GENERAL DYNAMICS CORP vs NORTHROP GRUMMAN CORP /DE/, two Aerospace & Defense stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
General Dynamics runs two very different shops under one roof: defense hardware and Gulfstream business jets. It earns 16.65% on equity, keeps 8.07 cents per revenue dollar, and stands out on cash, converting at a 6.53% free cash flow yield with light debt at 0.31 debt-to-equity and a $95.0B cap. Northrop Grumman is the purer defense prime, and the numbers run richer: 26.74% return on equity, a 10.8% net margin, priced at 15.67 times earnings and 4.16 times book, $71.2B cap. General Dynamics wins on cash generation; Northrop wins on profitability and pays less per dollar of earnings. Both are the steady kind of government contractor.
Comparison updated 2026-07-11.
| Metric | GD | NOC |
|---|---|---|
| Price | $374.35 | $539.53 |
| Market cap | $102.6B | $76.9B |
| Sector | Aerospace & Defense | Aerospace & Defense |
| Stage | Mature | Mature |
| Implied growth (priced in) | +9.5% | +2.9% |
| P/E | — | 16.9 |
| P/B | 3.93 | 4.49 |
| P/S | 1.91 | 1.81 |
| EV/EBITDA | 16.6 | 14.0 |
| Revenue growth | +9.4% | +4.9% |
| Operating margin | 10.5% | 10.0% |
| Net margin | 8.1% | 10.8% |
| Return on equity | 16.6% | 26.7% |
| Return on assets | 7.3% | 9.2% |
| Return on invested capital | 13.3% | 13.0% |
| FCF yield | 6.0% | 4.3% |
| Dividend yield | — | 1.7% |
| Debt / equity | 0.31 | 0.89 |
| Current ratio | 1.38 | 1.15 |
| Altman Z (solvency) | 8.20 | 2.84 |
| Piotroski F (quality) | 7 / 9 | 4 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.