Triumph Group (TGI) versus Lockheed Martin (LMT) Critical Analysis
Triumph Group (NYSE: TGI) and Lockheed Martin (NYSE:LMT) are both aerospace companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.
This is a summary of recent recommendations and price targets for Triumph Group and Lockheed Martin, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Triumph Group presently has a consensus price target of $33.11, indicating a potential upside of 23.55%. Lockheed Martin has a consensus price target of $319.62, indicating a potential upside of 2.45%. Given Triumph Group’s higher possible upside, equities analysts plainly believe Triumph Group is more favorable than Lockheed Martin.
This table compares Triumph Group and Lockheed Martin’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Triumph Group has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, Lockheed Martin has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Institutional & Insider Ownership
99.8% of Triumph Group shares are held by institutional investors. Comparatively, 78.9% of Lockheed Martin shares are held by institutional investors. 2.8% of Triumph Group shares are held by company insiders. Comparatively, 0.4% of Lockheed Martin shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Triumph Group and Lockheed Martin’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Triumph Group||$3.53 billion||0.38||-$42.95 million||($2.13)||-12.58|
|Lockheed Martin||$47.25 billion||1.89||$5.30 billion||$12.33||25.30|
Lockheed Martin has higher revenue and earnings than Triumph Group. Triumph Group is trading at a lower price-to-earnings ratio than Lockheed Martin, indicating that it is currently the more affordable of the two stocks.
Triumph Group pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Lockheed Martin pays an annual dividend of $8.00 per share and has a dividend yield of 2.6%. Triumph Group pays out -7.5% of its earnings in the form of a dividend. Lockheed Martin pays out 64.9% 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. Triumph Group has increased its dividend for 14 consecutive years.
Lockheed Martin beats Triumph Group on 11 of the 17 factors compared between the two stocks.
Triumph Group Company Profile
Triumph Group, Inc. designs, engineers, manufactures, repairs, overhauls and distributes a portfolio of aircraft components, accessories, subassemblies and systems. The Company offers a range of products and services to the aerospace industry through three segments: Triumph Aerostructures Group, whose companies are engaged in the design, manufacture, assembly and integration of metallic and composite aerostructures and structural components for the aerospace original equipment manufacturer (OEM) market; Triumph Aerospace Systems Group, whose companies design, engineer and manufacture a range of build-to-print components, assemblies and systems also for the OEM market, and Triumph Aftermarket Services Group, whose companies serve aircraft fleets, such as commercial airlines, the United States military and cargo carriers, through the maintenance, repair and overhaul (MRO) of aircraft components and accessories manufactured by third parties.
Lockheed Martin Company Profile
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.
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