Critical Review: General Dynamics (NYSE:GD) & Bombardier (OTCMKTS:BDRBF)

Bombardier (OTCMKTS:BDRBFGet Free Report) and General Dynamics (NYSE:GDGet Free Report) are both large-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Bombardier and General Dynamics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bombardier 1 5 4 0 2.30
General Dynamics 1 5 12 1 2.68

Bombardier currently has a consensus target price of $263.00, suggesting a potential upside of 18.50%. General Dynamics has a consensus target price of $411.58, suggesting a potential upside of 16.26%. Given Bombardier’s higher possible upside, equities analysts plainly believe Bombardier is more favorable than General Dynamics.

Insider and Institutional Ownership

86.1% of General Dynamics shares are owned by institutional investors. 1.4% of General Dynamics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Bombardier and General Dynamics”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bombardier $9.55 billion 2.30 $928.00 million $9.11 24.36
General Dynamics $52.55 billion 1.82 $4.21 billion $16.39 21.60

General Dynamics has higher revenue and earnings than Bombardier. General Dynamics is trading at a lower price-to-earnings ratio than Bombardier, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bombardier and General Dynamics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bombardier 9.74% -75.69% 7.46%
General Dynamics 8.18% 17.43% 7.67%

Summary

General Dynamics beats Bombardier on 10 of the 14 factors compared between the two stocks.

About Bombardier

(Get Free Report)

Bombardier Inc. engages in the design, manufacture, and sale of business aircraft and aircraft structural components worldwide. It provides new aircraft, specialized aircraft solutions, and pre-owned aircraft. The company also offers aftermarket services, including parts, service centers, smart services, training, and technical publications. It serves multinational corporations, charter and fractional ownership providers, governments, and private individuals. The company was incorporated in 1902 and is based in Dorval, Canada.

About General Dynamics

(Get Free Report)

General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment produces and sells business jets; and offers aircraft maintenance and repair, management, aircraft-on-ground support and completion, charter, staffing, and fixed-base operator services. The Marine Systems segment designs and builds nuclear-powered submarines, surface combatants, and auxiliary ships for the United States Navy and Jones Act ships for commercial customers, as well as builds crude oil and product tankers, and container and cargo ships; provides maintenance, modernization, and lifecycle support services for navy ships; offers and program management, planning, engineering, and design support services for submarine construction programs. The Combat Systems segment manufactures land combat solutions, such as wheeled and tracked combat vehicles, Stryker wheeled combat vehicles, piranha vehicles, weapons systems, munitions, mobile bridge systems with payloads, tactical vehicles, main battle tanks, armored vehicles, and armaments; and offers modernization programs, engineering, support, and sustainment services. The Technologies segment provides information technology solutions and mission support services; mobile communication, computers, and command-and-control mission systems; intelligence, surveillance, and reconnaissance solutions to military, intelligence, and federal civilian customers; cloud computing, artificial intelligence; machine learning; big data analytics; development, security, and operations; and unmanned undersea vehicle manufacturing and assembly services. The company was founded in 1899 and is headquartered in Reston, Virginia.

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