Lockheed Martin vs Raytheon Technologies Which Is Superior?

Lockheed Martin and Raytheon Technologies are two of the largest defense contractors in the United States, competing for government contracts and dominating the aerospace and defense industry. Both companies have a strong track record of innovation, technological advancement, and reliable performance, making them attractive investments for many investors seeking exposure to the defense sector. As key players in the industry, Lockheed Martin and Raytheon Technologies present unique opportunities for growth and stability within a rapidly evolving market.

Lockheed Martin or Raytheon Technologies?

When comparing Lockheed Martin and Raytheon Technologies, 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 Raytheon Technologies.

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 Raytheon Technologies has a dividend yield of 2.11%. 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, Raytheon Technologies reports a 5-year dividend growth of -3.93% year and a payout ratio of 67.44%.

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 Raytheon Technologies's P/E ratio at 33.27. 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 Raytheon Technologies's P/B ratio is 2.57.

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 Raytheon Technologies's is -0.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Lockheed Martin's ROE at 99.40% and Raytheon Technologies's ROE at 7.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $492.18 for Lockheed Martin and $115.97 for Raytheon Technologies. Over the past year, Lockheed Martin's prices ranged from $413.92 to $618.95, with a yearly change of 49.53%. Raytheon Technologies's prices fluctuated between $79.67 and $128.70, with a yearly change of 61.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.