WallStSmart

General Dynamics Corporation (GD)vsMercury Systems Inc (MRCY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

General Dynamics Corporation generates 5477% more annual revenue ($54.86B vs $983.62M). GD leads profitability with a 8.2% profit margin vs -3.0%. GD appears more attractively valued with a PEG of 2.19. GD earns a higher WallStSmart Score of 58/100 (C).

GD

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 6.5Value: 4.0Quality: 7.0
Piotroski: 6/9Altman Z: 2.95

MRCY

Avoid

32

out of 100

Grade: F

Growth: 4.0Profit: 3.0Value: 3.0Quality: 7.0
Piotroski: 4/9Altman Z: 1.97
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GDSignificantly Overvalued (-56.6%)

Margin of Safety

-56.6%

Fair Value

$229.18

Current Price

$355.90

$126.72 premium

UndervaluedFair: $229.18Overvalued
MRCYSignificantly Overvalued (-37.9%)

Margin of Safety

-37.9%

Fair Value

$58.26

Current Price

$80.61

$22.35 premium

UndervaluedFair: $58.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GD2 strengths · Avg: 8.5/10
Market CapQuality
$96.29B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.65B8/10

Generating 1.6B in free cash flow

MRCY0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

GD1 concerns · Avg: 4.0/10
PEG RatioValuation
2.194/10

Expensive relative to growth rate

MRCY4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.974/10

Grey zone — moderate risk

Operating MarginProfitability
1.2%3/10

Operating margin of 1.2%

PEG RatioValuation
2.792/10

Expensive relative to growth rate

Return on EquityProfitability
-1.0%2/10

ROE of -1.0% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : GD

The strongest argument for GD centers on Market Cap, Free Cash Flow.

Bull Case : MRCY

MRCY has a balanced fundamental profile.

Bear Case : GD

The primary concerns for GD are PEG Ratio.

Bear Case : MRCY

The primary concerns for MRCY are Altman Z-Score, Operating Margin, PEG Ratio.

Key Dynamics to Monitor

GD profiles as a value stock while MRCY is a turnaround play — different risk/reward profiles.

MRCY carries more volatility with a beta of 0.98 — expect wider price swings.

GD is growing revenue faster at 8.1% — sustainability is the question.

GD generates stronger free cash flow (1.6B), providing more financial flexibility.

Bottom Line

GD scores higher overall (58/100 vs 32/100). Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

General Dynamics Corporation

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Dynamics Corporation (GD) is an American aerospace and defense corporation. It is headquartered in Reston, Fairfax County, Virginia.

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Mercury Systems Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Mercury Systems, Inc., a technology company, manufactures and sells components, modules, and subsystems in the United States, Europe, and Asia Pacific. The company is headquartered in Andover, Massachusetts.

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