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 $323.7B against $122.9B — 2.6× the size. Lockheed Martin Corporation trades at the lower P/E: 20.3× against 36.7×. 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 (2.50% vs 0.56%). 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 36.73 20.26 31.81
P/S 6.46 1.65 3.55
P/B 18.30 14.49 2.59
Price to free cash flow 47.70 14.56 31.99
EV/EBITDA 25.95 13.28 18.08
EV/Sales 6.65 1.87 3.37
Earnings yield 2.72% 4.94% 1.38%
Free cash flow yield 2.10% 6.87% 0.21%

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% 1.43%
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%) 24.27%
Revenue growth, 5-year CAGR (9.57%) 2.79% 9.73%
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 0.56% 2.50% 0.90%
Payout ratio 0.21 0.51 0.32

Size

Metric GE LMT Aerospace & Defense median
Market cap 323.72b 122.93b 2.19b

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