Financial Analysis: Lockheed Martin Corporation (LMT) and B/E Aerospace (BEAV)
Lockheed Martin Corporation (NYSE: LMT) and B/E Aerospace (NASDAQ:BEAV) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
This table compares Lockheed Martin Corporation and B/E Aerospace’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lockheed Martin Corporation||10.37%||221.92%||7.97%|
Earnings & Valuation
This table compares Lockheed Martin Corporation and B/E Aerospace’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lockheed Martin Corporation||$49.05 billion||1.81||$6.23 billion||$17.12||18.02|
Lockheed Martin Corporation has higher revenue and earnings than B/E Aerospace. Lockheed Martin Corporation is trading at a lower price-to-earnings ratio than B/E Aerospace, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Lockheed Martin Corporation has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, B/E Aerospace has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.
This is a summary of current ratings and target prices for Lockheed Martin Corporation and B/E Aerospace, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lockheed Martin Corporation||0||6||7||0||2.54|
Lockheed Martin Corporation currently has a consensus price target of $301.58, indicating a potential downside of 2.25%. B/E Aerospace has a consensus price target of $59.57, indicating a potential downside of 7.60%. Given Lockheed Martin Corporation’s stronger consensus rating and higher probable upside, research analysts plainly believe Lockheed Martin Corporation is more favorable than B/E Aerospace.
Insider and Institutional Ownership
78.9% of Lockheed Martin Corporation shares are held by institutional investors. Comparatively, 92.0% of B/E Aerospace shares are held by institutional investors. 0.4% of Lockheed Martin Corporation shares are held by insiders. Comparatively, 0.5% of B/E Aerospace shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Lockheed Martin Corporation pays an annual dividend of $7.28 per share and has a dividend yield of 2.4%. B/E Aerospace pays an annual dividend of $0.84 per share and has a dividend yield of 1.3%. Lockheed Martin Corporation pays out 42.5% of its earnings in the form of a dividend. B/E Aerospace pays out 27.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lockheed Martin Corporation has increased its dividend for 14 consecutive years. Lockheed Martin Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Lockheed Martin Corporation beats B/E Aerospace on 10 of the 14 factors compared between the two stocks.
About Lockheed Martin Corporation
Lockheed Martin Corporation is a security and aerospace company. The Company operates through four segments. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Missiles and Fire Control segment provides air and missile defense systems; fire control systems; manned and unmanned ground vehicles, and energy management solutions. Rotary and Mission Systems segment provides design, manufacture, service and support for a range of military and civil helicopters; mission systems and sensors for rotary and fixed-wing aircraft; simulation and training services, and unmanned systems and technologies, among others. Space Systems segment is engaged in the research and development, design, engineering and production of satellites, strategic and defensive missile systems and space transportation systems.
About B/E Aerospace
B/E Aerospace, Inc. is a manufacturer of cabin interior products for commercial aircraft and business jets. The Company sells its products and provides services directly to airlines and aerospace manufacturer. It operates through two segments. The Company manufactures aircraft seats, offering a selection of first class, business class, tourist class and regional aircraft seats. It manufactures and sells seats, which include the seat frame, cushions, armrests, tray table and a range of optional features, such as adjustable lumbar supports, electrical actuation systems, footrests, reading lights, head/neck supports and other comfort amenities. The business jet segment’s products include a range of business jet seating and sofa products, including electric fully berthing lie-flat seats, air valves and oxygen delivery systems as well as sidewalls, bulkheads, credenzas, closets, galley structures, lavatories, wastewater systems, de-icing systems, cabin management systems and tables.
Receive News & Ratings for Lockheed Martin Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lockheed Martin Corporation and related companies with Analyst Ratings Network's FREE daily email newsletter.