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

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for General Dynamics and XTI Aerospace, as provided by MarketBeat.com.

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

General Dynamics presently has a consensus price target of $358.50, indicating a potential upside of 3.89%. Given General Dynamics’ stronger consensus rating and higher probable upside, equities analysts plainly believe General Dynamics is more favorable than XTI Aerospace.

Profitability

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

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

Institutional and Insider Ownership

86.1% of General Dynamics shares are owned by institutional investors. Comparatively, 11.7% of XTI Aerospace shares are owned by institutional investors. 1.5% of General Dynamics shares are owned by insiders. Comparatively, 7.4% of XTI Aerospace shares are owned by 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.

Volatility and Risk

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

Valuation and Earnings

This table compares General Dynamics and XTI Aerospace”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
General Dynamics	$47.72 billion	1.95	$3.78 billion	$15.43	22.36
XTI Aerospace	$3.20 million	14.45	-$35.60 million	($7.34)	-0.19

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.

Summary

General Dynamics beats XTI Aerospace on 12 of the 15 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 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.