LMT vs. PCAR: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at LMT and PCAR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | LMT | PCAR |
|---|---|---|
| Company Name | Lockheed Martin Corporation | PACCAR Inc |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Aerospace & Defense | Machinery |
| Market Capitalization | 104.13 billion USD | 51.55 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | January 2, 1962 | March 17, 1980 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of LMT and PCAR 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 | LMT | PCAR |
|---|---|---|
| 5-Day Price Return | 1.98% | -1.51% |
| 13-Week Price Return | -5.72% | 1.21% |
| 26-Week Price Return | 2.59% | -6.73% |
| 52-Week Price Return | -20.13% | 2.30% |
| Month-to-Date Return | 5.94% | -0.59% |
| Year-to-Date Return | -8.22% | -5.61% |
| 10-Day Avg. Volume | 1.47M | 1.97M |
| 3-Month Avg. Volume | 1.66M | 2.86M |
| 3-Month Volatility | 30.65% | 23.43% |
| Beta | 0.26 | 0.96 |
Profitability
Return on Equity (TTM)
LMT
65.82%
Aerospace & Defense Industry
- Max
- 43.89%
- Q3
- 22.42%
- Median
- 12.50%
- Q1
- 5.21%
- Min
- -6.24%
LMT’s Return on Equity of 65.82% 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.
PCAR
16.81%
Machinery Industry
- Max
- 34.68%
- Q3
- 19.06%
- Median
- 13.13%
- Q1
- 8.53%
- Min
- -4.87%
PCAR’s Return on Equity of 16.81% is on par with the norm for the Machinery industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
LMT
5.85%
Aerospace & Defense Industry
- Max
- 14.54%
- Q3
- 8.08%
- Median
- 6.17%
- Q1
- 2.49%
- Min
- -1.63%
LMT’s Net Profit Margin of 5.85% 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.
PCAR
9.88%
Machinery Industry
- Max
- 19.74%
- Q3
- 11.24%
- Median
- 8.13%
- Q1
- 5.38%
- Min
- -1.11%
PCAR’s Net Profit Margin of 9.88% is aligned with the median group of its peers in the Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
LMT
8.29%
Aerospace & Defense Industry
- Max
- 16.63%
- Q3
- 10.38%
- Median
- 8.29%
- Q1
- 6.21%
- Min
- 0.95%
LMT’s Operating Profit Margin of 8.29% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.
PCAR
14.86%
Machinery Industry
- Max
- 26.63%
- Q3
- 16.15%
- Median
- 11.27%
- Q1
- 7.72%
- Min
- -4.91%
PCAR’s Operating Profit Margin of 14.86% is around the midpoint for the Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | LMT | PCAR |
|---|---|---|
| Return on Equity (TTM) | 65.82% | 16.81% |
| Return on Assets (TTM) | 7.42% | 7.08% |
| Net Profit Margin (TTM) | 5.85% | 9.88% |
| Operating Profit Margin (TTM) | 8.29% | 14.86% |
| Gross Profit Margin (TTM) | 8.25% | 21.19% |
Financial Strength
Current Ratio (MRQ)
LMT
0.99
Aerospace & Defense Industry
- Max
- 3.09
- Q3
- 1.98
- Median
- 1.23
- Q1
- 1.03
- Min
- 0.02
LMT’s Current Ratio of 0.99 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.
PCAR
1.64
Machinery Industry
- Max
- 3.83
- Q3
- 2.32
- Median
- 1.72
- Q1
- 1.28
- Min
- 0.78
PCAR’s Current Ratio of 1.64 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
LMT
4.06
Aerospace & Defense Industry
- Max
- 1.70
- Q3
- 1.04
- Median
- 0.68
- Q1
- 0.41
- Min
- 0.00
With a Debt-to-Equity Ratio of 4.06, 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.
