WallStSmart

Howmet Aerospace Inc (HWM)vsLockheed Martin Corporation (LMT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lockheed Martin Corporation generates 809% more annual revenue ($75.05B vs $8.25B). HWM leads profitability with a 18.3% profit margin vs 6.7%. HWM appears more attractively valued with a PEG of 0.80. HWM earns a higher WallStSmart Score of 69/100 (B-).

HWM

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 9.0Value: 4.7Quality: 5.0

LMT

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 10.0Quality: 4.5
Piotroski: 3/9Altman Z: 2.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HWMSignificantly Overvalued (-58.8%)

Margin of Safety

-58.8%

Fair Value

$145.34

Current Price

$232.94

$87.60 premium

UndervaluedFair: $145.34Overvalued
LMTUndervalued (+36.6%)

Margin of Safety

+36.6%

Fair Value

$991.69

Current Price

$642.28

$349.41 discount

UndervaluedFair: $991.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HWM5 strengths · Avg: 8.6/10
Return on EquityProfitability
30.4%10/10

Every $100 of equity generates 30 in profit

Market CapQuality
$97.38B9/10

Large-cap with strong market position

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Operating MarginProfitability
26.3%8/10

Strong operational efficiency at 26.3%

EPS GrowthGrowth
20.3%8/10

Earnings expanding 20.3% YoY

LMT4 strengths · Avg: 9.3/10
Return on EquityProfitability
76.9%10/10

Every $100 of equity generates 77 in profit

EPS GrowthGrowth
161.0%10/10

Earnings expanding 161.0% YoY

Market CapQuality
$147.25B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.76B8/10

Generating 2.8B in free cash flow

Areas to Watch

HWM2 concerns · Avg: 3.0/10
Price/BookValuation
17.5x4/10

Trading at 17.5x book value

P/E RatioValuation
65.4x2/10

Premium valuation, high expectations priced in

LMT4 concerns · Avg: 3.0/10
P/E RatioValuation
30.0x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
21.9x2/10

Trading at 21.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : HWM

The strongest argument for HWM centers on Return on Equity, Market Cap, PEG Ratio. Profitability is solid with margins at 18.3% and operating margin at 26.3%. Revenue growth of 14.6% demonstrates continued momentum.

Bull Case : LMT

The strongest argument for LMT centers on Return on Equity, EPS Growth, Market Cap. PEG of 1.38 suggests the stock is reasonably priced for its growth.

Bear Case : HWM

The primary concerns for HWM are Price/Book, P/E Ratio. A P/E of 65.4x leaves little room for execution misses.

Bear Case : LMT

The primary concerns for LMT are P/E Ratio, Profit Margin, Piotroski F-Score. Debt-to-equity of 3.23 is elevated, increasing financial risk.

Key Dynamics to Monitor

HWM profiles as a mature stock while LMT is a value play — different risk/reward profiles.

HWM carries more volatility with a beta of 1.19 — expect wider price swings.

HWM is growing revenue faster at 14.6% — sustainability is the question.

LMT generates stronger free cash flow (2.8B), providing more financial flexibility.

Bottom Line

HWM scores higher overall (69/100 vs 65/100), backed by strong 18.3% margins and 14.6% revenue growth. LMT offers better value entry with a 36.6% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Howmet Aerospace Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Howmet Aerospace Inc. is an American aerospace company based in Pittsburgh, Pennsylvania. The company manufactures components for jet engines, fasteners and titanium structures for aerospace applications, and forged aluminum wheels for heavy trucks.

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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