LMT vs. NOC: Lockheed Martin vs. Northrop Grumman Stock Comparison

November 11, 2026

How do Lockheed Martin (LMT) and Northrop Grumman (NOC) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Lockheed Martin (LMT) and Northrop Grumman (NOC) are both classified in the Aerospace & Defense sub-industry within the broader Aerospace & Defense industry, placing them in the closest GICS peer bucket.

Company profile comparison for Lockheed Martin (LMT) and Northrop Grumman (NOC)
Profile Item	LMT	NOC
Name	Lockheed Martin Corporation	Northrop Grumman Corporation
Country/Region	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Aerospace & Defense	Aerospace & Defense
GICS Sub-Industry	Aerospace & Defense	Aerospace & Defense
Market Capitalization	131.00 billion USD	74.59 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1962	December 31, 1981
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

LMT

NOC

GSPC

Lockheed Martin (LMT) vs. Northrop Grumman (NOC), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Lockheed Martin (LMT) and Northrop Grumman (NOC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Lockheed Martin (LMT) and Northrop Grumman (NOC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Lockheed Martin (LMT) and Northrop Grumman (NOC)
Metric	LMT	NOC
Total Return (1Y)	31.17%	-3.34%
Total Return (3Y, Annualized)	12.79%	7.23%
Total Return (5Y, Annualized)	14.65%	9.98%

Risk Profile

Drawdown History

LMT

NOC

GSPC

Lockheed Martin (LMT) vs. Northrop Grumman (NOC), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Lockheed Martin (LMT) and Northrop Grumman (NOC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Northrop Grumman (NOC) reports a negative beta of -0.12, suggesting inverse market sensitivity over the measurement window. That is uncommon for ordinary equities and can reflect commodity-linked or hedge-like exposure, but it can also come from statistical noise. Lockheed Martin (LMT) has a non-negative beta of 0.10.

Risk profile metrics for Lockheed Martin (LMT) and Northrop Grumman (NOC)
Metric	LMT	NOC
Volatility (1Y, Annualized)	31.09%	28.86%
Beta (5Y)	0.10	-0.12
Max Drawdown (5Y)	-31.79%	-37.80%
Avg. Volume (3M)	1.29M	902.47K

Risk-Adjusted Performance

Risk-Return Positioning

LMT and NOC are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Lockheed Martin (LMT) and Northrop Grumman (NOC)
Metric	LMT	NOC
Sharpe Ratio (1Y)	0.86	-0.26
Sortino Ratio (1Y)	1.38	-0.37

Profitability

ROE (TTM)

Both companies show strong equity returns, but Lockheed Martin (LMT) at 80.19% is the standout with ROE above its industry range; Northrop Grumman (NOC) at 26.07% also sits in the top quartile.

LMT

Capital Goods industry group

80.19%

LMT: 80.19%
Max: 40.55%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

NOC

Capital Goods industry group

26.07%

Max: 40.55%
NOC: 26.07%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

Lockheed Martin (LMT) vs. Northrop Grumman (NOC): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Both Lockheed Martin (LMT) at 8.23% and Northrop Grumman (NOC) at 10.37% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

LMT

Capital Goods industry group

8.23%

Max: 27.47%
Q3: 12.10%
LMT: 8.23%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

NOC

Capital Goods industry group

10.37%

Max: 27.47%
Q3: 12.10%
NOC: 10.37%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Lockheed Martin (LMT) vs. Northrop Grumman (NOC): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Lockheed Martin (LMT) at 11.41% and Northrop Grumman (NOC) at 12.91% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

LMT

Capital Goods industry group

11.41%

Max: 36.60%
Q3: 18.33%
LMT: 11.41%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

NOC

Capital Goods industry group

12.91%

Max: 36.60%
Q3: 18.33%
NOC: 12.91%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

Lockheed Martin (LMT) vs. Northrop Grumman (NOC): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Lockheed Martin (LMT) and Northrop Grumman (NOC)
Metric	LMT	NOC
ROE (TTM)	80.19%	26.07%
ROA (TTM)	8.58%	7.11%
Net Margin (TTM)	8.23%	10.37%
Operating Margin (TTM)	11.41%	12.91%
Gross Margin (TTM)	11.73%	20.03%

Growth

Revenue Growth

Both Lockheed Martin (LMT) at 5.64% and Northrop Grumman (NOC) at 2.24% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Lockheed Martin (LMT) vs. Northrop Grumman (NOC): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Lockheed Martin (LMT) at -3.68% and Northrop Grumman (NOC) at 2.61% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Lockheed Martin (LMT) vs. Northrop Grumman (NOC): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Lockheed Martin (LMT) and Northrop Grumman (NOC)
Metric	LMT	NOC
Revenue Growth (YoY)	5.64%	2.24%
Revenue Growth (3Y CAGR)	4.38%	4.65%
EPS Growth (YoY)	-3.68%	2.61%
EPS Growth (3Y CAGR)	-0.26%	-2.60%

