Lockheed Martin Corporation (LMT) vs Rocket Lab Corporation (RKLB)

Lockheed Martin Corporation and Rocket Lab Corporation are both Aerospace & Defense companies. Lockheed Martin Corporation is the larger, with a market value of $120.7B against $44.8B — 2.7× the size. Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; Lockheed Martin Corporation trades at 19.1×. Rocket Lab Corporation grew revenue faster over the last twelve months: 52.5% against 7.20%. Lockheed Martin Corporation has the higher net margin (8.16% vs −21.5%) and the higher return on invested capital (22.4% vs −11.5%). Across the 19 metrics below, Lockheed Martin Corporation leads on 11 and Rocket Lab Corporation on 8.

Valuation

Metric LMT RKLB Aerospace & Defense median
P/E 19.07 n/m 33.00
P/S 1.55 60.54 3.63
P/B 13.64 13.33 3.24
Price to free cash flow 13.70 n/m 34.01
EV/EBITDA 12.59 n/m 18.69
EV/Sales 1.77 57.61 3.94
Earnings yield 5.24% (0.37%) 1.31%
Free cash flow yield 7.30% (0.79%) 0.00%

Profitability

Metric LMT RKLB Aerospace & Defense median
Gross margin 11.80% 37.26% 25.48%
Operating margin 11.88% (29.06%) 4.54%
Net margin 8.16% (21.51%) 2.22%
Free cash flow margin 11.33% (48.13%) 0.00%
Return on equity 89.16% (7.92%) 6.43%
Return on assets 10.36% (5.76%) 2.70%
Return on invested capital 22.42% (11.46%) 1.56%

Growth

Metric LMT RKLB Aerospace & Defense median
Revenue growth (TTM) 7.20% 52.53% 18.43%
EPS growth (last fiscal year) (3.68%) 2.63% —
Revenue growth, 5-year CAGR 2.79% 76.47% 9.62%
Net income growth, 5-year CAGR (5.99%) 0.00% 0.00%

Health

Metric LMT RKLB Aerospace & Defense median
Debt to equity 2.34 0.01 0.24
Current ratio 1.19 5.48 2.72
Net debt to EBITDA 1.87 4.66 1.12

Dividend

Metric LMT RKLB Aerospace & Defense median
Dividend yield 2.99% — 1.04%
Payout ratio 0.43 0.00 0.00

Size

Metric LMT RKLB Aerospace & Defense median
Market cap 120.73b 44.78b 2.52b

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