Lockheed Martin Corporation (LMT)vsSouthwest Airlines Company (LUV)
LMT
Lockheed Martin Corporation
$615.84
-1.83%
INDUSTRIALS · Cap: $141.93B
LUV
Southwest Airlines Company
$37.36
-5.49%
INDUSTRIALS · Cap: $18.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Lockheed Martin Corporation generates 167% more annual revenue ($75.05B vs $28.06B). LMT leads profitability with a 6.7% profit margin vs 1.6%. LUV appears more attractively valued with a PEG of 0.19. LMT earns a higher WallStSmart Score of 65/100 (C+).
LMT
Buy65
out of 100
Grade: C+
LUV
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.5%
Fair Value
$1005.73
Current Price
$615.84
$389.89 discount
Margin of Safety
-39.1%
Fair Value
$36.97
Current Price
$37.36
$0.39 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 77 in profit
Earnings expanding 161.0% YoY
Large-cap with strong market position
Generating 2.8B in free cash flow
Growing faster than its price suggests
Earnings expanding 50.8% YoY
Reasonable price relative to book value
Areas to Watch
Moderate valuation
6.7% margin — thin
Weak financial health signals
Trading at 21.0x book value
Grey zone — moderate risk
ROE of 4.8% — below average capital efficiency
1.6% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : LMT
The strongest argument for LMT centers on Return on Equity, EPS Growth, Market Cap. PEG of 1.31 suggests the stock is reasonably priced for its growth.
Bull Case : LUV
The strongest argument for LUV centers on PEG Ratio, EPS Growth, Price/Book. PEG of 0.19 suggests the stock is reasonably priced for its growth.
Bear Case : LMT
The primary concerns for LMT are P/E Ratio, Profit Margin, Piotroski F-Score. Debt-to-equity of 3.23 is elevated, increasing financial risk.
Bear Case : LUV
The primary concerns for LUV are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 47.3x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
LUV carries more volatility with a beta of 1.09 — expect wider price swings.
LMT is growing revenue faster at 9.1% — sustainability is the question.
LMT generates stronger free cash flow (2.8B), providing more financial flexibility.
Monitor AEROSPACE & DEFENSE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LMT scores higher overall (65/100 vs 63/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Lockheed Martin Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Lockheed Martin Corporation is an American aerospace, defense, information security, and technology company with worldwide interests. It is headquartered in North Bethesda, Maryland, in the Washington, D.C., area.
Visit Website →Southwest Airlines Company
INDUSTRIALS · AIRLINES · USA
Southwest Airlines Co., typically referred to as Southwest, is one of the major airlines of the United States and the world's largest low-cost carrier airline. It is headquartered in Dallas, Texas.
Visit Website →Compare with Other AEROSPACE & DEFENSE Stocks
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