Lockheed Martin Corporation (LMT) vs Northrop Grumman Corporation (NOC)

Lockheed Martin Corporation and Northrop Grumman Corporation are both Aerospace & Defense companies. Lockheed Martin Corporation is the larger, with a market value of $122.9B against $71.0B — 1.7× the size. Northrop Grumman Corporation trades at the lower P/E: 16.5× against 20.3×. Lockheed Martin Corporation grew revenue faster over the last twelve months: 7.20% against 5.90%. Northrop Grumman Corporation has the higher net margin (10.5% vs 8.16%) and the lower return on invested capital (9.58% vs 22.4%). Both pay a dividend; Lockheed Martin Corporation yields more (2.50% vs 1.84%). Across the 23 metrics below, Lockheed Martin Corporation leads on 14 and Northrop Grumman Corporation on 9.

Valuation

Metric LMT NOC Aerospace & Defense median
P/E 20.26 16.48 31.81
P/S 1.65 1.72 3.55
P/B 14.49 4.13 2.59
Price to free cash flow 14.56 20.26 31.99
EV/EBITDA 13.28 14.05 18.08
EV/Sales 1.87 2.00 3.37
Earnings yield 4.94% 6.07% 1.38%
Free cash flow yield 6.87% 4.94% 0.21%

Profitability

Metric LMT NOC Aerospace & Defense median
Gross margin 11.80% 20.06% 25.48%
Operating margin 11.88% 10.72% 4.54%
Net margin 8.16% 10.48% 2.22%
Free cash flow margin 11.33% 8.50% 1.43%
Return on equity 89.16% 26.96% 6.43%
Return on assets 10.36% 8.97% 2.70%
Return on invested capital 22.42% 9.58% 1.56%

Growth

Metric LMT NOC Aerospace & Defense median
Revenue growth (TTM) 7.20% 5.90% 18.43%
EPS growth (last fiscal year) (3.68%) 2.61% 24.27%
Revenue growth, 5-year CAGR 2.79% 2.66% 9.73%
Net income growth, 5-year CAGR (5.99%) 5.57% 0.00%

Health

Metric LMT NOC Aerospace & Defense median
Debt to equity 2.34 0.81 0.24
Current ratio 1.19 1.17 2.72
Net debt to EBITDA 1.87 1.80 1.12

Dividend

Metric LMT NOC Aerospace & Defense median
Dividend yield 2.50% 1.84% 0.90%
Payout ratio 0.51 0.30 0.32

Size

Metric LMT NOC Aerospace & Defense median
Market cap 122.93b 70.98b 2.19b

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