AER vs. LMT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AER and LMT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
LMT’s market capitalization of 108.37 billion USD is significantly greater than AER’s 20.46 billion USD, highlighting its more substantial market valuation.
AER’s beta of 1.40 points to significantly higher volatility compared to LMT (beta: 0.29), suggesting AER has greater potential for both gains and losses relative to market movements.
| Symbol | AER | LMT |
|---|---|---|
| Company Name | AerCap Holdings N.V. | Lockheed Martin Corporation |
| Country | IE | US |
| Sector | Industrials | Industrials |
| Industry | Rental & Leasing Services | Aerospace & Defense |
| CEO | Aengus Kelly | James D. Taiclet Jr. |
| Price | 115.89 USD | 462.52 USD |
| Market Cap | 20.46 billion USD | 108.37 billion USD |
| Beta | 1.40 | 0.29 |
| Exchange | NYSE | NYSE |
| IPO Date | November 21, 2006 | January 3, 1977 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AER and LMT by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AER
12.55%
Rental & Leasing Services Industry
- Max
- 33.37%
- Q3
- 21.32%
- Median
- 10.48%
- Q1
- 2.04%
- Min
- -2.71%
AER’s Return on Equity of 12.55% is on par with the norm for the Rental & Leasing Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
LMT
83.41%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
LMT’s Return on Equity of 83.41% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Return on Invested Capital
AER
3.17%
Rental & Leasing Services Industry
- Max
- 19.57%
- Q3
- 13.92%
- Median
- 5.28%
- Q1
- 3.34%
- Min
- -10.86%
AER’s Return on Invested Capital of 3.17% is in the lower quartile for the Rental & Leasing Services industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
LMT
17.14%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
In the upper quartile for the Aerospace & Defense industry, LMT’s Return on Invested Capital of 17.14% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
AER
26.77%
Rental & Leasing Services Industry
- Max
- 26.77%
- Q3
- 17.31%
- Median
- 5.12%
- Q1
- -0.51%
- Min
- -19.03%
A Net Profit Margin of 26.77% places AER in the upper quartile for the Rental & Leasing Services industry, signifying strong profitability and more effective cost management than most of its peers.
LMT
7.66%
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
LMT’s Net Profit Margin of 7.66% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AER
32.92%
Rental & Leasing Services Industry
- Max
- 53.21%
- Q3
- 29.93%
- Median
- 16.64%
- Q1
- 8.88%
- Min
- -12.57%
An Operating Profit Margin of 32.92% places AER in the upper quartile for the Rental & Leasing Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
LMT
10.34%
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
LMT’s Operating Profit Margin of 10.34% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AER | LMT |
|---|---|---|
| Return on Equity (TTM) | 12.55% | 83.41% |
| Return on Assets (TTM) | 2.95% | 9.71% |
| Return on Invested Capital (TTM) | 3.17% | 17.14% |
| Net Profit Margin (TTM) | 26.77% | 7.66% |
| Operating Profit Margin (TTM) | 32.92% | 10.34% |
| Gross Profit Margin (TTM) | 38.97% | 10.23% |
Financial Strength
Current Ratio
AER
3.12
Rental & Leasing Services Industry
- Max
- 7.05
- Q3
- 3.95
- Median
- 1.87
- Q1
- 0.85
- Min
- 0.64
AER’s Current Ratio of 3.12 aligns with the median group of the Rental & Leasing Services industry, indicating that its short-term liquidity is in line with its sector peers.
