General Dynamics (NYSE:GD – Get Free Report) and Spire Global (NYSE:SPIR – Get Free Report) are both aerospace companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.
Profitability
This table compares General Dynamics and Spire Global’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
General Dynamics | 8.13% | 17.99% | 7.21% |
Spire Global | -98.42% | -492.01% | -37.32% |
Institutional & Insider Ownership
86.1% of General Dynamics shares are held by institutional investors. Comparatively, 20.0% of Spire Global shares are held by institutional investors. 1.5% of General Dynamics shares are held by insiders. Comparatively, 14.7% of Spire Global shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
General Dynamics | $47.72 billion | 1.83 | $3.78 billion | $14.90 | 21.79 |
Spire Global | $110.45 million | 2.55 | -$102.82 million | ($3.48) | -2.61 |
General Dynamics has higher revenue and earnings than Spire Global. Spire Global is trading at a lower price-to-earnings ratio than General Dynamics, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for General Dynamics and Spire Global, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
General Dynamics | 1 | 12 | 9 | 0 | 2.36 |
Spire Global | 0 | 1 | 4 | 0 | 2.80 |
General Dynamics presently has a consensus price target of $315.78, indicating a potential downside of 2.73%. Spire Global has a consensus price target of $18.20, indicating a potential upside of 100.73%. Given Spire Global’s stronger consensus rating and higher possible upside, analysts clearly believe Spire Global is more favorable than General Dynamics.
Volatility & Risk
General Dynamics has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Spire Global has a beta of 2.38, indicating that its share price is 138% more volatile than the S&P 500.
Summary
General Dynamics beats Spire Global on 9 of the 14 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 Spire Global
Spire Global, Inc. provides subscription-based data, insights, predictive analytics, and related project-based services worldwide. The company offers satellite-based aircraft tracking data to power applications, drive decision making, and improve cost efficiencies; data, insights, and predictive analytics for highly accurate ship monitoring, real-time and near real-time vessel updates, port operations, ship safety and route optimization; and space-based data, AI-powered insights, and predictive weather analytics for accurate weather forecasting. It serves maritime, weather, aviation, and space services industries. The company was formerly known as Nanosatisfi, Inc. and changed its name to Spire Global, Inc. in July 2014. Spire Global, Inc. is headquartered in Vienna, Virginia.
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