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 $258.9B against $133.1B — 1.9× the size. Lockheed Martin Corporation trades at the lower P/E: 20.0× against 30.4×. RTX Corporation grew revenue faster over the last twelve months: 11.6% against 7.86%. RTX Corporation has the higher net margin (8.75% vs 8.23%) and the lower return on invested capital (7.12% vs 23.7%). Both pay a dividend; Lockheed Martin Corporation yields more (2.44% vs 1.49%). Across the 23 metrics below, Lockheed Martin Corporation leads on 15 and RTX Corporation on 8.

Valuation

Metric LMT RTX Aerospace & Defense median
P/E 20.01 30.38 29.42
P/S 1.65 2.67 3.05
P/B 12.96 3.61 2.91
Price to free cash flow 15.56 28.04 29.52
EV/EBITDA 13.19 18.12 17.23
EV/Sales 1.83 2.96 3.25
Earnings yield 5.00% 3.29% 0.95%
Free cash flow yield 6.43% 3.57% 0.00%

Profitability

Metric LMT RTX Aerospace & Defense median
Gross margin 11.73% 21.10% 26.41%
Operating margin 11.78% 11.77% 3.69%
Net margin 8.23% 8.75% 2.74%
Free cash flow margin 10.59% 9.51% 0.73%
Return on equity 80.19% 12.24% 5.39%
Return on assets 10.44% 4.87% 2.18%
Return on invested capital 23.67% 7.12% 0.64%

Growth

Metric LMT RTX Aerospace & Defense median
Revenue growth (TTM) 7.86% 11.63% 18.03%
EPS growth (last fiscal year) (3.68%) 39.72% 24.80%
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 2.04 0.53 0.18
Current ratio 1.26 1.05 2.85
Net debt to EBITDA 1.87 2.23 1.29

Dividend

Metric LMT RTX Aerospace & Defense median
Dividend yield 2.44% 1.49% 0.89%
Payout ratio 0.49 0.46 0.30

Size

Metric LMT RTX Aerospace & Defense median
Market cap 133.10b 258.93b 1.52b

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