Lockheed Martin Corporation (LMT) vs RTX Corporation (RTX)

Lockheed Martin Corporation and RTX Corporation are both Aerospace & Defense companies. RTX Corporation is the larger, with a market value of $253.9B against $120.7B — 2.1× the size. Lockheed Martin Corporation trades at the lower P/E: 19.1× against 32.9×. RTX Corporation grew revenue faster over the last twelve months: 11.8% against 7.20%. RTX Corporation has the higher net margin (8.28% vs 8.16%) and the lower return on invested capital (6.74% vs 22.4%). Both pay a dividend; Lockheed Martin Corporation yields more (2.99% vs 2.71%). Across the 23 metrics below, Lockheed Martin Corporation leads on 14 and RTX Corporation on 9.

Valuation

Metric LMT RTX Aerospace & Defense median
P/E 19.07 32.94 33.00
P/S 1.55 2.74 3.63
P/B 13.64 3.76 3.24
Price to free cash flow 13.70 23.29 34.01
EV/EBITDA 12.59 19.14 18.69
EV/Sales 1.77 3.05 3.94
Earnings yield 5.24% 3.04% 1.31%
Free cash flow yield 7.30% 4.29% 0.00%

Profitability

Metric LMT RTX Aerospace & Defense median
Gross margin 11.80% 20.35% 25.48%
Operating margin 11.88% 11.21% 4.54%
Net margin 8.16% 8.28% 2.22%
Free cash flow margin 11.33% 11.75% 0.00%
Return on equity 89.16% 11.70% 6.43%
Return on assets 10.36% 4.54% 2.70%
Return on invested capital 22.42% 6.74% 1.56%

Growth

Metric LMT RTX Aerospace & Defense median
Revenue growth (TTM) 7.20% 11.84% 18.43%
EPS growth (last fiscal year) (3.68%) 39.72% —
Revenue growth, 5-year CAGR 2.79% 9.38% 9.62%
Net income growth, 5-year CAGR (5.99%) 0.00% 0.00%

Health

Metric LMT RTX Aerospace & Defense median
Debt to equity 2.34 0.55 0.24
Current ratio 1.19 1.01 2.72
Net debt to EBITDA 1.87 2.23 1.12

Dividend

Metric LMT RTX Aerospace & Defense median
Dividend yield 2.99% 2.71% 1.04%
Payout ratio 0.43 0.59 0.00

Size

Metric LMT RTX Aerospace & Defense median
Market cap 120.73b 253.92b 2.52b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack