Live Report · Updated January 26, 2026

General Dynamics vs L3Harris

This page offers a detailed comparison between General Dynamics Corporation and L3Harris Technologies Inc. We delve into their respective business models, analyse their financial performance, and consider their market context to provide an overview for those interested in these defence industry stocks. Educational content, not financial advice.

This page offers a detailed comparison between General Dynamics Corporation and L3Harris Technologies Inc. We delve into their respective business models, analyse their financial performance, and cons...

Comparison Snapshot

Key Financial Metrics

GD

Metric

LHX

$98.20B

Market Cap

$66.25B

4.50%

Potential Profit

-6.20%

Buy

Analyst Rating

Buy

Why It's Moving

General Dynamics short interest surges amid mixed analyst signals and recent insider selling.

Short interest rose sharply to 3.07 million shares, with days-to-cover at 3.1, indicating heightened investor skepticism on near-term performance.
VP David Paddock offloaded 20,360 shares for $6.82 million on Dec. 17, slashing his stake by 35.7% and spotlighting insider caution.
Goldman Sachs hiked its price target to $293 but kept a 'sell' rating, clashing with the broader 'Moderate Buy' consensus averaging $367.

Sentiment:

🐻Bearish

Pentagon's $1B Missile Bet Supercharges L3Harris' Defense Pivot and Dividend Boost.

Secured $1B convertible preferred investment from DoW into solid rocket motors, converting to equity at the planned H2 2026 Missile Solutions IPO, boosting capacity for key programs like PAC-3 and THAAD.
Raised quarterly dividend from $1.20 to $1.25 per share, lifting the annual payout to $5.00 and underscoring confidence in cash flow amid restructuring.
Reorganized into three streamlined segments—Space & Mission Systems, Communications & Spectrum Dominance, and Missile Solutions—to accelerate 'Arsenal of Freedom' production for warfighter needs.

Sentiment:

🐃Bullish

General Dynamics short interest surges amid mixed analyst signals and recent insider selling.

Short interest rose sharply to 3.07 million shares, with days-to-cover at 3.1, indicating heightened investor skepticism on near-term performance.
VP David Paddock offloaded 20,360 shares for $6.82 million on Dec. 17, slashing his stake by 35.7% and spotlighting insider caution.
Goldman Sachs hiked its price target to $293 but kept a 'sell' rating, clashing with the broader 'Moderate Buy' consensus averaging $367.

Sentiment:

🐻Bearish

Pentagon's $1B Missile Bet Supercharges L3Harris' Defense Pivot and Dividend Boost.

Secured $1B convertible preferred investment from DoW into solid rocket motors, converting to equity at the planned H2 2026 Missile Solutions IPO, boosting capacity for key programs like PAC-3 and THAAD.
Raised quarterly dividend from $1.20 to $1.25 per share, lifting the annual payout to $5.00 and underscoring confidence in cash flow amid restructuring.
Reorganized into three streamlined segments—Space & Mission Systems, Communications & Spectrum Dominance, and Missile Solutions—to accelerate 'Arsenal of Freedom' production for warfighter needs.

Sentiment:

🐃Bullish

Investment Analysis

General Dynamics

GD

Pros

Substantial $90 billion contract backlog ensures revenue visibility through 2027.
Consistent revenue growth of 4-6% annually driven by stable defence sector demand.
Strong balance sheet features low long-term debt of $7.26 billion relative to $95 billion market cap.

Considerations

Moderate EPS growth of 2.61% over five years trails broader market averages.
Reliance on U.S. defence budgets exposes firm to potential policy shifts or cuts.
Cyclical exposure to government procurement delays impacts short-term profitability.

L3Harris

LHX

Pros

Diversified portfolio across IT, mission systems, and electronics bolsters resilience.
Robust backlog supports steady revenue amid rising global defence spending.
Favourable interest coverage ratio of over 16 enhances financial flexibility.

Considerations

Quick ratio of 0.78 signals potential liquidity strains in adverse conditions.
High execution risks in complex defence contracts could pressure margins.
Sensitivity to U.S. regulatory changes heightens operational uncertainties.

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