PCAR
0.84
Machinery Industry
- Max
- 1.49
- Q3
- 0.75
- Median
- 0.44
- Q1
- 0.26
- Min
- 0.00
PCAR’s leverage is in the upper quartile of the Machinery industry, with a Debt-to-Equity Ratio of 0.84. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
LMT
7.49
Aerospace & Defense Industry
- Max
- 36.57
- Q3
- 19.90
- Median
- 7.04
- Q1
- 2.40
- 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.
PCAR
27.70
Machinery Industry
- Max
- 67.55
- Q3
- 33.79
- Median
- 13.87
- Q1
- 7.97
- Min
- -1.43
PCAR’s Interest Coverage Ratio of 27.70 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | LMT | PCAR |
|---|---|---|
| Current Ratio (MRQ) | 0.99 | 1.64 |
| Quick Ratio (MRQ) | 0.83 | 1.24 |
| Debt-to-Equity Ratio (MRQ) | 4.06 | 0.84 |
| Interest Coverage Ratio (TTM) | 7.49 | 27.70 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
LMT
2.99%
Aerospace & Defense Industry
- Max
- 2.03%
- Q3
- 1.22%
- Median
- 0.43%
- Q1
- 0.00%
- 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.
PCAR
4.31%
Machinery Industry
- Max
- 5.32%
- Q3
- 2.84%
- Median
- 1.87%
- Q1
- 1.09%
- Min
- 0.00%
With a Dividend Yield of 4.31%, PCAR offers a more attractive income stream than most of its peers in the Machinery industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
LMT
73.60%
Aerospace & Defense Industry
- Max
- 83.87%
- Q3
- 49.90%
- Median
- 16.48%
- Q1
- 0.00%
- Min
- 0.00%
LMT’s Dividend Payout Ratio of 73.60% 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.
PCAR
72.73%
Machinery Industry
- Max
- 202.17%
- Q3
- 98.65%
- Median
- 55.54%
- Q1
- 29.03%
- Min
- 0.00%
PCAR’s Dividend Payout Ratio of 72.73% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | LMT | PCAR |
|---|---|---|
| Dividend Yield (TTM) | 2.99% | 4.31% |
| Dividend Payout Ratio (TTM) | 73.60% | 72.73% |
Valuation
Price-to-Earnings Ratio (TTM)
LMT
24.64
Aerospace & Defense Industry
- Max
- 65.97
- Q3
- 54.11
- Median
- 34.53
- Q1
- 23.66
- Min
- 0.00
LMT’s P/E Ratio of 24.64 is within the middle range for the Aerospace & Defense industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
PCAR
16.89
Machinery Industry
- Max
- 53.66
- Q3
- 31.29
- Median
- 22.00
- Q1
- 16.18
- Min
- 7.00
PCAR’s P/E Ratio of 16.89 is within the middle range for the Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
LMT
1.44
Aerospace & Defense Industry
- Max
- 8.07
- Q3
- 4.49
- Median
- 2.42
- Q1
- 1.39
- Min
- 0.00
LMT’s P/S Ratio of 1.44 aligns with the market consensus for the Aerospace & Defense industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
PCAR
1.67
Machinery Industry
- Max
- 5.04
- Q3
- 2.72
- Median
- 1.67
- Q1
- 1.04
- Min
- 0.24
PCAR’s P/S Ratio of 1.67 aligns with the market consensus for the Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
LMT
20.34
Aerospace & Defense Industry
- Max
- 13.67
- Q3
- 7.92
- Median
- 4.65
- Q1
- 2.68
- Min
- 0.82
At 20.34, 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.
PCAR
2.63
Machinery Industry
- Max
- 7.23
- Q3
- 3.90
- Median
- 2.52
- Q1
- 1.47
- Min
- 0.49
PCAR’s P/B Ratio of 2.63 is within the conventional range for the Machinery industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | LMT | PCAR |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 24.64 | 16.89 |
| Price-to-Sales Ratio (TTM) | 1.44 | 1.67 |
| Price-to-Book Ratio (MRQ) | 20.34 | 2.63 |
| Price-to-Free Cash Flow Ratio (TTM) | 20.78 | 18.02 |