WallStSmart

General Dynamics Corporation (GD)vsTransdigm Group Incorporated (TDG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

General Dynamics Corporation generates 491% more annual revenue ($53.81B vs $9.11B). TDG leads profitability with a 22.2% profit margin vs 8.1%. GD appears more attractively valued with a PEG of 2.58. GD earns a higher WallStSmart Score of 60/100 (C+).

GD

Buy

60

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 3.3Quality: 7.0
Piotroski: 6/9Altman Z: 2.95

TDG

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 7.5Value: 2.7Quality: 6.5
Piotroski: 5/9Altman Z: 0.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GDSignificantly Overvalued (-22.2%)

Margin of Safety

-22.2%

Fair Value

$293.63

Current Price

$347.27

$53.64 premium

UndervaluedFair: $293.63Overvalued
TDGSignificantly Overvalued (-60.2%)

Margin of Safety

-60.2%

Fair Value

$827.74

Current Price

$1233.37

$405.63 premium

UndervaluedFair: $827.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GD2 strengths · Avg: 8.5/10
Market CapQuality
$94.40B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.95B8/10

Generating 2.0B in free cash flow

TDG4 strengths · Avg: 9.5/10
Operating MarginProfitability
45.6%10/10

Strong operational efficiency at 45.6%

Debt/EquityHealth
-3.2310/10

Conservative balance sheet, low leverage

Market CapQuality
$65.20B9/10

Large-cap with strong market position

Profit MarginProfitability
22.2%9/10

Keeps 22 of every $100 in revenue as profit

Areas to Watch

GD1 concerns · Avg: 2.0/10
PEG RatioValuation
2.582/10

Expensive relative to growth rate

TDG4 concerns · Avg: 2.8/10
P/E RatioValuation
37.2x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
2.852/10

Expensive relative to growth rate

EPS GrowthGrowth
-12.9%2/10

Earnings declined 12.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : GD

The strongest argument for GD centers on Market Cap, Free Cash Flow. Revenue growth of 10.3% demonstrates continued momentum.

Bull Case : TDG

The strongest argument for TDG centers on Operating Margin, Debt/Equity, Market Cap. Profitability is solid with margins at 22.2% and operating margin at 45.6%. Revenue growth of 13.9% demonstrates continued momentum.

Bear Case : GD

The primary concerns for GD are PEG Ratio.

Bear Case : TDG

The primary concerns for TDG are P/E Ratio, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

GD profiles as a value stock while TDG is a mature play — different risk/reward profiles.

TDG carries more volatility with a beta of 0.95 — expect wider price swings.

TDG is growing revenue faster at 13.9% — sustainability is the question.

GD generates stronger free cash flow (2.0B), providing more financial flexibility.

Bottom Line

GD scores higher overall (60/100 vs 53/100) and 10.3% revenue growth. Both earn "Buy" and "Buy" 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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Transdigm Group Incorporated

INDUSTRIALS · AEROSPACE & DEFENSE · USA

TransDigm Group is a publicly traded aerospace manufacturing company headquartered in Cleveland, Ohio. TransDigm develops and manufactures engineered aerospace components.

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