Lockheed Martin Corp (NYSE:LMT) and RTX Corp (NYSE:RTX), aka Raytheon Technologies Corporation, are both significant players in the aerospace and defense industry in the U.S.
Both companies reported their fourth-quarter earnings on Jan. 23, before market hours.
RTX shares are trading higher after the Arlington, Virginia-based company reported better-than-expected Q4 financial results and issued FY24 EPS outlook above estimates. RTX delivered a 3.20% surprise on EPS and 0.48% surprise on revenue.
Lockheed Martin shares are also trading higher after the Bethesda, Maryland-based company also crushed consensus estimates for its Q4 financial results. Lockheed delivered an 8.82% surprise on earnings and 5.03% surprise on revenue.
Investors would be keen to know which is the better buy? Let’s take a quick look at how these companies compare.
In terms of stock performance, Raytheon stock has largely lagged Lockheed Martin stock over the past year. While, the former is down 9.35%, the latter is up 6.78%.
Order backlogs
Lockheed Martin has demonstrated steady revenue growth and strong profitability, driven by its diverse portfolio of products, including aircraft, missiles, and space systems. The company has a significant backlog of defense contracts and a history of positive earnings per share. Lockheed Martin’s backlog grew nearly $5 billion year-over-year by Q3, closing the quarter at a massive $140 billion.
On the other hand, Raytheon Technologies, formed after a merger, has also shown solid revenue growth and is focused on optimizing profitability. The company offers various aerospace and defense technologies, backed by substantial contract backlogs.
Backlog at the end of the fourth quarter was $196 billion, of which $118 billion was from commercial aerospace and $78 billion was from defense. Notable defense bookings during the quarter included: $2.8 billion for GEM-T production at Raytheon.
Top Line To Bottom
On a TTM basis, Lockheed generated a net income of $6.97 billion against revenue of $67.69 billion – that’s about 10.30%. RTX, on the other hand, generated $3.19 billion in net income against revenue of $67.09 billion on a TTM basis – 4.75%. I appears,…
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