StandardAero (NYSE:SARO – Get Free Report) and General Dynamics (NYSE:GD – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
Analyst Ratings
This is a breakdown of recent recommendations for StandardAero and General Dynamics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| StandardAero | 0 | 6 | 7 | 2 | 2.73 |
| General Dynamics | 1 | 5 | 11 | 0 | 2.59 |
StandardAero currently has a consensus target price of $33.55, indicating a potential upside of 21.51%. General Dynamics has a consensus target price of $408.94, indicating a potential upside of 12.64%. Given StandardAero’s stronger consensus rating and higher probable upside, analysts plainly believe StandardAero is more favorable than General Dynamics.
Insider & Institutional Ownership
86.1% of General Dynamics shares are owned by institutional investors. 2.1% of StandardAero shares are owned by insiders. Comparatively, 1.4% of General Dynamics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares StandardAero and General Dynamics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| StandardAero | $6.06 billion | 1.49 | $277.42 million | $1.05 | 26.29 |
| General Dynamics | $52.55 billion | 1.87 | $4.21 billion | $17.00 | 21.36 |
General Dynamics has higher revenue and earnings than StandardAero. General Dynamics is trading at a lower price-to-earnings ratio than StandardAero, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
StandardAero has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, General Dynamics has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.
Profitability
This table compares StandardAero and General Dynamics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| StandardAero | 5.46% | 16.27% | 6.53% |
| General Dynamics | 8.24% | 17.60% | 7.87% |
Summary
General Dynamics beats StandardAero on 9 of the 15 factors compared between the two stocks.
About StandardAero
StandardAero is a provider of maintenance, repair and overhaul services for the aerospace and aviation industries. Its work includes servicing and repairing aircraft engines, airframes and related components, as well as providing engineering and other technical support. The company serves customers across business and general aviation, commercial aviation, military and helicopter markets. Its services support aircraft operators, airlines, original equipment manufacturers and government organizations, with operations and facilities serving customers in multiple regions worldwide.
About General Dynamics
General Dynamics Corporation is an aerospace and defense company that develops and manufactures products and provides services for commercial, government and military customers. Its businesses span aerospace, marine systems, combat systems and defense technologies. The company makes Gulfstream business jets and provides aircraft services. Its marine systems operations design and build submarines and surface ships, while its combat systems business produces military vehicles, weapons systems and munitions.
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