Financial Survey: B/E Aerospace (BEAV) and Lockheed Martin Corporation (LMT)
B/E Aerospace (NASDAQ: BEAV) and Lockheed Martin Corporation (NYSE:LMT) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Valuation & Earnings
This table compares B/E Aerospace and Lockheed Martin Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lockheed Martin Corporation||$49.05 billion||1.77||$6.23 billion||$17.12||17.66|
Lockheed Martin Corporation has higher revenue and earnings than B/E Aerospace. Lockheed Martin Corporation is trading at a lower price-to-earnings ratio than B/E Aerospace, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for B/E Aerospace and Lockheed Martin Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lockheed Martin Corporation||0||6||8||0||2.57|
B/E Aerospace currently has a consensus target price of $59.57, suggesting a potential downside of 7.60%. Lockheed Martin Corporation has a consensus target price of $299.73, suggesting a potential downside of 0.85%. Given Lockheed Martin Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Lockheed Martin Corporation is more favorable than B/E Aerospace.
B/E Aerospace pays an annual dividend of $0.84 per share and has a dividend yield of 1.3%. Lockheed Martin Corporation pays an annual dividend of $7.28 per share and has a dividend yield of 2.4%. B/E Aerospace pays out 27.3% of its earnings in the form of a dividend. Lockheed Martin Corporation pays out 42.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. B/E Aerospace has raised its dividend for 14 consecutive years.
Volatility and Risk
B/E Aerospace has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Lockheed Martin Corporation has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.
Insider and Institutional Ownership
92.0% of B/E Aerospace shares are owned by institutional investors. Comparatively, 78.9% of Lockheed Martin Corporation shares are owned by institutional investors. 0.5% of B/E Aerospace shares are owned by company insiders. Comparatively, 0.4% of Lockheed Martin Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares B/E Aerospace and Lockheed Martin Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lockheed Martin Corporation||10.37%||221.92%||7.97%|
Lockheed Martin Corporation beats B/E Aerospace on 9 of the 14 factors compared between the two stocks.
B/E Aerospace Company Profile
B/E Aerospace, Inc. is a manufacturer of cabin interior products for commercial aircraft and business jets. The Company sells its products and provides services directly to airlines and aerospace manufacturer. It operates through two segments. The Company manufactures aircraft seats, offering a selection of first class, business class, tourist class and regional aircraft seats. It manufactures and sells seats, which include the seat frame, cushions, armrests, tray table and a range of optional features, such as adjustable lumbar supports, electrical actuation systems, footrests, reading lights, head/neck supports and other comfort amenities. The business jet segment’s products include a range of business jet seating and sofa products, including electric fully berthing lie-flat seats, air valves and oxygen delivery systems as well as sidewalls, bulkheads, credenzas, closets, galley structures, lavatories, wastewater systems, de-icing systems, cabin management systems and tables.
Lockheed Martin Corporation Company Profile
Lockheed Martin Corporation is a security and aerospace company. The Company operates through four segments. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Missiles and Fire Control segment provides air and missile defense systems; fire control systems; manned and unmanned ground vehicles, and energy management solutions. Rotary and Mission Systems segment provides design, manufacture, service and support for a range of military and civil helicopters; mission systems and sensors for rotary and fixed-wing aircraft; simulation and training services, and unmanned systems and technologies, among others. Space Systems segment is engaged in the research and development, design, engineering and production of satellites, strategic and defensive missile systems and space transportation systems.
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