Lockheed Martin Corporation (LMT)vsPhilip Morris International Inc (PM)
LMT
Lockheed Martin Corporation
$624.20
+2.30%
INDUSTRIALS · Cap: $144.44B
PM
Philip Morris International Inc
$165.50
+0.99%
CONSUMER DEFENSIVE · Cap: $255.09B
Smart Verdict
WallStSmart Research — data-driven comparison
Lockheed Martin Corporation generates 85% more annual revenue ($75.05B vs $40.65B). PM leads profitability with a 27.9% profit margin vs 6.7%. LMT appears more attractively valued with a PEG of 1.34. PM earns a higher WallStSmart Score of 70/100 (B-).
LMT
Buy65
out of 100
Grade: C+
PM
Strong Buy70
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.5%
Fair Value
$1005.26
Current Price
$624.20
$381.06 discount
Margin of Safety
+17.9%
Fair Value
$201.54
Current Price
$165.50
$36.04 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 77 in profit
Large-cap with strong market position
Generating 2.8B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 32.9%
Keeps 28 of every $100 in revenue as profit
Generating 4.3B in free cash flow
Areas to Watch
Moderate valuation
1.6% earnings growth
6.7% margin — thin
Weak financial health signals
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : LMT
The strongest argument for LMT centers on Return on Equity, Market Cap, Free Cash Flow. PEG of 1.34 suggests the stock is reasonably priced for its growth.
Bull Case : PM
The strongest argument for PM centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 27.9% and operating margin at 32.9%.
Bear Case : LMT
The primary concerns for LMT are P/E Ratio, EPS Growth, Profit Margin. Debt-to-equity of 3.23 is elevated, increasing financial risk.
Bear Case : PM
The primary concerns for PM are PEG Ratio, Return on Equity.
Key Dynamics to Monitor
LMT profiles as a value stock while PM is a mature play — different risk/reward profiles.
PM carries more volatility with a beta of 0.40 — expect wider price swings.
LMT is growing revenue faster at 9.1% — sustainability is the question.
PM generates stronger free cash flow (4.3B), providing more financial flexibility.
Bottom Line
PM scores higher overall (70/100 vs 65/100), backed by strong 27.9% margins. LMT offers better value entry with a 37.5% 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.
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.
Visit Website →Philip Morris International Inc
CONSUMER DEFENSIVE · TOBACCO · USA
Philip Morris International Inc. (PMI) is a Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro.
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