LMT vs. WSO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at LMT and WSO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | LMT | WSO |
|---|---|---|
| Company Name | Lockheed Martin Corporation | Watsco, Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Aerospace & Defense | Trading Companies & Distributors |
| Market Capitalization | 120.01 billion USD | 16.29 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | January 2, 1962 | June 7, 1984 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of LMT and WSO 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 | WSO |
|---|---|---|
| 5-Day Price Return | 2.94% | -3.59% |
| 13-Week Price Return | 11.01% | -16.19% |
| 26-Week Price Return | 13.03% | -19.51% |
| 52-Week Price Return | -15.11% | -18.55% |
| Month-to-Date Return | 2.97% | -1.95% |
| Year-to-Date Return | 5.78% | -16.35% |
| 10-Day Avg. Volume | 1.10M | 0.51M |
| 3-Month Avg. Volume | 1.63M | 0.39M |
| 3-Month Volatility | 25.98% | 28.65% |
| Beta | 0.24 | 1.02 |
Profitability
Return on Equity (TTM)
LMT
65.82%
Aerospace & Defense Industry
- Max
- 37.11%
- Q3
- 20.14%
- Median
- 11.72%
- Q1
- 6.30%
- 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.
WSO
19.73%
Trading Companies & Distributors Industry
- Max
- 32.99%
- Q3
- 19.66%
- Median
- 13.72%
- Q1
- 9.74%
- Min
- -0.34%
In the upper quartile for the Trading Companies & Distributors industry, WSO’s Return on Equity of 19.73% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
LMT
5.85%
Aerospace & Defense Industry
- Max
- 13.66%
- Q3
- 8.61%
- Median
- 6.59%
- Q1
- 4.92%
- Min
- 1.01%
LMT’s Net Profit Margin of 5.85% 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.
WSO
7.08%
Trading Companies & Distributors Industry
- Max
- 16.11%
- Q3
- 9.48%
- Median
- 5.89%
- Q1
- 3.68%
- Min
- -1.09%
WSO’s Net Profit Margin of 7.08% is aligned with the median group of its peers in the Trading Companies & Distributors 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
- 22.35%
- Q3
- 12.83%
- Median
- 9.29%
- Q1
- 6.38%
- Min
- -2.15%
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.
WSO
10.26%
Trading Companies & Distributors Industry
- Max
- 26.26%
- Q3
- 14.59%
- Median
- 7.05%
- Q1
- 4.94%
- Min
- -8.06%
WSO’s Operating Profit Margin of 10.26% is around the midpoint for the Trading Companies & Distributors industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | LMT | WSO |
|---|---|---|
| Return on Equity (TTM) | 65.82% | 19.73% |
| Return on Assets (TTM) | 7.42% | 11.69% |
| Net Profit Margin (TTM) | 5.85% | 7.08% |
| Operating Profit Margin (TTM) | 8.29% | 10.26% |
| Gross Profit Margin (TTM) | 8.25% | 27.54% |
Financial Strength
Current Ratio (MRQ)
LMT
0.99
Aerospace & Defense Industry
- Max
- 3.35
- Q3
- 2.03
- Median
- 1.24
- Q1
- 1.04
- Min
- 0.77
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.
WSO
3.08
Trading Companies & Distributors Industry
- Max
- 3.32
- Q3
- 2.27
- Median
- 1.60
- Q1
- 1.41
- Min
- 0.26
WSO’s Current Ratio of 3.08 is in the upper quartile for the Trading Companies & Distributors industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
LMT
4.06
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 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.
WSO
0.01
Trading Companies & Distributors Industry
- Max
- 1.93
- Q3
- 1.24
- Median
- 0.79
- Q1
- 0.61
- Min
- 0.01
Falling into the lower quartile for the Trading Companies & Distributors industry, WSO’s Debt-to-Equity Ratio of 0.01 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
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.
WSO
140.00
Trading Companies & Distributors Industry
- Max
- 15.13
- Q3
- 7.93
- Median
- 5.67
- Q1
- 2.04
- Min
- -1.67
With an Interest Coverage Ratio of 140.00, WSO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Trading Companies & Distributors industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | LMT | WSO |
|---|---|---|
| Current Ratio (MRQ) | 0.99 | 3.08 |
| Quick Ratio (MRQ) | 0.83 | 1.26 |
| Debt-to-Equity Ratio (MRQ) | 4.06 | 0.01 |
| Interest Coverage Ratio (TTM) | 7.49 | 140.00 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
LMT
2.58%
Aerospace & Defense Industry
- Max
- 2.72%
- Q3
- 1.45%
- Median
- 0.48%
- Q1
- 0.08%
- Min
- 0.00%
With a Dividend Yield of 2.58%, LMT offers a more attractive income stream than most of its peers in the Aerospace & Defense industry, signaling a strong commitment to shareholder returns.
WSO
2.78%
Trading Companies & Distributors Industry
- Max
- 5.25%
- Q3
- 2.95%
- Median
- 2.06%
- Q1
- 1.11%
- Min
- 0.00%
WSO’s Dividend Yield of 2.78% is consistent with its peers in the Trading Companies & Distributors industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
LMT
73.60%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 50.43%
- Median
- 17.11%
- Q1
- 0.46%
- 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.
WSO
84.37%
Trading Companies & Distributors Industry
- Max
- 136.12%
- Q3
- 71.34%
- Median
- 47.49%
- Q1
- 22.56%
- Min
- 0.00%
WSO’s Dividend Payout Ratio of 84.37% is in the upper quartile for the Trading Companies & Distributors 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 | LMT | WSO |
|---|---|---|
| Dividend Yield (TTM) | 2.58% | 2.78% |
| Dividend Payout Ratio (TTM) | 73.60% | 84.37% |
Valuation
Price-to-Earnings Ratio (TTM)
LMT
28.51
Aerospace & Defense Industry
- Max
- 67.20
- Q3
- 55.74
- Median
- 33.28
- Q1
- 27.49
- Min
- 15.02
LMT’s P/E Ratio of 28.51 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.
WSO
30.40
Trading Companies & Distributors Industry
- Max
- 42.69
- Q3
- 25.21
- Median
- 16.99
- Q1
- 13.13
- Min
- 5.35
A P/E Ratio of 30.40 places WSO in the upper quartile for the Trading Companies & Distributors industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
LMT
1.67
Aerospace & Defense Industry
- Max
- 9.06
- Q3
- 4.87
- Median
- 2.47
- Q1
- 1.61
- Min
- 0.33
LMT’s P/S Ratio of 1.67 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.
WSO
2.15
Trading Companies & Distributors Industry
- Max
- 4.90
- Q3
- 2.71
- Median
- 1.06
- Q1
- 0.70
- Min
- 0.30
WSO’s P/S Ratio of 2.15 aligns with the market consensus for the Trading Companies & Distributors 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
- 14.90
- Q3
- 8.93
- Median
- 4.70
- Q1
- 3.03
- Min
- 0.83
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.
WSO
6.47
Trading Companies & Distributors Industry
- Max
- 7.55
- Q3
- 4.63
- Median
- 2.09
- Q1
- 1.30
- Min
- 0.31
WSO’s P/B Ratio of 6.47 is in the upper tier for the Trading Companies & Distributors industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | LMT | WSO |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 28.51 | 30.40 |
| Price-to-Sales Ratio (TTM) | 1.67 | 2.15 |
| Price-to-Book Ratio (MRQ) | 20.34 | 6.47 |
| Price-to-Free Cash Flow Ratio (TTM) | 24.05 | 21.75 |