The Boeing Company (BA) vs Lockheed Martin Corporation (LMT)

The Boeing Company and Lockheed Martin Corporation are both Aerospace & Defense companies. The Boeing Company is the larger, with a market value of $156.4B against $120.7B — 1.3× the size. Lockheed Martin Corporation trades at the lower P/E: 19.1× against 74.2×. The Boeing Company grew revenue faster over the last twelve months: 24.8% against 7.20%. Lockheed Martin Corporation has the higher net margin (8.16% vs 2.22%) and the higher return on invested capital (22.4% vs 8.99%). Both pay a dividend; Lockheed Martin Corporation yields more (2.99% vs 0.16%). Across the 22 metrics below, Lockheed Martin Corporation leads on 17 and The Boeing Company on 5.

Valuation

Metric BA LMT Aerospace & Defense median
P/E 74.18 19.07 33.00
P/S 1.67 1.55 3.63
P/B 25.63 13.64 3.24
Price to free cash flow n/m 13.70 34.01
EV/EBITDA 26.85 12.59 18.69
EV/Sales 1.94 1.77 3.94
Earnings yield 1.35% 5.24% 1.31%
Free cash flow yield (0.09%) 7.30% 0.00%

Profitability

Metric BA LMT Aerospace & Defense median
Gross margin 4.68% 11.80% 25.48%
Operating margin 4.89% 11.88% 4.54%
Net margin 2.22% 8.16% 2.22%
Free cash flow margin (0.14%) 11.33% 0.00%
Return on equity 148.84% 89.16% 6.43%
Return on assets 1.30% 10.36% 2.70%
Return on invested capital 8.99% 22.42% 1.56%

Growth

Metric BA LMT Aerospace & Defense median
Revenue growth (TTM) 24.78% 7.20% 18.43%
EPS growth (last fiscal year) 113.51% (3.68%) —
Revenue growth, 5-year CAGR 9.00% 2.79% 9.62%
Net income growth, 5-year CAGR 0.00% (5.99%) 0.00%

Health

Metric BA LMT Aerospace & Defense median
Debt to equity 7.51 2.34 0.24
Current ratio 1.14 1.19 2.72
Net debt to EBITDA 3.96 1.87 1.12

Dividend

Metric BA LMT Aerospace & Defense median
Dividend yield 0.16% 2.99% 1.04%
Payout ratio 0.00 0.43 0.00

Size

Metric BA LMT Aerospace & Defense median
Market cap 156.38b 120.73b 2.52b

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