Financial Strength

Current Ratio (MRQ)

Both Lockheed Martin (LMT) at 1.26 and Northrop Grumman (NOC) at 1.23 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

LMT

Capital Goods industry group

1.26

Max: 5.22
Q3: 2.95
Median: 2.08
Q1: 1.43
LMT: 1.26
Min: 0.36

NOC

Capital Goods industry group

1.23

Max: 5.22
Q3: 2.95
Median: 2.08
Q1: 1.43
NOC: 1.23
Min: 0.36

Lockheed Martin (LMT) vs. Northrop Grumman (NOC): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Northrop Grumman (NOC) at 0.93 carries an industry-typical debt-to-equity mix, while Lockheed Martin (LMT) at 2.04 uses more debt funding than most peers.

LMT

Capital Goods industry group

2.04

Max: 2.33
LMT: 2.04
Q3: 1.12
Median: 0.60
Q1: 0.29
Min: 0.00

NOC

Capital Goods industry group

0.93

Max: 2.33
Q3: 1.12
NOC: 0.93
Median: 0.60
Q1: 0.29
Min: 0.00

Lockheed Martin (LMT) vs. Northrop Grumman (NOC): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Lockheed Martin (LMT) and Northrop Grumman (NOC)
Metric	LMT	NOC
Current Ratio (MRQ)	1.26	1.23
Debt / Equity (MRQ)	2.04	0.93
Net Debt / EBITDA	1.47	1.87

Dividends

Dividend Yield (TTM)

Both Lockheed Martin (LMT) at 2.40% and Northrop Grumman (NOC) at 1.82% offer top-quartile dividend income relative to share price within their industries.

LMT

Capital Goods industry group

2.40%

Max: 2.66%
LMT: 2.40%
Q3: 1.14%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

NOC

Capital Goods industry group

1.82%

Max: 2.66%
NOC: 1.82%
Q3: 1.14%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

Lockheed Martin (LMT) vs. Northrop Grumman (NOC): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Both Lockheed Martin (LMT) at 49.01% and Northrop Grumman (NOC) at 30.18% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

LMT

Capital Goods industry group

49.01%

Max: 67.39%
LMT: 49.01%
Q3: 28.02%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

NOC

Capital Goods industry group

30.18%

Max: 67.39%
NOC: 30.18%
Q3: 28.02%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

Lockheed Martin (LMT) vs. Northrop Grumman (NOC): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Lockheed Martin (LMT) and Northrop Grumman (NOC)
Metric	LMT	NOC
Dividend Yield (TTM)	2.40%	1.82%
Dividend Payout Ratio (TTM)	49.01%	30.18%

Valuation

P/E Ratio (TTM)

Northrop Grumman (NOC) at 16.57 sits in the cheaper P/E ratio quartile, while Lockheed Martin (LMT) at 20.14 is closer to its industry’s usual earnings multiple — a discount for NOC, though growth and earnings durability still matter.

LMT

Capital Goods industry group

20.14

Max: 59.38
Q3: 35.92
Median: 25.41
LMT: 20.14
Q1: 19.47
Min: 3.03

NOC

Capital Goods industry group

16.57

Max: 59.38
Q3: 35.92
Median: 25.41
Q1: 19.47
NOC: 16.57
Min: 3.03

Lockheed Martin (LMT) vs. Northrop Grumman (NOC): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Lockheed Martin (LMT) at 1.66 and Northrop Grumman (NOC) at 1.71 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

LMT

Capital Goods industry group

1.66

Max: 7.54
Q3: 3.76
Median: 2.15
LMT: 1.66
Q1: 1.03
Min: 0.03

NOC

Capital Goods industry group

1.71

Max: 7.54
Q3: 3.76
Median: 2.15
NOC: 1.71
Q1: 1.03
Min: 0.03

Lockheed Martin (LMT) vs. Northrop Grumman (NOC): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Northrop Grumman (NOC) at 3.99 sits near its industry’s typical P/B ratio, while Lockheed Martin (LMT) at 12.96 prices above its benchmark range — LMT looks rich relative to book.

LMT

Capital Goods industry group

12.96

LMT: 12.96
Max: 9.66
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08

NOC

Capital Goods industry group

3.99

Max: 9.66
Q3: 5.00
NOC: 3.99
Median: 3.12
Q1: 1.81
Min: -1.08

Lockheed Martin (LMT) vs. Northrop Grumman (NOC): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Lockheed Martin (LMT) and Northrop Grumman (NOC)
Metric	LMT	NOC
P/E Ratio (TTM)	20.14	16.57
P/S Ratio (TTM)	1.66	1.71
P/B Ratio (MRQ)	12.96	3.99
Free Cash Flow Yield (TTM)	4.31%	4.21%