Critical Survey: General Dynamics (NYSE:GD) versus ParaZero Technologies (NASDAQ:PRZO)

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

Institutional and Insider Ownership

1.4% of ParaZero Technologies shares are owned by institutional investors. Comparatively, 86.1% of General Dynamics shares are owned by institutional investors. 1.5% of General Dynamics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ParaZero Technologies	N/A	N/A	N/A
General Dynamics	8.01%	17.57%	7.38%

Valuation and Earnings

This table compares ParaZero Technologies and General Dynamics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ParaZero Technologies	$930,000.00	N/A	-$11.05 million	N/A	N/A
General Dynamics	$52.55 billion	1.80	$4.21 billion	$15.45	22.72

General Dynamics has higher revenue and earnings than ParaZero Technologies.

Analyst Recommendations

This is a summary of recent recommendations and price targets for ParaZero Technologies and General Dynamics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ParaZero Technologies	1	0	0	0	1.00
General Dynamics	1	8	13	1	2.61

General Dynamics has a consensus price target of $375.47, indicating a potential upside of 6.97%. Given General Dynamics’ stronger consensus rating and higher possible upside, analysts plainly believe General Dynamics is more favorable than ParaZero Technologies.

Summary

General Dynamics beats ParaZero Technologies on 11 of the 11 factors compared between the two stocks.

About ParaZero Technologies

ParaZero Technologies Ltd., an aerospace company, designs, develops, manufactures, distributes, and sells autonomous parachute safety systems for commercial drones in the United States, Israel, Canada, Europe, and internationally. The company offers SafeAir system, a smart parachute system that monitors unmanned aerial systems flight in real-time, as well as identifies critical failures and autonomously triggers a parachute in the event of an emergency. Its autonomous parachute system portfolio includes SafeAir Phantom, SafeAir Mavic, SafeAir Mavic 3, SafeAir M-200 Pro, SafeAir M-300 Pro, SafeAir M350 Pro, SafeAir M-600 Pro, SafeAir M30 Pro, SafeAir V1EX, SafeAir Parallel, SafeAir 350, and Custom Integrations. The company serves system manufacturers, resellers, and online stores. The company was incorporated in 2013 and is headquartered in Kiryat Ono, Israel.

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.