Lockheed Martin vs Northrop Grumman
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The short version
- Lockheed Martin is the larger business, with $75.0B of revenue in fiscal 2025 against $42.0B for Northrop Grumman, about 1.8 times as much.
- Lockheed Martin grew revenue faster (5.6%, against 2.2%).
- Lockheed Martin turned more of its sales into free cash flow (9.2% FCF margin, against 7.9%).
- Lockheed Martin earned a higher return on the capital invested in it (27.1%, against 13.5%).
- Investors pay more for each dollar of Lockheed Martin’s earnings: a P/E of 21.5x against 17.4x for Northrop Grumman.
| Latest fiscal year | LMT · FY25 | NOC · FY25 |
|---|---|---|
| Size | ||
| Market cap | $139.9B | $78.5B |
| Revenue | $75.0B | $42.0B |
| Free cash flow | $6.9B | $3.3B |
| Net income | $5.0B | $4.2B |
| Growth | ||
| Revenue growth | 5.6% | 2.2% |
| 5-year growth | 2.8% | 2.7% |
| Share count change | −2.4% | −2.4% |
| Profitability | ||
| Gross margin | 10.2% | — |
| Operating margin | 10.3% | 10.8% |
| Net margin | 6.7% | 10.0% |
| FCF margin | 9.2% | 7.9% |
| Return on capital | 27.1% | 13.5% |
| Return on equity | 76.9% | 26.2% |
| Balance sheet | ||
| Net debt | $17.6B | $11.3B |
| Net debt / EBITDA | 1.9x | 1.9x |
| Dividends and buybacks | $6.1B | $2.9B |
| Valuation & quality | ||
| P/E | 21.5x | 17.4x |
| Piotroski F-score | 5 | 6 |
FY16
LMT $47.3B
NOC $24.7B
FY17
LMT $50.0B
NOC $26.0B
FY18
LMT $53.8B
NOC $30.1B
FY19
LMT $59.8B
NOC $33.8B
FY20
LMT $65.4B
NOC $36.8B
FY21
LMT $67.0B
NOC $35.7B
FY22
LMT $66.0B
NOC $36.6B
FY23
LMT $67.6B
NOC $39.3B
FY24
LMT $71.0B
NOC $41.0B
FY25
LMT $75.0B
NOC $42.0B
LMT
NOC
FY16
LMT 12.5%
NOC 13.3%
FY17
LMT 13.5%
NOC 12.4%
FY18
LMT 13.6%
NOC 12.6%
FY19
LMT 14.3%
NOC 11.7%
FY20
LMT 13.2%
NOC 11.1%
FY21
LMT 13.6%
NOC 15.8%
FY22
LMT 12.7%
NOC 9.8%
FY23
LMT 12.6%
NOC 6.5%
FY24
LMT 9.9%
NOC 10.7%
FY25
LMT 10.3%
NOC 10.8%
LMT
NOC
FY16
LMT $4.1B
NOC $1.9B
FY17
LMT $5.3B
NOC $1.7B
FY18
LMT $1.9B
NOC $2.6B
FY19
LMT $5.8B
NOC $3.0B
FY20
LMT $6.4B
NOC $2.9B
FY21
LMT $7.7B
NOC $2.2B
FY22
LMT $6.1B
NOC $1.5B
FY23
LMT $6.2B
NOC $2.1B
FY24
LMT $5.3B
NOC $2.6B
FY25
LMT $6.9B
NOC $3.3B
LMT
NOC
FY16
LMT 29.1%
NOC 25.5%
FY17
LMT 27.5%
NOC 20.7%
FY18
LMT 49.9%
NOC 20.3%
FY19
LMT 50.5%
NOC 16.9%
FY20
LMT 49.3%
NOC 16.9%
FY21
LMT 44.8%
NOC 20.7%
FY22
LMT 34.7%
NOC 12.6%
FY23
LMT 32.2%
NOC 8.7%
FY24
LMT 25.6%
NOC 13.8%
FY25
LMT 27.1%
NOC 13.5%
LMT
NOC
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.