After NOC’s 18% Climb in a Month, LMT Looks Like the Stronger Long-Term Play
Lockheed Martin (LMT) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Northrop Grumman (NOC), suggesting you may be better off investing in LMT
- LMT’s quarterly revenue growth was 4.5%, vs. NOC’s -6.6%.
- In addition, its Last 12 Months revenue growth came in at 3.1%, ahead of NOC’s 0.6%.
- LMT leads on profitability over both periods – LTM margin of 10.3% and 3-year average of 11.8%.
NOC aerospace and defense company specializing in aircraft systems, satellites, missile defense, launch vehicles, and related ground and propulsion technologies worldwide. LMT engages in research, design, development, and sustainment of technology systems across aeronautics, missiles, rotary mission systems, and space, including satellites and missile defense.
Valuation & Performance Overview
| NOC | LMT | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 21.0 | 13.4 | LMT |
| Revenue Growth | |||
| Last Quarter | -6.6% | 4.5% | LMT |
| Last 12 Months | 0.6% | 3.1% | LMT |
| Last 3 Year Average | 4.6% | 3.0% | NOC |
| Operating Margins | |||
| Last 12 Months | 10.0% | 10.3% | LMT |
| Last 3 Year Average | 8.9% | 11.8% | LMT |
| Momentum | |||
| Last 3 Year Return | 29.5% | 8.7% | 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
But do these numbers tell the full story? Read Buy or Sell LMT Stock to see if Lockheed Martin’s edge holds up under the hood or if Northrop Grumman still has cards to play (see Buy or Sell NOC Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| NOC Return | -10% | 29% | 43% | -13% | 2% | 24% | 81% | ||
| LMT Return | -6% | 3% | 40% | -4% | 10% | -12% | 25% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 8% | 98% | <=== | |
| Monthly Win Rates [3] | |||||||||
| NOC Win Rate | 58% | 50% | 67% | 42% | 50% | 50% | 53% | ||
| LMT Win Rate | 50% | 50% | 67% | 42% | 58% | 33% | 50% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 50% | 61% | <=== | |
| Max Drawdowns [4] | |||||||||
| NOC Max Drawdown | -21% | -6% | -4% | -22% | -9% | -8% | -12% | <=== | |
| LMT Max Drawdown | -28% | -9% | -0% | -17% | -8% | -14% | -13% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | ||
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year till date (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.