EVE (NYSE:EVEX) versus General Dynamics (NYSE:GD) Financial Analysis

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

Institutional & Insider Ownership

1.3% of EVE shares are held by institutional investors. Comparatively, 86.1% of General Dynamics shares are held by institutional investors. 0.2% of EVE shares are held by company insiders. Comparatively, 1.5% of General Dynamics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EVE	N/A	-202.62%	-65.15%
General Dynamics	8.13%	17.99%	7.21%

Analyst Recommendations

This is a breakdown of current ratings and price targets for EVE and General Dynamics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EVE	0	2	3	0	2.60
General Dynamics	1	12	9	0	2.36

EVE currently has a consensus price target of $6.6667, suggesting a potential upside of 56.31%. General Dynamics has a consensus price target of $315.7778, suggesting a potential downside of 0.18%. Given EVE’s stronger consensus rating and higher probable upside, research analysts clearly believe EVE is more favorable than General Dynamics.

Volatility & Risk

EVE has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, General Dynamics has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Valuation and Earnings

This table compares EVE 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
EVE	N/A	N/A	-$138.17 million	($0.63)	-6.77
General Dynamics	$47.72 billion	1.78	$3.78 billion	$14.90	21.23

General Dynamics has higher revenue and earnings than EVE. EVE 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 EVE on 10 of the 13 factors compared between the two stocks.

About EVE

Eve Holding, Inc. is a special purpose acquisition company focused on the aviation sector. The company was founded on 7th August, 2020 and is headquartered in Melbourne, FL.

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.