GENERAL DYNAMICS CORP vs TransDigm Group Incorporated, two Aerospace & Defense stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
TransDigm keeps 21.91 cents of profit per revenue dollar by owning aerospace parts no one else can supply, and the market pays 41.34 times earnings for that grip, a $77.1B cap. Its cash conversion, at 2.4%, is thinner than the margin suggests, because so much goes to servicing debt. General Dynamics runs a broader shop of defense gear and Gulfstream jets at a plainer 8.07% margin, but converts cash at 6.53%, near the top of the sector, on light borrowing of 0.31 and a $95.0B cap. TransDigm is the higher-margin, higher-multiple compounder. General Dynamics is the cash machine that does not need much leverage to run.
Comparison updated 2026-07-11.
| Metric | GD | TDG |
|---|---|---|
| Price | $374.35 | $1291.90 |
| Market cap | $102.6B | $75.2B |
| Sector | Aerospace & Defense | Aerospace & Defense |
| Stage | Mature | Growth |
| Implied growth (priced in) | +9.5% | +13.1% |
| P/E | — | 40.3 |
| P/B | 3.93 | — |
| P/S | 1.91 | 7.91 |
| EV/EBITDA | 16.6 | 22.2 |
| Revenue growth | +9.4% | +13.3% |
| Gross margin | — | 59.4% |
| Operating margin | 10.5% | 46.3% |
| Net margin | 8.1% | 21.9% |
| Return on equity | 16.6% | — |
| Return on assets | 7.3% | 8.2% |
| Return on invested capital | 13.3% | 15.4% |
| FCF yield | 6.0% | 2.5% |
| Debt / equity | 0.31 | — |
| Current ratio | 1.38 | 3.52 |
| Altman Z (solvency) | 8.20 | 1.58 |
| Piotroski F (quality) | 7 / 9 | 7 / 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.