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 $133.1B against $74.6B — 1.8× the size. Northrop Grumman Corporation trades at the lower P/E: 16.5× against 20.0×. Lockheed Martin Corporation grew revenue faster over the last twelve months: 7.86% against 6.51%. Northrop Grumman Corporation has the higher net margin (10.4% vs 8.23%) and the lower return on invested capital (9.84% vs 23.7%). Both pay a dividend; Lockheed Martin Corporation yields more (2.44% vs 1.82%). 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 20.01 16.51 29.42
P/S 1.65 1.71 3.05
P/B 12.96 3.99 2.91
Price to free cash flow 15.56 17.74 29.52
EV/EBITDA 13.19 13.86 17.23
EV/Sales 1.83 1.95 3.25
Earnings yield 5.00% 6.06% 0.95%
Free cash flow yield 6.43% 5.64% 0.00%

Profitability

Metric LMT NOC Aerospace & Defense median
Gross margin 11.73% 20.02% 26.41%
Operating margin 11.78% 10.61% 3.69%
Net margin 8.23% 10.37% 2.74%
Free cash flow margin 10.59% 9.64% 0.73%
Return on equity 80.19% 26.07% 5.39%
Return on assets 10.44% 8.88% 2.18%
Return on invested capital 23.67% 9.84% 0.64%

Growth

Metric LMT NOC Aerospace & Defense median
Revenue growth (TTM) 7.86% 6.51% 18.03%
EPS growth (last fiscal year) (3.68%) 2.61% 24.80%
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 2.04 0.77 0.18
Current ratio 1.26 1.23 2.85
Net debt to EBITDA 1.87 1.80 1.29

Dividend

Metric LMT NOC Aerospace & Defense median
Dividend yield 2.44% 1.82% 0.89%
Payout ratio 0.49 0.30 0.30

Size

Metric LMT NOC Aerospace & Defense median
Market cap 133.10b 74.62b 1.52b

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