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

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for General Dynamics and XTI Aerospace, as reported 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 target price of $358.50, suggesting a potential upside of 4.77%. Given General Dynamics’ stronger consensus rating and higher possible upside, equities analysts plainly believe General Dynamics is more favorable than XTI Aerospace.

Valuation & Earnings

This table compares General Dynamics and XTI Aerospace”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
General Dynamics	$47.72 billion	1.94	$3.78 billion	$15.43	22.18
XTI Aerospace	$3.20 million	13.94	-$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.

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%

Risk & Volatility

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

Institutional & Insider Ownership

86.1% of General Dynamics shares are held by institutional investors. Comparatively, 11.7% of XTI Aerospace shares are held by institutional investors. 1.5% of General Dynamics shares are held by insiders. Comparatively, 7.4% of XTI Aerospace shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

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.