L3Harris Technologies vs Lockheed Martin

L3Harris Technologies and Lockheed Martin are two prominent companies in the aerospace and defense industry, each with its own unique strengths and market positioning. L3Harris Technologies focuses on providing advanced technology solutions for government and commercial customers, while Lockheed Martin is known for its expertise in designing and manufacturing military aircraft and other defense systems. Investors looking to capitalize on the growth potential of the defense sector may find opportunities in both L3Harris Technologies and Lockheed Martin stocks, which have demonstrated resilience and stability in the market.

L3Harris Technologies or Lockheed Martin?

When comparing L3Harris Technologies 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 L3Harris Technologies 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. L3Harris Technologies has a dividend yield of 2.36%, while Lockheed Martin has a dividend yield of 2.6%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. L3Harris Technologies reports a 5-year dividend growth of 12.68% year and a payout ratio of 73.70%. On the other hand, Lockheed Martin reports a 5-year dividend growth of 8.18% year and a payout ratio of 45.22%.

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 L3Harris Technologies P/E ratio at 39.10 and Lockheed Martin's P/E ratio at 21.46. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. L3Harris Technologies P/B ratio is 2.47 while Lockheed Martin's P/B ratio is 23.41.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, L3Harris Technologies has seen a 5-year revenue growth of 0.78%, while Lockheed Martin's is 0.43%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with L3Harris Technologies's ROE at 6.36% and Lockheed Martin's ROE at 93.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $244.25 for L3Harris Technologies and $603.72 for Lockheed Martin. Over the past year, L3Harris Technologies's prices ranged from $169.55 to $249.00, with a yearly change of 46.86%. Lockheed Martin's prices fluctuated between $413.92 and $614.48, with a yearly change of 48.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.