Honeywell Aerospace inc. (HONA) vs Lockheed Martin Corporation (LMT)

Honeywell Aerospace inc. and Lockheed Martin Corporation are both Aerospace & Defense companies. Lockheed Martin Corporation is the larger, with a market value of $133.1B against $47.4B — 2.8× the size. Honeywell Aerospace inc. has the higher net margin (13.7% vs 8.23%) and the lower return on invested capital (19.8% vs 23.7%). Only Lockheed Martin Corporation pays a dividend (2.39%). Across the 14 metrics below, Lockheed Martin Corporation leads on 9 and Honeywell Aerospace inc. on 5.

Valuation

Metric HONA LMT Aerospace & Defense median
P/E — 20.43 28.48
P/S 2.64 1.68 2.95
P/B n/m 13.23 2.68
Price to free cash flow n/m 15.89 31.70
EV/EBITDA 15.60 13.44 16.85
EV/Sales 3.43 1.87 2.74
Earnings yield — 4.89% 0.89%
Free cash flow yield 0.00% 6.30% 0.00%

Profitability

Metric HONA LMT Aerospace & Defense median
Gross margin 36.23% 11.73% 26.41%
Operating margin 20.84% 11.78% 3.69%
Net margin 13.68% 8.23% 2.74%
Free cash flow margin 0.00% 10.59% 0.00%
Return on equity 0.00% 80.19% 4.44%
Return on assets 0.00% 10.44% 1.90%
Return on invested capital 19.84% 23.67% 0.26%

Growth

Metric HONA LMT Aerospace & Defense median
Revenue growth (TTM) — 7.86% 18.03%
EPS growth (last fiscal year) — (3.68%) 24.80%
Revenue growth, 5-year CAGR — 2.79% 9.73%
Net income growth, 5-year CAGR — (5.99%) 0.00%

Health

Metric HONA LMT Aerospace & Defense median
Debt to equity (6.37) 2.04 0.20
Current ratio 1.64 1.26 2.85
Net debt to EBITDA — 1.87 1.29

Dividend

Metric HONA LMT Aerospace & Defense median
Dividend yield 0.00% 2.39% 0.91%
Payout ratio — 0.49 0.30

Size

Metric HONA LMT Aerospace & Defense median
Market cap 47.42b 133.10b 1.78b

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