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 $149.2B against $122.9B — 1.2× the size. Lockheed Martin Corporation trades at the lower P/E: 20.3× against 71.2×. 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%). Across the 21 metrics below, Lockheed Martin Corporation leads on 15 and The Boeing Company on 6.

Valuation

Metric BA LMT Aerospace & Defense median
P/E 71.24 20.26 31.81
P/S 1.60 1.65 3.55
P/B 24.61 14.49 2.59
Price to free cash flow n/m 14.56 31.99
EV/EBITDA 25.93 13.28 18.08
EV/Sales 1.88 1.87 3.37
Earnings yield 1.40% 4.94% 1.38%
Free cash flow yield (0.09%) 6.87% 0.21%

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% 1.43%
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%) 24.27%
Revenue growth, 5-year CAGR 9.00% 2.79% 9.73%
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 — 2.50% 0.90%
Payout ratio — 0.51 0.32

Size

Metric BA LMT Aerospace & Defense median
Market cap 149.17b 122.93b 2.19b

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