Boeing vs Lockheed Martin Which Offers More Value?

Boeing and Lockheed Martin are two of the leading aerospace and defense companies in the world, with a long history of innovation and excellence. When it comes to their stocks, both companies have experienced fluctuations in recent years due to factors such as global economic conditions, government contracts, and competition. Investors looking to capitalize on the aerospace and defense sector may find opportunities in both Boeing and Lockheed Martin stocks, but careful analysis and monitoring of market trends are essential to make informed decisions.

Boeing or Lockheed Martin?

When comparing Boeing and Lockheed Martin, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Boeing and Lockheed Martin.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Boeing has a dividend yield of -%, while Lockheed Martin has a dividend yield of 2.58%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Boeing reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Lockheed Martin reports a 5-year dividend growth of 8.18% year and a payout ratio of 45.66%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Boeing P/E ratio at -13.16 and Lockheed Martin's P/E ratio at 17.60. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Boeing P/B ratio is -4.46 while Lockheed Martin's P/B ratio is 16.32.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Boeing has seen a 5-year revenue growth of -0.26%, while Lockheed Martin's is 0.43%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Boeing's ROE at 42.10% and Lockheed Martin's ROE at 99.40%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $166.33 for Boeing and $492.18 for Lockheed Martin. Over the past year, Boeing's prices ranged from $137.03 to $267.54, with a yearly change of 95.24%. Lockheed Martin's prices fluctuated between $413.92 and $618.95, with a yearly change of 49.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.