Analyzing General Dynamics (NYSE:GD) & XTI Aerospace (NASDAQ:XTIA)

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

Analyst Ratings

This is a breakdown of current ratings for XTI Aerospace and General Dynamics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XTI Aerospace	1	0	0	1	2.50
General Dynamics	1	11	13	3	2.64

General Dynamics has a consensus price target of $358.50, indicating a potential upside of 3.76%. Given General Dynamics’ stronger consensus rating and higher probable upside, analysts clearly believe General Dynamics is more favorable than XTI Aerospace.

Institutional & Insider Ownership

11.7% of XTI Aerospace shares are owned by institutional investors. Comparatively, 86.1% of General Dynamics shares are owned by institutional investors. 7.4% of XTI Aerospace shares are owned by insiders. Comparatively, 1.5% of General Dynamics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

XTI Aerospace has a beta of 5.2, meaning that its stock price is 420% more volatile than the S&P 500. Comparatively, General Dynamics has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.

Valuation & Earnings

This table compares XTI Aerospace and General Dynamics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XTI Aerospace	$3.20 million	14.35	-$35.60 million	($7.34)	-0.19
General Dynamics	$51.51 billion	1.81	$3.78 billion	$15.43	22.39

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XTI Aerospace	-1,326.49%	-580.83%	-181.11%
General Dynamics	8.18%	18.27%	7.43%

Summary

General Dynamics beats XTI Aerospace on 12 of the 15 factors compared between the two stocks.

About XTI Aerospace

XTI Aerospace, Inc. engages in the provision of aircraft manufacturing. It primarily focuses on the light and mid-size business aircraft market. The company was founded in April 1999 and is headquartered in Englewood, CO.

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.