WallStSmart

Lockheed Martin Corporation (LMT)vsTransdigm Group Incorporated (TDG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lockheed Martin Corporation generates 690% more annual revenue ($75.11B vs $9.50B). TDG leads profitability with a 21.9% profit margin vs 6.4%. LMT appears more attractively valued with a PEG of 1.12. TDG earns a higher WallStSmart Score of 57/100 (C).

LMT

Buy

55

out of 100

Grade: C-

Growth: 3.3Profit: 6.5Value: 4.7Quality: 4.5
Piotroski: 3/9Altman Z: 2.09

TDG

Buy

57

out of 100

Grade: C

Growth: 7.3Profit: 7.5Value: 2.7Quality: 7.0
Piotroski: 5/9Altman Z: 0.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LMTSignificantly Overvalued (-57.5%)

Margin of Safety

-57.5%

Fair Value

$340.34

Current Price

$519.10

$178.76 premium

UndervaluedFair: $340.34Overvalued
TDGSignificantly Overvalued (-63.3%)

Margin of Safety

-63.3%

Fair Value

$812.02

Current Price

$1238.74

$426.72 premium

UndervaluedFair: $812.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LMT2 strengths · Avg: 9.5/10
Return on EquityProfitability
64.0%10/10

Every $100 of equity generates 64 in profit

Market CapQuality
$123.57B9/10

Large-cap with strong market position

TDG5 strengths · Avg: 9.2/10
Operating MarginProfitability
46.7%10/10

Strong operational efficiency at 46.7%

Debt/EquityHealth
-3.4010/10

Conservative balance sheet, low leverage

Market CapQuality
$71.45B9/10

Large-cap with strong market position

Profit MarginProfitability
21.9%9/10

Keeps 22 of every $100 in revenue as profit

Revenue GrowthGrowth
18.3%8/10

18.3% revenue growth

Areas to Watch

LMT4 concerns · Avg: 3.8/10
P/E RatioValuation
26.0x4/10

Moderate valuation

Price/BookValuation
15.9x4/10

Trading at 15.9x book value

Revenue GrowthGrowth
0.3%4/10

0.3% revenue growth

Profit MarginProfitability
6.4%3/10

6.4% margin — thin

TDG4 concerns · Avg: 2.8/10
P/E RatioValuation
39.8x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
3.052/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.602/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : LMT

The strongest argument for LMT centers on Return on Equity, Market Cap. PEG of 1.12 suggests the stock is reasonably priced for its growth.

Bull Case : TDG

The strongest argument for TDG centers on Operating Margin, Debt/Equity, Market Cap. Profitability is solid with margins at 21.9% and operating margin at 46.7%. Revenue growth of 18.3% demonstrates continued momentum.

Bear Case : LMT

The primary concerns for LMT are P/E Ratio, Price/Book, Revenue Growth. Debt-to-equity of 2.76 is elevated, increasing financial risk.

Bear Case : TDG

The primary concerns for TDG are P/E Ratio, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

LMT profiles as a value stock while TDG is a growth play — different risk/reward profiles.

TDG carries more volatility with a beta of 0.90 — expect wider price swings.

TDG is growing revenue faster at 18.3% — sustainability is the question.

TDG generates stronger free cash flow (64M), providing more financial flexibility.

Bottom Line

TDG scores higher overall (57/100 vs 55/100), backed by strong 21.9% margins and 18.3% revenue growth. 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.

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Transdigm Group Incorporated

INDUSTRIALS · AEROSPACE & DEFENSE · USA

TransDigm Group is a publicly traded aerospace manufacturing company headquartered in Cleveland, Ohio. TransDigm develops and manufactures engineered aerospace components.

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