Market Capitalization85.40 billion USD94.86 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962March 17, 1980
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of GD and TT 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. TT: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolGDTT
5-Day Price Return0.52%-0.52%
13-Week Price Return12.83%-1.05%
26-Week Price Return28.97%18.00%
52-Week Price Return7.40%22.86%
Month-to-Date Return1.88%-2.69%
Year-to-Date Return20.49%15.42%
10-Day Avg. Volume0.91M0.92M
3-Month Avg. Volume1.21M1.33M
3-Month Volatility17.95%23.98%
Beta0.481.15

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.

TT

37.61%

Building Products Industry

Max
48.58%
Q3
27.65%
Median
16.01%
Q1
8.81%
Min
-6.66%

In the upper quartile for the Building Products industry, TT’s Return on Equity of 37.61% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

GD vs. TT: A comparison of their Return on Equity (TTM) against their respective Aerospace & Defense and Building Products 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.

TT

13.76%

Building Products Industry

Max
26.11%
Q3
15.09%
Median
9.48%
Q1
5.16%
Min
-3.43%

TT’s Net Profit Margin of 13.76% is aligned with the median group of its peers in the Building Products industry. This indicates its ability to convert revenue into profit is typical for the sector.

GD vs. TT: A comparison of their Net Profit Margin (TTM) against their respective Aerospace & Defense and Building Products 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.

TT

18.39%

Building Products Industry

Max
26.67%
Q3
18.75%
Median
14.89%
Q1
8.70%
Min
-1.00%

TT’s Operating Profit Margin of 18.39% is around the midpoint for the Building Products industry, indicating that its efficiency in managing core business operations is typical for the sector.

GD vs. TT: A comparison of their Operating Profit Margin (TTM) against their respective Aerospace & Defense and Building Products industry benchmarks.

Profitability at a Glance

SymbolGDTT
Return on Equity (TTM)17.99%37.61%
Return on Assets (TTM)7.21%13.90%
Net Profit Margin (TTM)8.13%13.76%
Operating Profit Margin (TTM)10.30%18.39%
Gross Profit Margin (TTM)15.40%36.26%

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.

TT

1.10

Building Products Industry

Max
2.87
Q3
2.03
Median
1.60
Q1
1.32
Min
0.88

TT’s Current Ratio of 1.10 falls into the lower quartile for the Building Products industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

GD vs. TT: A comparison of their Current Ratio (MRQ) against their respective Aerospace & Defense and Building Products 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.

TT

0.59

Building Products Industry

Max
1.64
Q3
1.02
Median
0.66
Q1
0.32
Min
0.00

TT’s Debt-to-Equity Ratio of 0.59 is typical for the Building Products industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

GD vs. TT: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Aerospace & Defense and Building Products 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.

TT

15.31

Building Products Industry

Max
72.12
Q3
34.39
Median
15.31
Q1
6.06
Min
0.85

TT’s Interest Coverage Ratio of 15.31 is positioned comfortably within the norm for the Building Products industry, indicating a standard and healthy capacity to cover its interest payments.

GD vs. TT: A comparison of their Interest Coverage Ratio (TTM) against their respective Aerospace & Defense and Building Products industry benchmarks.

Financial Strength at a Glance

SymbolGDTT
Current Ratio (MRQ)1.361.10
Quick Ratio (MRQ)0.830.76
Debt-to-Equity Ratio (MRQ)0.370.59
Interest Coverage Ratio (TTM)15.0115.31

Growth

Revenue Growth

GD vs. TT: 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. TT: 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.

TT

0.84%

Building Products Industry

Max
2.56%
Q3
1.94%
Median
1.04%
Q1
0.66%
Min
0.00%

TT’s Dividend Yield of 0.84% is consistent with its peers in the Building Products industry, providing a dividend return that is standard for its sector.

GD vs. TT: A comparison of their Dividend Yield (TTM) against their respective Aerospace & Defense and Building Products 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.

TT

27.94%

Building Products Industry

Max
157.36%
Q3
77.74%
Median
29.49%
Q1
16.25%
Min
0.00%

TT’s Dividend Payout Ratio of 27.94% is within the typical range for the Building Products industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

GD vs. TT: A comparison of their Dividend Payout Ratio (TTM) against their respective Aerospace & Defense and Building Products industry benchmarks.

Dividend at a Glance

SymbolGDTT
Dividend Yield (TTM)1.83%0.84%
Dividend Payout Ratio (TTM)38.28%27.94%

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.

TT

33.13

Building Products Industry

Max
66.79
Q3
37.37
Median
21.86
Q1
17.57
Min
9.70

TT’s P/E Ratio of 33.13 is within the middle range for the Building Products 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. TT: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Aerospace & Defense and Building Products 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.

TT

4.56

Building Products Industry

Max
6.40
Q3
3.25
Median
1.65
Q1
1.11
Min
0.34

TT’s P/S Ratio of 4.56 is in the upper echelon for the Building Products industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

GD vs. TT: A comparison of their Price-to-Sales Ratio (TTM) against their respective Aerospace & Defense and Building Products 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.

TT

12.45

Building Products Industry

Max
13.31
Q3
6.85
Median
3.20
Q1
1.71
Min
0.73

TT’s P/B Ratio of 12.45 is in the upper tier for the Building Products 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. TT: A comparison of their Price-to-Book Ratio (MRQ) against their respective Aerospace & Defense and Building Products industry benchmarks.

Valuation at a Glance

SymbolGDTT
Price-to-Earnings Ratio (TTM)20.8833.13
Price-to-Sales Ratio (TTM)1.704.56
Price-to-Book Ratio (MRQ)3.3212.45
Price-to-Free Cash Flow Ratio (TTM)19.3433.66