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LMT vs NOC
Which Stock Would AI Choose? Lockheed Martin (LMT) vs. Northrop Grumman (NOC) Stock Comparison
Key Takeaways
- Lockheed Martin (LMT) has outperformed Northrop Grumman (NOC) year-to-date with approximately 20% gains compared to NOC's more modest advances, driven by robust defense backlogs.
- Both stocks experienced pullbacks in recent market activity, with LMT down about 5% over the past month amid broader sector rotation.
- NOC reported higher Q1 2026 revenue amid escalating global conflicts, beating estimates and reaffirming guidance.
- LMT boasts a larger market cap of around $134 billion versus NOC's $96 billion, with a higher dividend yield of 2.3% compared to 1.4%.
- Low betas (LMT 0.24, NOC 0.05) indicate defensive stability for both in volatile markets.
- Tickeron's AI models lean toward LMT for superior trend consistency and catalysts like missile programs.
Introduction
Lockheed Martin (LMT) and Northrop Grumman (NOC), two leading aerospace and defense giants, operate in a sector buoyed by sustained global security demands and government contracts. This stock comparison analyzes their recent performance, business drivers, and market positioning, aiding investors seeking defensive plays with growth potential. Traders focused on relative performance in the industrials sector, particularly amid geopolitical tensions, will find insights into momentum, valuations, and sentiment shifts relevant for portfolio decisions.
LMT Overview and Recent Performance
Lockheed Martin Corporation (LMT) is a premier defense contractor specializing in aircraft (e.g., F-35 Lightning II), missiles, rotary systems, and space technologies. In recent market activity, LMT shares have pulled back approximately 5% over the past month following strong year-to-date gains of over 20%, reflecting profit-taking amid sector rotation. Sentiment remains positive due to a record backlog exceeding $160 billion, fueled by missile defense demand and F-35 production ramps. Key influences include upcoming Q1 2026 earnings expectations of modest revenue growth and heightened focus on hypersonics, alongside a venture fund expansion to $1 billion for innovation. Low beta (0.24, a measure of volatility relative to the market) underscores its stability.
NOC Overview and Recent Performance
Northrop Grumman Corporation (NOC) excels in advanced aircraft (e.g., B-21 Raider), space systems, missile products, and cyber solutions. Shares have seen modest declines in recent weeks, trading around $657 after a Q1 2026 earnings release showing revenue beats amid rising global conflicts. Year-to-date performance trails LMT but benefits from a $90 billion backlog and reaffirmed full-year guidance. Performance drivers include Aeronautics segment strength and space investments, with low beta (0.05) signaling resilience. Recent sentiment reflects steady contract wins in contested logistics, though stock faces pressure from broader market dynamics.
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Head-to-Head Comparison
Both LMT and NOC thrive on long-term U.S. Department of Defense contracts, but LMT's broader portfolio (F-35 dominance, missiles) contrasts NOC's emphasis on stealth bombers and space. Growth drivers for LMT include hypersonic advancements; NOC leverages B-21 and cyber. Recent momentum favors LMT's YTD edge, though NOC's fresh earnings beat signals stability. Risk factors are similar—budget dependencies, execution delays—with LMT's higher P/E ratio (27x, price-to-earnings) versus NOC's 23x reflecting growth premium. Sector exposure is nearly identical (aerospace/defense), but LMT's larger scale offers dividend appeal (2.3% yield). Market sentiment tilts toward LMT for backlog depth amid tensions.
Tickeron AI Verdict
Tickeron's AI models currently favor LMT over NOC, citing superior year-to-date trend consistency, record backlog stability, and missile catalysts positioning it better for sustained defense spending. NOC's earnings strength provides a close contest, but LMT's relative momentum suggests higher probability of outperformance in the near term.
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. Disclaimers and Limitations
Lockheed Martin Corporation (LMT) and Northrop Grumman (NOC) are two of the largest companies in the aerospace & Defense industry. Their primary source of revenue is government contracts to develop, manufacture, and deploy military assets such as aircraft, missiles, weapons, and information technology systems including cybersecurity and intelligence systems. LMT has been the world’s largest defense contractor by revenue, getting most of its contracts from the Pentagon as well as a substantial amount of foreign contracts from US allies. NOC’s business is very similar to LMT, but it is about 40% smaller. The companies have similar profit margins. Investors have not been overly impressed with LMT’s performance the past two years, but Lockheed is trying to convince investors that a large classified project, which has taken up company resources so far this year, will definitely turn out well for them in the future.