LMT
1.08
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
LMT’s Current Ratio of 1.08 falls into the lower quartile for the Aerospace & Defense industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AER
2.69
Rental & Leasing Services Industry
- Max
- 3.95
- Q3
- 3.50
- Median
- 2.49
- Q1
- 0.92
- Min
- 0.00
AER’s Debt-to-Equity Ratio of 2.69 is typical for the Rental & Leasing Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
LMT
3.04
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.73
- Median
- 0.51
- Q1
- 0.09
- Min
- 0.00
With a Debt-to-Equity Ratio of 3.04, LMT operates with exceptionally high leverage compared to the Aerospace & Defense industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio
AER
5.50
Rental & Leasing Services Industry
- Max
- 6.53
- Q3
- 5.33
- Median
- 2.35
- Q1
- 1.41
- Min
- -1.09
AER’s Interest Coverage Ratio of 5.50 is in the upper quartile for the Rental & Leasing Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
LMT
7.08
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
LMT’s Interest Coverage Ratio of 7.08 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AER | LMT |
|---|---|---|
| Current Ratio (TTM) | 3.12 | 1.08 |
| Quick Ratio (TTM) | 3.06 | 0.91 |
| Debt-to-Equity Ratio (TTM) | 2.69 | 3.04 |
| Debt-to-Asset Ratio (TTM) | 0.64 | 0.36 |
| Net Debt-to-EBITDA Ratio (TTM) | 8.63 | 2.04 |
| Interest Coverage Ratio (TTM) | 5.50 | 7.08 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AER and LMT. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AER
0.66%
Rental & Leasing Services Industry
- Max
- 2.29%
- Q3
- 1.60%
- Median
- 0.72%
- Q1
- 0.00%
- Min
- 0.00%
AER’s Dividend Yield of 0.66% is consistent with its peers in the Rental & Leasing Services industry, providing a dividend return that is standard for its sector.
LMT
2.82%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.82%, LMT offers a more attractive income stream than most of its peers in the Aerospace & Defense industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
AER
6.80%
Rental & Leasing Services Industry
- Max
- 260.58%
- Q3
- 29.91%
- Median
- 17.33%
- Q1
- 6.80%
- Min
- 0.00%
AER’s Dividend Payout Ratio of 6.80% is within the typical range for the Rental & Leasing Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
LMT
55.88%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
LMT’s Dividend Payout Ratio of 55.88% is in the upper quartile for the Aerospace & Defense industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AER | LMT |
|---|---|---|
| Dividend Yield (TTM) | 0.66% | 2.82% |
| Dividend Payout Ratio (TTM) | 6.80% | 55.88% |
Valuation
Price-to-Earnings Ratio
AER
9.85
Rental & Leasing Services Industry
- Max
- 32.56
- Q3
- 29.28
- Median
- 17.35
- Q1
- 9.97
- Min
- 5.76
In the lower quartile for the Rental & Leasing Services industry, AER’s P/E Ratio of 9.85 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
LMT
19.70
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
In the lower quartile for the Aerospace & Defense industry, LMT’s P/E Ratio of 19.70 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Forward P/E to Growth Ratio
AER
1.33
Rental & Leasing Services Industry
- Max
- 2.86
- Q3
- 2.33
- Median
- 1.39
- Q1
- 0.91
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Rental & Leasing Services industry.
LMT
5.49
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
A Forward PEG Ratio of 5.49 places LMT in the upper quartile for the Aerospace & Defense industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
AER
2.56
Rental & Leasing Services Industry
- Max
- 6.35
- Q3
- 3.16
- Median
- 2.03
- Q1
- 0.60
- Min
- 0.25
AER’s P/S Ratio of 2.56 aligns with the market consensus for the Rental & Leasing Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
LMT
1.51
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
In the lower quartile for the Aerospace & Defense industry, LMT’s P/S Ratio of 1.51 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio
AER
1.22
Rental & Leasing Services Industry
- Max
- 2.76
- Q3
- 2.65
- Median
- 2.02
- Q1
- 1.37
- Min
- 0.69
AER’s P/B Ratio of 1.22 is in the lower quartile for the Rental & Leasing Services industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
LMT
16.22
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
At 16.22, LMT’s P/B Ratio is at an extreme premium to the Aerospace & Defense industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AER | LMT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 9.85 | 19.70 |
| Forward PEG Ratio (TTM) | 1.33 | 5.49 |
| Price-to-Sales Ratio (P/S, TTM) | 2.56 | 1.51 |
| Price-to-Book Ratio (P/B, TTM) | 1.22 | 16.22 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -9.80 | 21.74 |
| EV-to-EBITDA (TTM) | 12.54 | 13.98 |
| EV-to-Sales (TTM) | 8.22 | 1.77 |