HWM vs. LMT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at HWM and LMT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | HWM | LMT |
|---|---|---|
| Company Name | Howmet Aerospace Inc. | Lockheed Martin Corporation |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Aerospace & Defense | Aerospace & Defense |
| Market Capitalization | 84.42 billion USD | 104.61 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | November 1, 2016 | January 2, 1962 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of HWM 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.
Historical Performance at a Glance
| Symbol | HWM | LMT |
|---|---|---|
| 5-Day Price Return | 2.30% | -6.78% |
| 13-Week Price Return | 16.60% | 6.06% |
| 26-Week Price Return | 33.49% | -4.08% |
| 52-Week Price Return | 88.58% | -18.07% |
| Month-to-Date Return | 1.84% | -8.09% |
| Year-to-Date Return | 91.77% | -6.96% |
| 10-Day Avg. Volume | 2.45M | 1.34M |
| 3-Month Avg. Volume | 2.32M | 1.56M |
| 3-Month Volatility | 24.54% | 17.33% |
| Beta | 1.31 | 0.26 |
Profitability
Return on Equity (TTM)
HWM
29.70%
Aerospace & Defense Industry
- Max
- 37.11%
- Q3
- 20.14%
- Median
- 11.72%
- Q1
- 6.30%
- Min
- -6.24%
In the upper quartile for the Aerospace & Defense industry, HWM’s Return on Equity of 29.70% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
LMT
68.48%
Aerospace & Defense Industry
- Max
- 37.11%
- Q3
- 20.14%
- Median
- 11.72%
- Q1
- 6.30%
- Min
- -6.24%
LMT’s Return on Equity of 68.48% 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.
Net Profit Margin (TTM)
HWM
18.18%
Aerospace & Defense Industry
- Max
- 13.66%
- Q3
- 8.61%
- Median
- 6.59%
- Q1
- 4.92%
- Min
- 1.01%
HWM’s Net Profit Margin of 18.18% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
LMT
5.73%
Aerospace & Defense Industry
- Max
- 13.66%
- Q3
- 8.61%
- Median
- 6.59%
- Q1
- 4.92%
- Min
- 1.01%
LMT’s Net Profit Margin of 5.73% 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 (TTM)
HWM
25.10%
Aerospace & Defense Industry
- Max
- 22.35%
- Q3
- 12.83%
- Median
- 9.29%
- Q1
- 6.38%
- Min
- -2.15%
HWM’s Operating Profit Margin of 25.10% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
LMT
8.31%
Aerospace & Defense Industry
- Max
- 22.35%
- Q3
- 12.83%
- Median
- 9.29%
- Q1
- 6.38%
- Min
- -2.15%
LMT’s Operating Profit Margin of 8.31% 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 | HWM | LMT |
|---|---|---|
| Return on Equity (TTM) | 29.70% | 68.48% |
| Return on Assets (TTM) | 13.33% | 7.26% |
| Net Profit Margin (TTM) | 18.18% | 5.73% |
| Operating Profit Margin (TTM) | 25.10% | 8.31% |
| Gross Profit Margin (TTM) | 33.43% | 8.25% |
Financial Strength
Current Ratio (MRQ)
HWM
2.35
Aerospace & Defense Industry
- Max
- 3.35
- Q3
- 2.03
- Median
- 1.24
- Q1
- 1.04
- Min
- 0.77
HWM’s Current Ratio of 2.35 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
LMT
1.13
Aerospace & Defense Industry
- Max
- 3.35
- Q3
- 2.03
- Median
- 1.24
- Q1
- 1.04
- Min
- 0.77
LMT’s Current Ratio of 1.13 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
HWM
0.62
Aerospace & Defense Industry
- Max
- 1.72
- Q3
- 0.96
- Median
- 0.63
- Q1
- 0.37
- Min
- 0.03
HWM’s Debt-to-Equity Ratio of 0.62 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
LMT
3.59
Aerospace & Defense Industry
- Max
- 1.72
- Q3
- 0.96
- Median
- 0.63
- Q1
- 0.37
- Min
- 0.03
With a Debt-to-Equity Ratio of 3.59, 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 (TTM)
HWM
7.92
Aerospace & Defense Industry
- Max
- 36.57
- Q3
- 19.08
- Median
- 7.25
- Q1
- 2.65
- Min
- -7.63
HWM’s Interest Coverage Ratio of 7.92 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.
