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LHX vs LMT
Which Stock Would AI Choose? L3Harris Technologies (LHX) vs. Lockheed Martin (LMT) Stock Comparison
Key Takeaways
- LMT has outperformed recently, rising roughly 6–7% over the past three months while LHX declined by a mid-teens percentage over the same window.
- Both companies carry record backlogs, but LMT is far larger and more diversified, while LHX skews toward mission systems, communications, sensors, and space.
- LMT trades at a lower forward earnings and price-to-sales multiple, and pays a notable dividend; LHX is trading near its 52-week low.
- Missile-defense demand (PAC-3, THAAD) links the two names directly, with LHX supplying propulsion to LMT programs.
- Analyst consensus currently skews more constructive on LMT, while LHX carries a more neutral, execution-focused outlook.
Introduction
Defense contractors have moved to the center of investor attention as governments restock depleted munitions and expand missile-defense capacity. This stock comparison examines two U.S. aerospace and defense leaders with overlapping, yet distinct, business models: L3Harris Technologies (LHX), a specialist in mission-critical communications, sensors, electronic warfare, and space; and Lockheed Martin (LMT), the world's largest defense prime contractor and maker of the F-35. For traders weighing relative performance, momentum, valuation, and market positioning, the contrast between a large-cap platform leader and a technology-layer specialist offers a useful lens on how capital is being allocated across the sector.
LHX Overview and Recent Performance
L3Harris Technologies (LHX) provides secure communications, electronic warfare, sensing, space systems, mission systems, and missile-related technologies to government and commercial customers. Recent market activity has been challenging: the stock has fallen by a mid-teens percentage over roughly three months and sits near the lower end of its 52-week range, underperforming several peers. Sentiment has been pressured by execution concerns tied to fixed-price missile and space contracts, as well as a broader rotation within the defense complex.
Fundamentally, the business has strengthened. Second-quarter orders reached $7.3 billion, lifting backlog to a record $42 billion and producing a book-to-bill ratio above 1.0x. L3Harris also secured a roughly $4.7 billion undefinitized contract to supply propulsion systems for PAC-3 MSE interceptors and continues to invest heavily—about $2 billion—in missile production capacity. Management's "LHX NeXt" cost initiative is now in its execution phase, with the company emphasizing operating discipline and margin expansion rather than further restructuring.
LMT Overview and Recent Performance
Lockheed Martin (LMT) is a diversified prime contractor spanning aeronautics (the F-35, F-16, C-130J), missiles and fire control (PAC-3, THAAD, PrSM), rotary and mission systems (Sikorsky), and space. Its recent performance has diverged from L3Harris: LMT shares have advanced modestly over the past three months, even as the stock trades well below its 52-week high following a broader defense de-rating tied to easing geopolitical tensions.
The operating picture is strong. Second-quarter sales rose about 11%, led by a 19% increase in Missiles and Fire Control, and the company lifted its full-year revenue and earnings guidance. Backlog reached a record $230.4 billion, up roughly 38% year over year, supported by a seven-year, up-to-$35 billion THAAD agreement. Lockheed trades near 17 times forward earnings, pays a dividend yielding roughly 2.6%, and projects 2026 free cash flow above $7 billion—factors that have attracted recent analyst upgrades.
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Head-to-Head Comparison
The core trade-off is scale versus specialization. LMT offers broad exposure to large platforms, munitions, and missile defense, with a $230 billion backlog providing multiyear revenue visibility. LHX is more concentrated in the "technology layer" of modern warfare—radios, electronic warfare, sensing, and space—where demand is growing but contract mix and execution carry meaningful risk.
On valuation, LMT screens cheaper on forward earnings and price-to-sales and returns capital via a sizable dividend. LHX trades at a richer price-to-sales multiple, yet sits near its 52-week low, suggesting the market is discounting near-term execution uncertainty rather than rewarding its growing backlog and missile-capacity investments.
Growth drivers also differ. LMT benefits most directly from weapons restocking and international F-35 demand, while LHX leans on space sensing, missile warning and tracking, and counter-drone systems. Risk profiles diverge as well: both face fixed-price program and budget-cycle risks, but LHX carries a heavier near-term margin-squeeze risk from space and missile contracts, whereas LMT must prove backlog converts into margins and free cash flow.
