WallStSmart

Leonardo DRS, Inc. Common Stock (DRS)vsLockheed Martin Corporation (LMT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lockheed Martin Corporation generates 1933% more annual revenue ($75.11B vs $3.69B). DRS leads profitability with a 7.8% profit margin vs 6.4%. LMT trades at a lower P/E of 24.9x. LMT earns a higher WallStSmart Score of 55/100 (C-).

DRS

Hold

45

out of 100

Grade: D+

Growth: 7.3Profit: 5.5Value: 4.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.49

LMT

Buy

55

out of 100

Grade: C-

Growth: 3.3Profit: 6.5Value: 4.7Quality: 4.5
Piotroski: 3/9Altman Z: 2.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for DRS.

LMTSignificantly Overvalued (-53.9%)

Margin of Safety

-53.9%

Fair Value

$340.34

Current Price

$519.10

$178.76 premium

UndervaluedFair: $340.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRS2 strengths · Avg: 9.0/10
Debt/EquityHealth
0.1010/10

Conservative balance sheet, low leverage

EPS GrowthGrowth
22.0%8/10

Earnings expanding 22.0% YoY

LMT2 strengths · Avg: 9.5/10
Return on EquityProfitability
64.0%10/10

Every $100 of equity generates 64 in profit

Market CapQuality
$118.38B9/10

Large-cap with strong market position

Areas to Watch

DRS4 concerns · Avg: 2.3/10
Profit MarginProfitability
7.8%3/10

7.8% margin — thin

P/E RatioValuation
45.4x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-96.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.492/10

Distress zone — elevated risk

LMT4 concerns · Avg: 3.5/10
Price/BookValuation
15.9x4/10

Trading at 15.9x book value

Revenue GrowthGrowth
0.3%4/10

0.3% revenue growth

Profit MarginProfitability
6.4%3/10

6.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : DRS

The strongest argument for DRS centers on Debt/Equity, EPS Growth.

Bull Case : LMT

The strongest argument for LMT centers on Return on Equity, Market Cap. PEG of 1.09 suggests the stock is reasonably priced for its growth.

Bear Case : DRS

The primary concerns for DRS are Profit Margin, P/E Ratio, Free Cash Flow. A P/E of 45.4x leaves little room for execution misses.

Bear Case : LMT

The primary concerns for LMT are Price/Book, Revenue Growth, Profit Margin. Debt-to-equity of 2.76 is elevated, increasing financial risk.

Key Dynamics to Monitor

DRS carries more volatility with a beta of 0.12 — expect wider price swings.

DRS is growing revenue faster at 5.9% — sustainability is the question.

DRS generates stronger free cash flow (-96M), providing more financial flexibility.

Monitor AEROSPACE & DEFENSE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LMT scores higher overall (55/100 vs 45/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Leonardo DRS, Inc. Common Stock

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Leonardo DRS, Inc. (ticker: DRS) is a leading provider of advanced technology solutions that enhance national defense and security across both military and commercial applications. The company specializes in electronic and sensor systems, innovative communication solutions, and comprehensive software development, predominantly catering to the U.S. Department of Defense and its allied forces. Committed to research and development, Leonardo DRS is strategically positioned to deliver state-of-the-art products that meet a wide array of operational requirements in land, air, and maritime environments, establishing itself as a pivotal player in the global defense landscape.

Lockheed Martin Corporation

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Lockheed Martin Corporation is an American aerospace, defense, information security, and technology company with worldwide interests. It is headquartered in North Bethesda, Maryland, in the Washington, D.C., area.

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