GE Aerospace (GE) vs Lockheed Martin Corporation (LMT)

GE Aerospace and Lockheed Martin Corporation are both Aerospace & Defense companies. GE Aerospace is the larger, with a market value of $333.1B against $120.7B — 2.8× the size. Lockheed Martin Corporation trades at the lower P/E: 19.1× against 38.2×. GE Aerospace grew revenue faster over the last twelve months: 21.7% against 7.20%. GE Aerospace has the higher net margin (17.7% vs 8.16%) and the higher return on invested capital (26.5% vs 22.4%). Both pay a dividend; Lockheed Martin Corporation yields more (2.99% vs 0.29%). Across the 23 metrics below, Lockheed Martin Corporation leads on 13 and GE Aerospace on 10.

Valuation

Metric GE LMT Aerospace & Defense median
P/E 38.21 19.07 33.00
P/S 6.72 1.55 3.63
P/B 19.04 13.64 3.24
Price to free cash flow 49.62 13.70 34.01
EV/EBITDA 26.96 12.59 18.69
EV/Sales 6.91 1.77 3.94
Earnings yield 2.62% 5.24% 1.31%
Free cash flow yield 2.02% 7.30% 0.00%

Profitability

Metric GE LMT Aerospace & Defense median
Gross margin 35.38% 11.80% 25.48%
Operating margin 23.20% 11.88% 4.54%
Net margin 17.72% 8.16% 2.22%
Free cash flow margin 16.89% 11.33% 0.00%
Return on equity 48.22% 89.16% 6.43%
Return on assets 7.09% 10.36% 2.70%
Return on invested capital 26.53% 22.42% 1.56%

Growth

Metric GE LMT Aerospace & Defense median
Revenue growth (TTM) 21.69% 7.20% 18.43%
EPS growth (last fiscal year) 35.89% (3.68%) —
Revenue growth, 5-year CAGR (9.57%) 2.79% 9.62%
Net income growth, 5-year CAGR 10.72% (5.99%) 0.00%

Health

Metric GE LMT Aerospace & Defense median
Debt to equity 1.07 2.34 0.24
Current ratio 0.98 1.19 2.72
Net debt to EBITDA 0.65 1.87 1.12

Dividend

Metric GE LMT Aerospace & Defense median
Dividend yield 0.29% 2.99% 1.04%
Payout ratio 0.03 0.43 0.00

Size

Metric GE LMT Aerospace & Defense median
Market cap 333.06b 120.73b 2.52b

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