Can Lockheed Martin Outrun Northrop Grumman in the Next Rally?
Northrop Grumman fell -5.5% during the past Day. 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 Lockheed Martin gives you more. Lockheed Martin (LMT) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Northrop Grumman (NOC) stock, suggesting you may be better off investing in LMT
- LMT’s quarterly revenue growth was 8.8%, vs. NOC’s 4.3%.
- In addition, its Last 12 Months revenue growth came in at 2.9%, ahead of NOC’s -0.1%.
- LMT’s 3-year average margin is stronger: 11.0% vs. NOC’s 9.0%.
These differences become even clearer when you look at the financials side by side. The table highlights how NOC’s fundamentals stack up against those of LMT on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| NOC | LMT | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 20.1 | 19.2 | LMT |
| Revenue Growth | |||
| Last Quarter | 4.3% | 8.8% | LMT |
| Last 12 Months | -0.1% | 2.9% | LMT |
| Last 3 Year Average | 5.2% | 4.3% | NOC |
| Operating Margins | |||
| Last 12 Months | 10.0% | 8.2% | NOC |
| Last 3 Year Average | 9.0% | 11.0% | LMT |
| Momentum | |||
| Last 3 Year Return | 16.4% | 13.9% | NOC |
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.
See more revenue details: NOC Revenue Comparison | LMT Revenue Comparison
See more margin details: NOC Operating Income Comparison | LMT Operating Income Comparison
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See detailed fundamentals on Buy or Sell LMT Stock and Buy or Sell NOC 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 | |||||||||
| NOC Return | 29% | 43% | -13% | 2% | 24% | 7% | 118% | <=== | |
| LMT Return | 3% | 40% | -4% | 10% | 2% | 8% | 69% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 1% | 85% | ||
| Monthly Win Rates [3] | |||||||||
| NOC Win Rate | 50% | 67% | 42% | 50% | 58% | 100% | 61% | ||
| LMT Win Rate | 50% | 67% | 42% | 58% | 42% | 100% | 60% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 100% | 71% | <=== | |
| Max Drawdowns [4] | |||||||||
| NOC Max Drawdown | -6% | -4% | -22% | -9% | -8% | 0% | -8% | ||
| LMT Max Drawdown | -9% | -0% | -17% | -8% | -14% | 0% | -8% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | 0% | -7% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 1/7/2026 (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 NOC or LMT? Consider portfolio approach.
Portfolios Win When Stock Picks Fall Short
Stocks can jump or crash but long term success comes from staying invested. The right portfolio helps you ride gains and cushion single stock drops
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.