LMT
7.49
Aerospace & Defense Industry
- Max
- 36.57
- Q3
- 19.08
- Median
- 7.25
- Q1
- 2.65
- Min
- -7.63
LMT’s Interest Coverage Ratio of 7.49 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 | HWM | LMT |
|---|---|---|
| Current Ratio (MRQ) | 2.35 | 1.13 |
| Quick Ratio (MRQ) | 0.96 | 0.97 |
| Debt-to-Equity Ratio (MRQ) | 0.62 | 3.59 |
| Interest Coverage Ratio (TTM) | 7.92 | 7.49 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
HWM
0.19%
Aerospace & Defense Industry
- Max
- 2.72%
- Q3
- 1.45%
- Median
- 0.48%
- Q1
- 0.08%
- Min
- 0.00%
HWM’s Dividend Yield of 0.19% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.
LMT
2.99%
Aerospace & Defense Industry
- Max
- 2.72%
- Q3
- 1.45%
- Median
- 0.48%
- Q1
- 0.08%
- Min
- 0.00%
LMT’s Dividend Yield of 2.99% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
HWM
11.31%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 50.43%
- Median
- 17.11%
- Q1
- 0.46%
- Min
- 0.00%
HWM’s Dividend Payout Ratio of 11.31% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
LMT
74.05%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 50.43%
- Median
- 17.11%
- Q1
- 0.46%
- Min
- 0.00%
LMT’s Dividend Payout Ratio of 74.05% 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 | HWM | LMT |
|---|---|---|
| Dividend Yield (TTM) | 0.19% | 2.99% |
| Dividend Payout Ratio (TTM) | 11.31% | 74.05% |
Valuation
Price-to-Earnings Ratio (TTM)
HWM
58.16
Aerospace & Defense Industry
- Max
- 67.20
- Q3
- 55.74
- Median
- 33.28
- Q1
- 27.49
- Min
- 15.02
A P/E Ratio of 58.16 places HWM in the upper quartile for the Aerospace & Defense industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
LMT
24.77
Aerospace & Defense Industry
- Max
- 67.20
- Q3
- 55.74
- Median
- 33.28
- Q1
- 27.49
- Min
- 15.02
In the lower quartile for the Aerospace & Defense industry, LMT’s P/E Ratio of 24.77 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
HWM
10.57
Aerospace & Defense Industry
- Max
- 9.06
- Q3
- 4.87
- Median
- 2.47
- Q1
- 1.61
- Min
- 0.33
With a P/S Ratio of 10.57, HWM trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
LMT
1.42
Aerospace & Defense Industry
- Max
- 9.06
- Q3
- 4.87
- Median
- 2.47
- Q1
- 1.61
- Min
- 0.33
In the lower quartile for the Aerospace & Defense industry, LMT’s P/S Ratio of 1.42 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 (MRQ)
HWM
15.38
Aerospace & Defense Industry
- Max
- 14.90
- Q3
- 8.93
- Median
- 4.70
- Q1
- 3.03
- Min
- 0.83
At 15.38, HWM’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.
LMT
18.58
Aerospace & Defense Industry
- Max
- 14.90
- Q3
- 8.93
- Median
- 4.70
- Q1
- 3.03
- Min
- 0.83
At 18.58, 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 | HWM | LMT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 58.16 | 24.77 |
| Price-to-Sales Ratio (TTM) | 10.57 | 1.42 |
| Price-to-Book Ratio (MRQ) | 15.38 | 18.58 |
| Price-to-Free Cash Flow Ratio (TTM) | 65.94 | 21.93 |