General Dynamics vs Raytheon Technologies Which Is a Better Investment?

General Dynamics and Raytheon Technologies are two prominent companies in the defense industry, both offering a range of products and services to government and commercial customers. General Dynamics specializes in aerospace and defense technologies, while Raytheon Technologies focuses on advanced technology solutions for aerospace and defense. Investors looking to capitalize on the booming defense sector may consider investing in these stocks. However, it is important to thoroughly research both companies' financial performance, market positioning and growth potential before making any investment decisions.

General Dynamics or Raytheon Technologies?

When comparing General Dynamics and Raytheon Technologies, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between General Dynamics and Raytheon Technologies.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. General Dynamics has a dividend yield of 2.12%, while Raytheon Technologies has a dividend yield of 2.11%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. General Dynamics reports a 5-year dividend growth of 7.54% year and a payout ratio of 41.22%. On the other hand, Raytheon Technologies reports a 5-year dividend growth of -3.93% year and a payout ratio of 67.44%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with General Dynamics P/E ratio at 19.84 and Raytheon Technologies's P/E ratio at 33.27. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. General Dynamics P/B ratio is 3.14 while Raytheon Technologies's P/B ratio is 2.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, General Dynamics has seen a 5-year revenue growth of 0.26%, while Raytheon Technologies's is -0.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with General Dynamics's ROE at 16.59% and Raytheon Technologies's ROE at 7.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $261.93 for General Dynamics and $115.97 for Raytheon Technologies. Over the past year, General Dynamics's prices ranged from $247.36 to $316.90, with a yearly change of 28.11%. Raytheon Technologies's prices fluctuated between $79.67 and $128.70, with a yearly change of 61.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.