Tickeron AI Verdict
Based on observable trend consistency, relative momentum, valuation, and catalysts, Tickeron's AI would likely favor LMT in the current environment. The stock's positive recent momentum, record backlog, lower relative valuation, and improving earnings trajectory present a more stable and constructive setup. By contrast, LHX shows compelling longer-term positioning but weaker near-term trend consistency and elevated execution uncertainty, making it a less favorable candidate under current conditions. This is a probabilistic assessment of relative positioning rather than a definitive forecast, and market dynamics can shift as new data emerges.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
LHX and LMT are competitors in the defense contractors space, particularly regarding the intelligence systems, optics, and computer technologies that LHX specializes in. LMT has greater involvement in the manufacturing of aircraft, submarines, and weapons systems. LHX has planted itself in its niche in the defense sector where semiconductors and nanometers are more important than megatonnage. LHX is smaller than LMT by about 50%, with an enterprise value of $52B compared to LMT’s $109B. It’s a little shocking to see a dividend payout ratio over 50% from LHX, but it was most likely under pressure pay by investors who were seeing such generosity from LMT. Lockheed is simply big and strong enough to do that, as it secures more military contracts by value than any other company in the world. Both companies have significant staying power and growth potential. They also make and sell commercial products and systems related to aviation, navigation, weapons, and communications.
LHX's RSI Oscillator ascending out of oversold territory
The RSI Indicator for LHX moved out of oversold territory on October 08, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 27 similar instances when the indicator left oversold territory. In 18 of the 27 cases the stock moved higher. This puts the odds of a move higher at 67%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 35 of 56 cases where LHX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 62%.
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on LHX as a result. In 46 of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 55%.
The Moving Average Convergence Divergence (MACD) for LHX just turned positive on October 01, 2026. Looking at past instances where LHX's MACD turned positive, the stock continued to rise in 28 of 51 cases over the following month. The odds of a continued upward trend are 55%.
Following a +2.46% 3-day Advance, the price is estimated to grow further. Considering data from situations where LHX advanced for three days, in 157 of 304 cases, the price rose further within the following month. The odds of a continued upward trend are 52%.
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LHX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 58%.
LHX broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for LHX entered a downward trend on October 15, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 38 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.226) is normal, around the industry mean (6.305). P/E Ratio (24.010) is within average values for comparable stocks, (58.116). Projected Growth (PEG Ratio) (1.183) is also within normal values, averaging (2.564). Dividend Yield (0.021) settles around the average of (0.009) among similar stocks. P/S Ratio (2.055) is also within normal values, averaging (18.330).
The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating steady price growth. LHX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 72 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 73 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 79 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LHX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock worse than average.
LMT's RSI Indicator climbs out of oversold territory
The RSI Indicator for LMT moved out of oversold territory on October 08, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 37 similar instances when the indicator left oversold territory. In 22 of the 37 cases the stock moved higher. This puts the odds of a move higher at 59%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on LMT as a result. In 43 of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 55%.
The Moving Average Convergence Divergence (MACD) for LMT just turned positive on October 09, 2026. Looking at past instances where LMT's MACD turned positive, the stock continued to rise in 20 of 42 cases over the following month. The odds of a continued upward trend are 48%.
Following a +5.68% 3-day Advance, the price is estimated to grow further. Considering data from situations where LMT advanced for three days, in 194 of 339 cases, the price rose further within the following month. The odds of a continued upward trend are 57%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 50-day moving average for LMT moved below the 200-day moving average on September 21, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LMT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 53%.
LMT broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for LMT entered a downward trend on October 15, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 15 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 38 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 54 (best 1 - 100 worst), indicating steady price growth. LMT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 60 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (13.643) is normal, around the industry mean (6.305). P/E Ratio (19.104) is within average values for comparable stocks, (58.116). Projected Growth (PEG Ratio) (0.978) is also within normal values, averaging (2.564). Dividend Yield (0.027) settles around the average of (0.009) among similar stocks. P/S Ratio (1.616) is also within normal values, averaging (18.330).
