Conrad Industries (OTCMKTS:CNRD) and General Dynamics (NYSE:GD) are both aerospace companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Conrad Industries -0.36% -1.72% -1.24%
General Dynamics 9.01% 27.22% 7.85%

Risk & Volatility

Conrad Industries has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, General Dynamics has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Valuation & Earnings

This table compares Conrad Industries and General Dynamics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Conrad Industries $189.15 million 0.44 -$2.12 million N/A N/A
General Dynamics $30.97 billion 1.68 $2.91 billion $9.95 17.68

General Dynamics has higher revenue and earnings than Conrad Industries.

Analyst Recommendations

This is a summary of recent recommendations for Conrad Industries and General Dynamics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Conrad Industries 0 0 0 0 N/A
General Dynamics 2 4 11 0 2.53

General Dynamics has a consensus target price of $228.71, suggesting a potential upside of 30.01%. Given General Dynamics’ higher possible upside, analysts plainly believe General Dynamics is more favorable than Conrad Industries.

Institutional and Insider Ownership

2.7% of Conrad Industries shares are owned by institutional investors. Comparatively, 85.2% of General Dynamics shares are owned by institutional investors. 31.5% of Conrad Industries shares are owned by insiders. Comparatively, 6.9% of General Dynamics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

General Dynamics pays an annual dividend of $3.72 per share and has a dividend yield of 2.1%. Conrad Industries does not pay a dividend. General Dynamics pays out 37.4% of its earnings in the form of a dividend. General Dynamics has increased its dividend for 20 consecutive years.

Summary

General Dynamics beats Conrad Industries on 11 of the 14 factors compared between the two stocks.

Conrad Industries Company Profile

Conrad Industries, Inc. engages in the construction, conversion, and repair of various steel and aluminum marine vessels in the United States. The company builds harbor tugs; specialty barges, such as crane, deck, ABS class, dry bulk cargo, aggregate, and well stim barges; inland tank, LPG inland tank, LPG pressure, LPG tank, and DS tank barges; and offshore support vessels, including liftboats, crew boats, offshore supply vessels, and offshore tugs, as well as other support equipment, such as deck and crane barges. It also builds inland pushboats comprising inland towboats, inland river push boats, and towboats; and ferries, which consist of passenger, and passenger and vehicle ferries. In addition, the company offers repairs and conversions, including electrical, mechanical, propulsion, and hull repairs to large-scale conversions of ships and barges; and engages in the fabrication of modular components for offshore floating production, storage, and offloading vessels, as well as drilling rigs. The company was founded in 1948 and is headquartered in Morgan City, Louisiana.

General Dynamics Company Profile

General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four business groups: Aerospace; Combat Systems; Information Systems and Technology; and Marine Systems. The Aerospace group designs, develops, manufactures, service and supports business-jet aircraft; and provides aircraft services, such as maintenance, aircraft management, charter, fixed-base operational, and staffing services. The Combat Systems group is involved in the design, development, production, modernization, and sustainment of combat vehicles, weapons systems, and munitions. This group offers wheeled combat and tactical vehicles; main battle tanks and tracked combat vehicles; weapon system, armaments, and mutations; and maintenance and logistics support and sustainment services. The Information Systems and Technology group provides technologies, products, and services that support a range of military, federal civilian, state, and local customers. This group offers information technology solutions and mission support services; mobile communication, computer and command-and-control mission systems; surveillance and reconnaissance solutions; and imagery, signals, and multi-intelligence systems for customers in the defense sector, intelligence and homeland security communities, and the United States allies. The Marine Systems group designs, constructs, and repairs surface ships and submarines for the United States Navy and Jones Act ships for commercial customers. This group offers nuclear-powered submarines, surface combatants, auxiliary and combat-logistics ships, and commercial product carriers and containerships; and provides design and engineering support services, as well as maintenance, modernization, and lifecycle support services. General Dynamics Corporation was incorporated in 1952 and is based in Falls Church, Virginia.

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