Investing.com -- Lockheed Martin Corporation (LMT)offers stronger momentum and income. Northrop Grumman Corporation (NOC)offers cheaper valuation and greater modeled upside.
Snapshot
Lockheed Martin Corporation (LMT): Trading at $641.38as of Nov 3, 10:20 AM EST (Market Cap: $148.12B) || P/E 22.8x || Dividend yield 2.2% || 1-year return +31.46%
Northrop Grumman Corporation (NOC): Trading at $550.27as of Nov 3, 10:19 AM EST (Market Cap: $78.10B) || P/E 17.5x || Dividend yield 1.8% || 1-year return -4.37%
The Numbers
| Metric |
Lockheed Martin Corporation (LMT) |
Northrop Grumman Corporation (NOC) |
Take |
|---|---|---|---|
| Forward P/E, as of Dec 31, 2026 |
21.0x |
18.7x |
NOC is cheaper |
| Fair Value Upside, as of Nov 3, 2026 |
7.7% |
13.2% |
NOC has more modeled cushion |
| Analyst Target Upside, as of Nov 3, 2026 |
1.7% |
15.6% |
NOC has stronger consensus upside |
| Revenue, FY2025 |
$75.05B |
$41.95B |
LMT has greater scale |
| Revenue growth, latest available |
7.9% |
6.5% |
LMT is growing faster |
| Debt-to-equity, as of Sep 30, 2026 |
203.7% |
93.1% |
NOC has a cleaner balance sheet |
| ROE, as of Sep 30, 2026 |
80.2% |
26.1% |
LMT's leverage amplifies returns |
Screener-style valuation metrics are snapshots and can lag live prices.
Earnings Tell
LMT is executing better recently.Its latest quarter beat EPS estimates by 5.98%, and the stock rose 9.55%. Revenue reached $20.70B, as of Oct 22, 2026.
NOC also beat.EPS exceeded estimates by 9.89%, but revenue was $11.12B, as of Oct 20, 2026. Its price reaction was more modest at +5.61%.
The forward revenue path favors LMT: analysts estimate $81.39B in FY2026 revenue and $92.95B by FY2028. NOC's estimates rise from $44.08B to $50.22B over the same period.
Risk Asymmetry
LMT's bull case:scale, a 2.2% yield, stronger recent price momentum, and accelerating revenue estimates. Its latest consensus revenue revisions were positive over 30, 60, and 90 days.
LMT's bear case:a 203.7% debt-to-equity ratio and only 1.7% analyst-target upside. Much of the recovery appears already reflected in the price.
NOC's bull case:18.7x forward earnings, lower leverage, and 15.6% analyst-target upside. Its valuation leaves more room for favorable contract execution.
NOC's bear case:weaker one-year performance, more volatile historical net income, and negative one-year EPS estimate revisions.
A prior Investing.com analysis dated Aug 31, 2026 favored LMT for valuation and dividend yield. The live model now shows NOC with higher fair-value and analyst-target upside, creating a meaningful divergence. Read more
Verdict
For income and operating momentum:Lockheed Martin Corporation (LMT) looks stronger.
For valuation and balance-sheet flexibility:Northrop Grumman Corporation (NOC) looks more attractive.
Overall:LMT is the higher-quality momentum compounder after its rally. NOC offers the better value setup, but needs improved execution and sentiment to close the gap.
Historical data is limited to 10 years on Pro+ plan.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Original Article
LMT vs NOC: momentum favors Lockheed, valuation favors Northrop
