Comparing Defense Stocks: Lockheed Martin vs. RTX
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 17 2026
0mins
Source: Fool
- Market Position: Lockheed Martin, the largest U.S. defense contractor with a market cap of $148 billion, offers a diverse portfolio including aircraft and missiles, notably the F-35 fighter jet, which is the most expensive weapons program globally, driving long-term revenue growth.
- Financial Performance: Lockheed Martin's P/E ratio stands at 30, lower than RTX's 41, and its dividend yield of 2.1% surpasses RTX's 1.3%, indicating stronger shareholder returns, with over two decades of consistent dividend increases boosting investor confidence.
- Financial Stability: Lockheed Martin's leverage ratio of 2.3 is more favorable than RTX's 3.2, reflecting stronger financial health; both companies hold investment-grade credit ratings, but Lockheed Martin's A- rating exceeds RTX's BBB+.
- Industry Outlook: Given the escalating tensions in the Middle East, increased U.S. defense spending is anticipated, positioning both Lockheed Martin and RTX to benefit from rising military replenishment demands, thereby reinforcing their leadership in the defense sector.
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Analyst Views on LMT
Wall Street analysts forecast LMT stock price to fall
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 623.870
Low
430.00
Averages
535.50
High
605.00
Current: 623.870
Low
430.00
Averages
535.50
High
605.00
About LMT
Lockheed Martin Corporation is a global aerospace and defense company. The Company is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Its segments include Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft. MFC segment provides air and missile defense systems, manned and unmanned ground vehicles, energy management solutions, and others. RMS segment designs, manufactures, services and supports various military and commercial helicopters, surface ships, sea and land-based missile defense systems, and others. Its Space segment is engaged in the research and design, development, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Technical Validation: During the mission, Orion's heat shield withstood temperatures nearing 5,000 degrees Fahrenheit, while its parachute system executed a precise descent sequence to ensure astronaut safety upon return, validating its performance in extreme environments and laying the groundwork for future lunar exploration.
- Data Collection and Analysis: The astronauts gathered essential data during the mission, which will be used to refine systems and operations in preparation for Artemis III's critical docking with NASA's Human Landing System, further advancing the timeline for human return to the Moon.
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- Stock Underperformance: Lockheed Martin (LMT) has seen its stock drop approximately 7% since the conflict began, defying expectations that defense stocks would rally, indicating investor caution regarding short-term prospects.
- Successful Artemis II Return: The successful return of Lockheed's Artemis II mission, which completed a 700,000-mile, 10-day journey around the Moon, enhances the company's credibility for future NASA and deep-space contracts, strengthening its competitive position.
- Optimistic Defense Budget Outlook: While near-term market sentiment remains cautious, the rising U.S. defense budget and a $4.7 billion contract for Patriot missile production keep bullish long-term growth prospects alive for Lockheed Martin.
- Analyst Rating Adjustment: Jefferies raised LMT's price target from $630 to $640, although their forecast for first-quarter revenue is slightly below consensus, reflecting strong confidence in the company's long-term performance despite short-term challenges.
See More
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- Surge in Oil Prices: Crude oil futures jumped over 8% on Monday as the U.S. Navy prepares to blockade Iranian ports, with U.S. crude surpassing $100 per barrel and Brent also rising over 8%, indicating significant implications for the global energy market.
- Military Blockade Announcement: U.S. Central Command stated that it will begin blocking all maritime traffic entering and exiting Iranian ports at 10 a.m. ET on Monday, a move that could disrupt international supply chains related to Iran and significantly impact global oil prices.
- Trump's Dispute with the Pope: Trump criticized Pope Leo XIV on social media for his stance on the U.S. war in Iran, asserting he does not want a Pope who criticizes him, reflecting a hardline approach in both domestic and foreign policy that may affect his supporters' confidence.
- Hungarian Election Results: The election results in Hungary indicate a victory for the opposition Tisza party, marking the first new government in 16 years, which poses a challenge to Trump and his allies in Europe and may lead to future policy adjustments.
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- Surge in Oil Prices: Trump's announcement of the blockade caused oil prices to surge over 8%, reflecting market concerns over a potential energy crisis while exacerbating investor anxiety and impacting global market performance.
- Market Reaction: Following the blockade news, Asian markets fell in early Monday trading, and U.S. futures also tumbled, with Dow Jones Industrial Average futures losing 517 points, indicating a pessimistic sentiment among investors regarding the economic outlook.
- Decline in Consumer Confidence: American consumer confidence plunged to a record low in April, reflecting the domestic economic impact of the ongoing conflict, further intensifying market uncertainty.
See More
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- Significant Price Advantage: SpaceX raised the price of Falcon 9 launches by 6.1% to $74 million, still undercutting competitors who charge over $100 million, further solidifying its market share.
- High Profit Margin Potential: Analysts estimate that SpaceX's cost per launch could be as low as $17 million, suggesting an operating margin of up to 77%, indicating the sustainability of its business model.
- Diversified Revenue Sources: While SpaceX's rocket launch business is profitable, its Starlink and xAI ventures may incur losses, with projected total revenue of $18.5 billion but losses of $5 billion in 2025, prompting investors to monitor overall financial health.
See More
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- Price Strategy Adjustment: SpaceX raised the launch price of its Falcon 9 rocket by 6.1% to $74 million, leveraging its unique reusability technology to significantly undercut competitors' launch costs, thereby attracting more customers.
- Profitability Analysis: Analysts estimate that SpaceX's cost per Falcon 9 launch could be as low as $17 million, which, if accurate, would yield an operating margin as high as 77%, giving SpaceX a strong competitive edge in profitability within the aerospace industry.
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