Lockheed Martin vs Boeing Which Outperforms?

Lockheed Martin and Boeing are two of the biggest names in the aerospace and defense industry, both renowned for their innovative technology and cutting-edge products. As major players in the defense sector, investors closely track the performance of their stocks to gauge the industry's health and stability. Lockheed Martin has a reputation for its focus on advanced military technology, while Boeing is known for its commercial aircraft and defense systems. The competition between these two titans of the industry makes their stocks a popular choice for investors looking to capitalize on the aerospace and defense market.

Lockheed Martin or Boeing?

When comparing Lockheed Martin and Boeing, 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 Lockheed Martin and Boeing.

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. Lockheed Martin has a dividend yield of 2.58%, while Boeing has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Lockheed Martin reports a 5-year dividend growth of 8.18% year and a payout ratio of 45.66%. On the other hand, Boeing reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Lockheed Martin P/E ratio at 17.60 and Boeing's P/E ratio at -13.16. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Lockheed Martin P/B ratio is 16.32 while Boeing's P/B ratio is -4.46.

Growth Investors:

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

Retail Investors:

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