Is CAE a Better Buy Than Lockheed Martin?
Lockheed Martin fell -13% during the past Week. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer CAE gives you more. CAE (CAE) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Lockheed Martin (LMT) stock, suggesting you may be better off investing in CAE
- CAE’s Last 12 Months revenue growth was 6.7%, vs. LMT’s 5.6%.
- In addition, its Last 3-Year Average revenue growth came in at 8.1%, ahead of LMT’s 4.4%.
- CAE leads on profitability over both periods – LTM margin of 12.9% and 3-year average of 12.1%.
These differences become even clearer when you look at the financials side by side. The table highlights how LMT’s fundamentals stack up against those of CAE on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| LMT | CAE | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 15.8 | 13.0 | CAE |
| Revenue Growth | |||
| Last Quarter | 9.1% | 2.3% | LMT |
| Last 12 Months | 5.6% | 6.7% | CAE |
| Last 3 Year Average | 4.4% | 8.1% | CAE |
| Operating Margins | |||
| Last 12 Months | 10.3% | 12.9% | CAE |
| Last 3 Year Average | 10.9% | 12.1% | CAE |
| Momentum | |||
| Last 3 Year Return | 19.0% | 10.1% | LMT |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
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See detailed fundamentals on Buy or Sell LMT Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| LMT Return | 3% | 40% | -4% | 10% | 2% | 15% | 80% | ||
| CAE Return | -9% | -23% | 12% | 18% | 20% | -16% | -8% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 4% | 90% | <=== | |
| Monthly Win Rates [3] | |||||||||
| LMT Win Rate | 50% | 67% | 42% | 58% | 42% | 50% | 51% | ||
| CAE Win Rate | 50% | 50% | 50% | 33% | 58% | 25% | 44% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| LMT Max Drawdown | -9% | -0% | -17% | -8% | -14% | 0% | -8% | <=== | |
| CAE Max Drawdown | -20% | -39% | 0% | -25% | -17% | -16% | -20% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | -9% | ||
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 4/23/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read LMT Dip Buyer Analyses to see how the stock has fallen and recovered in the past.
Still not sure about LMT or CAE? Consider portfolio approach.
Portfolios Are The Smarter Way To Invest
Stocks soar and sink – the key is staying invested. A balanced portfolio helps you ride market volatility, boosts gains, and reduces single stock risk.
Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.