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 $252.0B against $122.9B — 2.0× the size. Lockheed Martin Corporation trades at the lower P/E: 20.3× against 33.7×. 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 (2.50% vs 1.45%). 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 20.26 33.73 31.81
P/S 1.65 2.80 3.55
P/B 14.49 3.85 2.59
Price to free cash flow 14.56 23.84 31.99
EV/EBITDA 13.28 19.55 18.08
EV/Sales 1.87 3.11 3.37
Earnings yield 4.94% 2.97% 1.38%
Free cash flow yield 6.87% 4.19% 0.21%

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% 1.43%
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% 24.27%
Revenue growth, 5-year CAGR 2.79% 9.38% 9.73%
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 2.50% 1.45% 0.90%
Payout ratio 0.51 0.50 0.32

Size

Metric LMT RTX Aerospace & Defense median
Market cap 122.93b 251.96b 2.19b

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