L3Harris Technologies Inc (LHX) vs Lockheed Martin Corporation (LMT)

L3Harris Technologies Inc and Lockheed Martin Corporation are both Aerospace & Defense companies. Lockheed Martin Corporation is the larger, with a market value of $120.7B against $44.5B — 2.7× the size. Lockheed Martin Corporation trades at the lower P/E: 19.1× against 23.9×. L3Harris Technologies Inc grew revenue faster over the last twelve months: 7.29% against 7.20%. Lockheed Martin Corporation has the higher net margin (8.16% vs 8.11%) and the higher return on invested capital (22.4% vs 5.12%). Both pay a dividend; Lockheed Martin Corporation yields more (2.99% vs 2.32%). Across the 23 metrics below, Lockheed Martin Corporation leads on 15 and L3Harris Technologies Inc on 8.

Valuation

Metric LHX LMT Aerospace & Defense median
P/E 23.86 19.07 33.00
P/S 1.93 1.55 3.63
P/B 2.23 13.64 3.24
Price to free cash flow 15.77 13.70 34.01
EV/EBITDA 14.60 12.59 18.69
EV/Sales 2.34 1.77 3.94
Earnings yield 4.19% 5.24% 1.31%
Free cash flow yield 6.34% 7.30% 0.00%

Profitability

Metric LHX LMT Aerospace & Defense median
Gross margin 25.48% 11.80% 25.48%
Operating margin 10.49% 11.88% 4.54%
Net margin 8.11% 8.16% 2.22%
Free cash flow margin 12.24% 11.33% 0.00%
Return on equity 9.50% 89.16% 6.43%
Return on assets 4.42% 10.36% 2.70%
Return on invested capital 5.12% 22.42% 1.56%

Growth

Metric LHX LMT Aerospace & Defense median
Revenue growth (TTM) 7.29% 7.20% 18.43%
EPS growth (last fiscal year) 8.39% (3.68%) —
Revenue growth, 5-year CAGR 3.74% 2.79% 9.62%
Net income growth, 5-year CAGR 7.49% (5.99%) 0.00%

Health

Metric LHX LMT Aerospace & Defense median
Debt to equity 0.55 2.34 0.24
Current ratio 1.18 1.19 2.72
Net debt to EBITDA 2.68 1.87 1.12

Dividend

Metric LHX LMT Aerospace & Defense median
Dividend yield 2.32% 2.99% 1.04%
Payout ratio 1.07 0.43 0.00

Size

Metric LHX LMT Aerospace & Defense median
Market cap 44.49b 120.73b 2.52b

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