LMT vs. HON, BA, GD, TDG, NOC, HEI, TDY, TXT, CW, and HII
Should you be buying Lockheed Martin stock or one of its competitors? The main competitors of Lockheed Martin include Honeywell International (HON), Boeing (BA), General Dynamics (GD), TransDigm Group (TDG), Northrop Grumman (NOC), HEICO (HEI), Teledyne Technologies (TDY), Textron (TXT), Curtiss-Wright (CW), and Huntington Ingalls Industries (HII). These companies are all part of the "aerospace & defense" industry.
Honeywell International (NASDAQ:HON) and Lockheed Martin (NYSE:LMT) are both large-cap multi-sector conglomerates companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, community ranking, valuation, institutional ownership, risk, profitability, dividends, analyst recommendations and media sentiment.
75.9% of Honeywell International shares are owned by institutional investors. Comparatively, 74.2% of Lockheed Martin shares are owned by institutional investors. 0.4% of Honeywell International shares are owned by company insiders. Comparatively, 0.1% of Lockheed Martin shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
In the previous week, Lockheed Martin had 7 more articles in the media than Honeywell International. MarketBeat recorded 21 mentions for Lockheed Martin and 14 mentions for Honeywell International. Honeywell International's average media sentiment score of 0.80 beat Lockheed Martin's score of 0.78 indicating that Lockheed Martin is being referred to more favorably in the news media.
Honeywell International received 421 more outperform votes than Lockheed Martin when rated by MarketBeat users. Likewise, 75.61% of users gave Honeywell International an outperform vote while only 58.87% of users gave Lockheed Martin an outperform vote.
Honeywell International currently has a consensus price target of $215.71, suggesting a potential upside of 9.17%. Lockheed Martin has a consensus price target of $485.40, suggesting a potential upside of 7.03%. Given Lockheed Martin's higher probable upside, equities analysts plainly believe Honeywell International is more favorable than Lockheed Martin.
Honeywell International pays an annual dividend of $4.32 per share and has a dividend yield of 2.2%. Lockheed Martin pays an annual dividend of $12.60 per share and has a dividend yield of 2.8%. Honeywell International pays out 50.1% of its earnings in the form of a dividend. Lockheed Martin pays out 46.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Honeywell International has raised its dividend for 13 consecutive years and Lockheed Martin has raised its dividend for 21 consecutive years. Lockheed Martin is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Honeywell International has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Lockheed Martin has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.
Lockheed Martin has higher revenue and earnings than Honeywell International. Lockheed Martin is trading at a lower price-to-earnings ratio than Honeywell International, indicating that it is currently the more affordable of the two stocks.
Honeywell International has a net margin of 15.52% compared to Honeywell International's net margin of 9.73%. Honeywell International's return on equity of 85.96% beat Lockheed Martin's return on equity.
Summary
Lockheed Martin beats Honeywell International on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding LMT and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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