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 $325.2B against $133.1B — 2.4× the size. Lockheed Martin Corporation trades at the lower P/E: 20.4× against 36.0×. GE Aerospace grew revenue faster over the last twelve months: 19.6% against 7.86%. GE Aerospace has the higher net margin (17.3% vs 8.23%) and the higher return on invested capital (27.4% vs 23.7%). Both pay a dividend; Lockheed Martin Corporation yields more (2.39% 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 35.97 20.43 28.48
P/S 6.18 1.68 2.95
P/B 18.31 13.23 2.68
Price to free cash flow 49.64 15.89 31.70
EV/EBITDA 24.57 13.44 16.85
EV/Sales 6.38 1.87 2.74
Earnings yield 2.78% 4.89% 0.89%
Free cash flow yield 2.01% 6.30% 0.00%

Profitability

Metric GE LMT Aerospace & Defense median
Gross margin 35.22% 11.73% 26.41%
Operating margin 23.56% 11.78% 3.69%
Net margin 17.31% 8.23% 2.74%
Free cash flow margin 15.68% 10.59% 0.00%
Return on equity 49.51% 80.19% 4.44%
Return on assets 7.13% 10.44% 1.90%
Return on invested capital 27.35% 23.67% 0.26%

Growth

Metric GE LMT Aerospace & Defense median
Revenue growth (TTM) 19.62% 7.86% 18.03%
EPS growth (last fiscal year) 35.89% (3.68%) 24.80%
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 1.09 2.04 0.20
Current ratio 0.98 1.26 2.85
Net debt to EBITDA 0.65 1.87 1.29

Dividend

Metric GE LMT Aerospace & Defense median
Dividend yield 0.56% 2.39% 0.91%
Payout ratio 0.20 0.49 0.30

Size

Metric GE LMT Aerospace & Defense median
Market cap 325.23b 133.10b 1.78b

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