Head-To-Head Analysis: Lockheed Martin Corporation (LMT) vs. The Competition
Lockheed Martin Corporation (NYSE: LMT) is one of 44 public companies in the “Aerospace & Defense” industry, but how does it compare to its peers? We will compare Lockheed Martin Corporation to similar companies based on the strength of its earnings, profitability, valuation, institutional ownership, dividends, analyst recommendations and risk.
Earnings & Valuation
This table compares Lockheed Martin Corporation and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Lockheed Martin Corporation||$49.05 billion||$6.23 billion||18.59|
|Lockheed Martin Corporation Competitors||$8.56 billion||$1.20 billion||81.43|
Lockheed Martin Corporation has higher revenue and earnings than its peers. Lockheed Martin Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Volatility & Risk
Lockheed Martin Corporation has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Lockheed Martin Corporation’s peers have a beta of 1.06, indicating that their average stock price is 6% more volatile than the S&P 500.
This table compares Lockheed Martin Corporation and its peers’ 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 Competitors||-5.04%||24.37%||3.84%|
Lockheed Martin Corporation pays an annual dividend of $7.28 per share and has a dividend yield of 2.3%. Lockheed Martin Corporation pays out 42.5% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.5% and pay out 36.1% of their earnings in the form of a dividend. Lockheed Martin Corporation has raised its dividend for 14 consecutive years.
Insider and Institutional Ownership
78.9% of Lockheed Martin Corporation shares are held by institutional investors. Comparatively, 70.3% of shares of all “Aerospace & Defense” companies are held by institutional investors. 0.4% of Lockheed Martin Corporation shares are held by insiders. Comparatively, 7.1% of shares of all “Aerospace & Defense” companies 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.
This is a summary of current ratings for Lockheed Martin Corporation and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lockheed Martin Corporation||0||6||8||0||2.57|
|Lockheed Martin Corporation Competitors||472||2088||2311||81||2.40|
Lockheed Martin Corporation currently has a consensus target price of $308.23, suggesting a potential downside of 3.15%. As a group, “Aerospace & Defense” companies have a potential upside of 3.32%. Given Lockheed Martin Corporation’s peers higher possible upside, analysts clearly believe Lockheed Martin Corporation has less favorable growth aspects than its peers.
Lockheed Martin Corporation beats its peers on 9 of the 15 factors compared.
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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