General Dynamics (NYSE:GD) & Redwire (NYSE:RDW) Financial Survey

General Dynamics (NYSE:GD) and Redwire (NYSE:RDW) are both aerospace companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Risk & Volatility

General Dynamics has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Redwire has a beta of 2.52, meaning that its stock price is 152% more volatile than the S&P 500.

Institutional and Insider Ownership

86.1% of General Dynamics shares are owned by institutional investors. Comparatively, 8.1% of Redwire shares are owned by institutional investors. 1.5% of General Dynamics shares are owned by company insiders. Comparatively, 2.6% of Redwire shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
General Dynamics	$47.72 billion	1.77	$3.78 billion	$14.90	21.07
Redwire	$261.35 million	4.90	-$114.32 million	($3.25)	-2.76

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

Analyst Ratings

This is a summary of current ratings for General Dynamics and Redwire, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
General Dynamics	1	12	9	0	2.36
Redwire	0	1	7	0	2.88

General Dynamics presently has a consensus target price of $315.7778, suggesting a potential upside of 0.57%. Redwire has a consensus target price of $20.00, suggesting a potential upside of 122.72%. Given Redwire’s stronger consensus rating and higher possible upside, analysts plainly believe Redwire is more favorable than General Dynamics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
General Dynamics	8.13%	17.99%	7.21%
Redwire	-71.95%	N/A	-15.15%

Summary

General Dynamics beats Redwire on 9 of the 14 factors compared between the two stocks.

About General Dynamics

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.

About Redwire

Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally. The company provides avionics and sensors including star trackers, sun sensors, critical for navigation, and control of spacecraft; camera systems; solar array solutions for spacecraft spanning the spectrum of size, power needs, and orbital location; and strain composite booms, coilable booms, truss structures, telescope baffles, and deployable booms to position sensors or solar arrays away from the spacecraft. It offers software suite that enables digital engineering and generation of high-fidelity, interactive modeling and simulations of individual components, entire spacecraft, and full constellations in a cloud-based environment. In addition, the company microgravity payloads, radio frequency systems, antennas, star trackers, platforms, and in-space manufacturing and biotech facilities. Redwire Corporation is headquartered in Jacksonville, Florida.