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 undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
LMT’s FA Score shows that 2 FA rating(s) are green whileNOC’s FA Score has 0 green FA rating(s).
- LMT’s FA Score: 2 green, 3 red.
- NOC’s FA Score: 0 green, 5 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.
LMT’s TA Score shows that 6 TA indicator(s) are bullish while NOC’s TA Score has 5 bullish TA indicator(s).
- LMT’s TA Score: 6 bullish, 3 bearish.
- NOC’s TA Score: 5 bullish, 4 bearish.
Price Growth
LMT (@Aerospace & Defense) experienced а +5.71% price change this week, while NOC (@Aerospace & Defense) price change was +1.35% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was -1.12%. For the same industry, the average monthly price growth was +2.09%, and the average quarterly price growth was +17.37%.
Reported Earning Dates
LMT is expected to report earnings on Jul 28, 2026.
NOC is expected to report earnings on Jul 23, 2026.
Industries' Descriptions
@Aerospace & Defense (-1.12% 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.
| LMT | NOC | LMT / NOC | |
| Capitalization | 127B | 78.5B | 162% |
| EBITDA | 8.47B | 7.7B | 110% |
| Gain YTD | 14.785 | -2.364 | -625% |
| P/E Ratio | 26.57 | 17.32 | 153% |
| Revenue | 75.1B | 42.4B | 177% |
| Total Cash | 1.89B | 2.09B | 91% |
| Total Debt | 20.7B | 16.3B | 127% |
LMT | NOC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 9 | 15 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 62 Fair valued | 53 Fair valued | |
PROFIT vs RISK RATING 1..100 | 44 | 51 | |
SMR RATING 1..100 | 17 | 34 | |
PRICE GROWTH RATING 1..100 | 54 | 60 | |
P/E GROWTH RATING 1..100 | 25 | 61 | |
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.
NOC's Valuation (53) in the Aerospace And Defense industry is in the same range as LMT (62). This means that NOC’s stock grew similarly to LMT’s over the last 12 months.
LMT's Profit vs Risk Rating (44) in the Aerospace And Defense industry is in the same range as NOC (51). This means that LMT’s stock grew similarly to NOC’s over the last 12 months.
LMT's SMR Rating (17) in the Aerospace And Defense industry is in the same range as NOC (34). This means that LMT’s stock grew similarly to NOC’s over the last 12 months.
LMT's Price Growth Rating (54) in the Aerospace And Defense industry is in the same range as NOC (60). This means that LMT’s stock grew similarly to NOC’s over the last 12 months.
LMT's P/E Growth Rating (25) in the Aerospace And Defense industry is somewhat better than the same rating for NOC (61). This means that LMT’s stock grew somewhat faster than NOC’s over the last 12 months.
| LMT | NOC | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 68% | 2 days ago 66% |
| Stochastic ODDS (%) | 2 days ago 42% | 2 days ago 56% |
| Momentum ODDS (%) | 2 days ago 49% | 2 days ago 59% |
| MACD ODDS (%) | 2 days ago 53% | 2 days ago 53% |
| TrendWeek ODDS (%) | 2 days ago 52% | 2 days ago 57% |
| TrendMonth ODDS (%) | 2 days ago 53% | 2 days ago 54% |
| Advances ODDS (%) | 8 days ago 56% | 15 days ago 60% |
| Declines ODDS (%) | 10 days ago 50% | 5 days ago 47% |
| BollingerBands ODDS (%) | 2 days ago 41% | 2 days ago 69% |
| Aroon ODDS (%) | 2 days ago 56% | 2 days ago 33% |
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LMT and
Correlation & Price change
A.I.dvisor indicates that over the last year, LMT has been loosely correlated with LHX. These tickers have moved in lockstep 50% of the time. This A.I.-generated data suggests there is some statistical probability that if LMT jumps, then LHX could also see price increases.
NOC and
Correlation & Price change
A.I.dvisor indicates that over the last year, NOC has been loosely correlated with LHX. These tickers have moved in lockstep 65% of the time. This A.I.-generated data suggests there is some statistical probability that if NOC jumps, then LHX could also see price increases.