The Tickeron PE Growth Rating for this company is 77 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
LHX | LMT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 21 | 19 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 38 Fair valued | 60 Fair valued | |
PROFIT vs RISK RATING 1..100 | 79 | 38 | |
SMR RATING 1..100 | 72 | 15 | |
PRICE GROWTH RATING 1..100 | 63 | 54 | |
P/E GROWTH RATING 1..100 | 73 | 77 | |
SEASONALITY SCORE 1..100 | n/a | n/a |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
LHX's Valuation (38) in the null industry is in the same range as LMT (60) in the Aerospace And Defense industry. This means that LHX’s stock grew similarly to LMT’s over the last 12 months.
LMT's Profit vs Risk Rating (38) in the Aerospace And Defense industry is somewhat better than the same rating for LHX (79) in the null industry. This means that LMT’s stock grew somewhat faster than LHX’s over the last 12 months.
LMT's SMR Rating (15) in the Aerospace And Defense industry is somewhat better than the same rating for LHX (72) in the null industry. This means that LMT’s stock grew somewhat faster than LHX’s over the last 12 months.
LMT's Price Growth Rating (54) in the Aerospace And Defense industry is in the same range as LHX (63) in the null industry. This means that LMT’s stock grew similarly to LHX’s over the last 12 months.
LHX's P/E Growth Rating (73) in the null industry is in the same range as LMT (77) in the Aerospace And Defense industry. This means that LHX’s stock grew similarly to LMT’s over the last 12 months.
| LHX | LMT | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 67% | 1 day ago 59% |
| Stochastic ODDS (%) | 1 day ago 63% | 1 day ago 40% |
| Momentum ODDS (%) | 1 day ago 55% | 1 day ago 55% |
| MACD ODDS (%) | 1 day ago 55% | 1 day ago 48% |
| TrendWeek ODDS (%) | 1 day ago 55% | 1 day ago 54% |
| TrendMonth ODDS (%) | 1 day ago 64% | 1 day ago 57% |
| Advances ODDS (%) | 1 day ago 52% | 1 day ago 57% |
| Declines ODDS (%) | 21 days ago 58% | 14 days ago 53% |
| BollingerBands ODDS (%) | 1 day ago 43% | 1 day ago 41% |
| Aroon ODDS (%) | 1 day ago 59% | 1 day ago 50% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
LHX’s FA Score shows that 0 FA rating(s) are green while LMT’s FA Score has 1 green FA rating(s).
- LHX’s FA Score: 0 green, 5 red.
- LMT’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
LHX’s TA Score shows that 5 TA indicator(s) are bullish while LMT’s TA Score has 4 bullish TA indicator(s).
- LHX’s TA Score: 5 bullish, 3 bearish.
- LMT’s TA Score: 4 bullish, 5 bearish.
Price Growth
LHX (@Aerospace & Defense) experienced а +1.51% price change this week, while LMT (@Aerospace & Defense) price change was +4.87% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was -5.75%. For the same industry, the average monthly price growth was -12.43%, and the average quarterly price growth was -20.67%.
Reported Earning Dates
LHX is expected to report earnings on Oct 29, 2026.
LMT is expected to report earnings on Oct 22, 2026.
Industries' Descriptions
@Aerospace & Defense (-5.75% weekly)Aerospace & Defense is one of largest industries in the U.S., mainly comprising the following areas: commercial airliners, military aircraft, missiles, space, and general aviation. Focused heavily on research & development, it is also one of the fastest growing industries. Military aircraft has the largest market share in the industry’s sales, followed by space systems, civil aircraft, and missiles. Aerospace exports, directly and indirectly, support more jobs than the export of any other commodity, according to a study by the U.S. Department of Commerce. Boeing Company, Lockheed Martin Corporation and General Electric Company are some of the most prominent players in this space.
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LHX and
Correlation & Price change
A.I.dvisor indicates that over the last year, LHX has been loosely correlated with NOC. These tickers have moved in lockstep 65% of the time. This A.I.-generated data suggests there is some statistical probability that if LHX jumps, then NOC could also see price increases.