WallStSmart

Lockheed Martin Corporation (LMT)vsRaytheon Technologies Corp (RTX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Raytheon Technologies Corp generates 18% more annual revenue ($88.60B vs $75.05B). RTX leads profitability with a 7.6% profit margin vs 6.7%. LMT appears more attractively valued with a PEG of 1.38. LMT earns a higher WallStSmart Score of 65/100 (C+).

LMT

Buy

65

out of 100

Grade: C+

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

RTX

Buy

55

out of 100

Grade: C-

Growth: 6.0Profit: 5.5Value: 4.7Quality: 7.0
Piotroski: 6/9Altman Z: 1.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LMTUndervalued (+36.6%)

Margin of Safety

+36.6%

Fair Value

$991.69

Current Price

$642.28

$349.41 discount

UndervaluedFair: $991.69Overvalued
RTXSignificantly Overvalued (-101.1%)

Margin of Safety

-101.1%

Fair Value

$99.80

Current Price

$204.56

$104.76 premium

UndervaluedFair: $99.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

RTX2 strengths · Avg: 9.0/10
Market CapQuality
$277.35B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$3.19B8/10

Generating 3.2B in free cash flow

Areas to Watch

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

RTX4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

PEG RatioValuation
2.892/10

Expensive relative to growth rate

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : RTX

The strongest argument for RTX centers on Market Cap, Free Cash Flow. Revenue growth of 12.1% demonstrates continued momentum.

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.

Bear Case : RTX

The primary concerns for RTX are Altman Z-Score, Profit Margin, PEG Ratio. A P/E of 41.5x leaves little room for execution misses.

Key Dynamics to Monitor

RTX carries more volatility with a beta of 0.41 — expect wider price swings.

RTX is growing revenue faster at 12.1% — sustainability is the question.

RTX generates stronger free cash flow (3.2B), providing more financial flexibility.

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

Bottom Line

LMT scores higher overall (65/100 vs 55/100). Both earn "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.

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Raytheon Technologies Corp

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.

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