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Lockheed Martin vs. General Dynamics: Which Stock is the Better Buy?
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Key Takeaways
LMT is expanding missile, fighter and munitions programs with a $186.4B backlog supporting growth.
General Dynamics ended Q1 2026 with a $130.84B backlog and $188.44B in estimated contract value.
GD and LMT differ on valuation, debt, earnings estimate revisions and recent share performance.
Lockheed Martin (LMT - Free Report) and General Dynamics (GD - Free Report) derive a significant portion of their revenues from the U.S. Department of Defense and play critical roles in supporting national security through the development of advanced military platforms, combat systems, naval vessels, aerospace technologies and mission-critical services. Their long-standing relationships with the Pentagon, combined with large contract backlogs and exposure to rising global defense spending, make them natural peers for investors evaluating opportunities in the defense sector.
Both companies are positioned to benefit from long-term trends supporting defense spending. Heightened geopolitical tensions, military modernization efforts, growing demand for missile defense systems, increased naval investment and rising defense budgets among NATO allies and Indo-Pacific nations are driving sustained demand for advanced defense technologies. Since governments typically commit to multi-year procurement programs, both Lockheed Martin and General Dynamics enjoy relatively predictable revenue streams supported by long-term contracts and sizeable order backlogs.
Let's compare the two stocks' fundamentals to determine which one is better positioned at present.
Factors Acting 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, Missiles and Fire Control was awarded $7 billion of PAC-3 contracts, including a fully funded $4.8 billion undefinitized contract, and the company also secured long-lead materials for F-35 Lots 20 and 21. These order flows, together with continued activity across strategic missile, combat systems and sustainment work, underpin a backlog of $186.4 billion as of March 29, 2026.
Management indicated that the current U.S. budget rollout reflects priorities such as accelerating munitions production, strengthening integrated air and missile defense, advancing next-generation aircraft and expanding space capabilities. These areas align closely with the company’s core platforms across PAC-3, THAAD and PrSM, as well as fighter and strategic programs. LMT has also signed multiyear framework agreements with the Department of War to scale munitions production and is planning investments across more than 20 new or modernized facilities, which can improve capacity planning and reduce supply-chain bottlenecks over time.
Factors Acting in Favor of GD Stock
General Dynamics’ solid number of award wins and a strong global presence will help maintain a steady growth momentum. At the end of the first quarter of 2026, the company witnessed a solid backlog of $130.84 billion, driven by a strong order inflow. The estimated contract value, which combines the total backlog with the potential contract value, totaled $188.44 billion at the end of the first quarter of 2026. The strength of the order flow was driven by strong demand across the company’s product and services portfolio.
Significant awards won by General Dynamics in the last reported quarter included a $15.4 billion contract for continued design and support work on the Columbia-class submarines program. Such impressive order trends and strong backlog count indicate solid demand for the company’s products, thereby bolstering its revenue generation prospects significantly.
How Does the Zacks Consensus Estimate Compare for LMT & GD?
The Zacks Consensus Estimate for Lockheed Martin’s 2026 earnings per share (EPS) indicates an increase of 0.03% over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for General Dynamics’ 2026 EPS indicates an increase of 0.12% over the past 60 days.
Image Source: Zacks Investment Research
Valuation for LMT & GD
Lockheed Martin shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.44X compared with General Dynamics’ 1.76X.
LMT & GD’s Debt Position
Currently, Lockheed Martin and General Dynamics’ total debt to capital is 73.43% and 23.51%, respectively.
Image Source: Zacks Investment Research
LMT & GD’s Price Performance
In the past three months, shares of General Dynamics have increased 15.4%, while those of Lockheed Martin have declined 4.3%, compared with the industry’s growth of 1%.
Image Source: Zacks Investment Research
LMT or GD: Which is a Better Choice Now?
Lockheed Martin continues to secure major defense contracts across its core missile, fighter aircraft and sustainment programs. LMT is also well-positioned to benefit from U.S. defense priorities focused on expanding munitions production, strengthening missile defense and advancing next-generation aircraft. General Dynamics continues to benefit from strong demand across its defense portfolio, with robust contract wins supporting a large backlog and providing solid long-term revenue visibility. Recent major program awards, particularly in naval defense, highlight the company's strong market position and reinforce its growth prospects as it executes on long-term government contracts.
Our choice at the moment is General Dynamics, given its better price performance, strong earnings growth and better debt position than Lockheed Martin. GD carries a Zacks Rank #2 (Buy) and LMT has a Zacks Rank #3 (Hold) at present.
View the Zacks #1 Rank List
Image: Bigstock
Lockheed Martin vs. General Dynamics: Which Stock is the Better Buy?
Key Takeaways
Lockheed Martin (LMT - Free Report) and General Dynamics (GD - Free Report) derive a significant portion of their revenues from the U.S. