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BA vs. LMT: Which Aerospace-Defense Giant Offers Better Value Today?
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Key Takeaways
Boeing posted 10% higher Q1 2026 deliveries, lifting commercial airplane revenues 13% year over year.
Lockheed Martin secured $7B in PAC-3 contracts and long-lead materials for future F-35 lots.
BA outperformed LMT over three months, while Boeing's 2026 EPS estimate jumped 98.59%.
The Boeing Company (BA - Free Report) and Lockheed Martin (LMT - Free Report) are two of the largest aerospace and defense manufacturers in the United States, and both play a critical role in supplying military equipment, aircraft, and advanced technology systems to the U.S. government and allied nations. Their businesses are heavily tied to defense spending, long-term government contracts and innovation in aerospace engineering.
Boeing is widely recognized for its commercial aircraft operations, though it also maintains a significant defense and space business that benefits from both airline demand and government contracts. In contrast, Lockheed Martin is heavily concentrated on defense and government programs, focusing on fighter jets, missile systems, and space technologies. Its long-term defense contracts provide greater earnings stability and visibility, supported by steady global military spending.
Investor interest in aircraft companies with defense exposure has reached all-time highs due to rising global defense spending, geopolitical tensions and consistent improvements in commercial aviation. Let's compare Boeing and Lockheed Martin fundamentals to determine which stock appears better positioned at present.
Factors in Favor of BA Stock
Boeing remains one of the largest aircraft manufacturers in the United States in terms of revenues, orders and deliveries, particularly in the commercial aerospace industry. Thanks to the steadily growing demand trend in commercial aerospace, BA, being a prominent jet manufacturer, has been witnessing solid delivery and order activities lately. Keeping up with this trend, the Boeing Commercial Airplanes segment registered 10% year-over-year growth in its delivery count for the first quarter of 2026, which resulted in a 13% surge in this unit’s revenues.
Thanks to its diverse defense product portfolio and established footprint in the space technology industry, Boeing witnesses a solid inflow of contracts. Impressively, during the first quarter of 2026, the Boeing Defense, Space & Security unit booked $9 billion in orders, including contracts to continue E-7 Wedgetail development and additional international demand for KC-46 aircraft, which resulted in a solid backlog amount of $86 billion for this segment as of March 31, 2026.
Factors in Favor of LMT Stock
Lockheed Martin continues to convert demand for key franchise programs into sizable awards, supporting revenue visibility over a multiyear horizon. In the first quarter of 2026, Lockheed Martin’s Missiles and Fire Control segment was awarded $7 billion in PAC-3 contracts, including a fully funded $4.8 billion undefinitized contract. The company also secured long-lead materials for F-35 Lots 20 and 21.
The F-35 remains a central franchise program for Lockheed’s Aeronautics segment, combining production, upgrades and long-duration sustainment work. The program accounted for approximately 27% of consolidated sales in the first quarter of 2026, while Aeronautics revenues benefited partly from higher F-35 sustainment activity despite timing-related pressures in other aircraft programs. During the quarter, the company also secured a contract for long-lead items for future production lots, highlighting continued partner commitment and helping reduce near-term production planning risk.
How Do Zacks Estimates Compare for BA & LMT?
The Zacks Consensus Estimate for Boeing’s 2026 earnings per share (EPS) indicates an increase of 98.59% year over year.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LMT’s 2026 EPS indicates an increase of 29.24% year over year.
Image Source: Zacks Investment Research
Valuation for BA & LMT
Boeing shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.69X compared with Lockheed Martin’s P/S F12M of 1.53X.
Liquidity of BA & LMT
Boeing and Lockheed Martin’s current ratio is 1.18 and 1.14, respectively. A current ratio greater than one indicates that the company has enough short-term assets to liquidate to cover all short-term liabilities, if necessary.
BA & LMT’s Price Performance
In the past three months, shares of Boeing and Lockheed Martin have lost 4.5% and 16.9%, respectively, compared with the industry’s decline of 13.3%.
BA or LMT: Which Is a Better Choice Now?
Boeing continues to strengthen its position in commercial aerospace through growing aircraft demand, increased deliveries and rising revenues. The company also benefits from strong defense and space operations, supported by major contract wins and a large backlog of government and international projects. Lockheed Martin continues to secure strong defense contracts that support long-term revenue growth and business stability. Its F-35 fighter jet program remains a key driver of sales, supported by ongoing production, upgrades and global defense demand.
Our choice at the moment is Boeing, given its better price performance, strong earnings growth and better liquidity than Lockheed Martin. Both BA and LMT carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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BA vs. LMT: Which Aerospace-Defense Giant Offers Better Value Today?
Key Takeaways
The Boeing Company (BA - Free Report) and Lockheed Martin (LMT - Free Report) are two of the largest aerospace and defense manufacturers in the United States, and both play a critical role in supplying military equipment, aircraft, and advanced technology systems to the U.S. government and allied nations. Their businesses are heavily tied to defense spending, long-term government contracts and innovation in aerospace engineering.
Boeing is widely recognized for its commercial aircraft operations, though it also maintains a significant defense and space business that benefits from both airline demand and government contracts. In contrast, Lockheed Martin is heavily concentrated on defense and government programs, focusing on fighter jets, missile systems, and space technologies. Its long-term defense contracts provide greater earnings stability and visibility, supported by steady global military spending.
Investor interest in aircraft companies with defense exposure has reached all-time highs due to rising global defense spending, geopolitical tensions and consistent improvements in commercial aviation. Let's compare Boeing and Lockheed Martin fundamentals to determine which stock appears better positioned at present.
Factors in Favor of BA Stock
Boeing remains one of the largest aircraft manufacturers in the United States in terms of revenues, orders and deliveries, particularly in the commercial aerospace industry. Thanks to the steadily growing demand trend in commercial aerospace, BA, being a prominent jet manufacturer, has been witnessing solid delivery and order activities lately. Keeping up with this trend, the Boeing Commercial Airplanes segment registered 10% year-over-year growth in its delivery count for the first quarter of 2026, which resulted in a 13% surge in this unit’s revenues.
Thanks to its diverse defense product portfolio and established footprint in the space technology industry, Boeing witnesses a solid inflow of contracts. Impressively, during the first quarter of 2026, the Boeing Defense, Space & Security unit booked $9 billion in orders, including contracts to continue E-7 Wedgetail development and additional international demand for KC-46 aircraft, which resulted in a solid backlog amount of $86 billion for this segment as of March 31, 2026.
Factors in Favor of LMT Stock
Lockheed Martin continues to convert demand for key franchise programs into sizable awards, supporting revenue visibility over a multiyear horizon. In the first quarter of 2026, Lockheed Martin’s Missiles and Fire Control segment was awarded $7 billion in PAC-3 contracts, including a fully funded $4.8 billion undefinitized contract. The company also secured long-lead materials for F-35 Lots 20 and 21.
The F-35 remains a central franchise program for Lockheed’s Aeronautics segment, combining production, upgrades and long-duration sustainment work. The program accounted for approximately 27% of consolidated sales in the first quarter of 2026, while Aeronautics revenues benefited partly from higher F-35 sustainment activity despite timing-related pressures in other aircraft programs. During the quarter, the company also secured a contract for long-lead items for future production lots, highlighting continued partner commitment and helping reduce near-term production planning risk.
How Do Zacks Estimates Compare for BA & LMT?
The Zacks Consensus Estimate for Boeing’s 2026 earnings per share (EPS) indicates an increase of 98.59% year over year.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LMT’s 2026 EPS indicates an increase of 29.24% year over year.
Image Source: Zacks Investment Research
Valuation for BA & LMT
Boeing shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.69X compared with Lockheed Martin’s P/S F12M of 1.53X.
Liquidity of BA & LMT
Boeing and Lockheed Martin’s current ratio is 1.18 and 1.14, respectively. A current ratio greater than one indicates that the company has enough short-term assets to liquidate to cover all short-term liabilities, if necessary.
BA & LMT’s Price Performance
In the past three months, shares of Boeing and Lockheed Martin have lost 4.5% and 16.9%, respectively, compared with the industry’s decline of 13.3%.
BA or LMT: Which Is a Better Choice Now?
Boeing continues to strengthen its position in commercial aerospace through growing aircraft demand, increased deliveries and rising revenues. The company also benefits from strong defense and space operations, supported by major contract wins and a large backlog of government and international projects. Lockheed Martin continues to secure strong defense contracts that support long-term revenue growth and business stability. Its F-35 fighter jet program remains a key driver of sales, supported by ongoing production, upgrades and global defense demand.
Our choice at the moment is Boeing, given its better price performance, strong earnings growth and better liquidity than Lockheed Martin. Both BA and LMT carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.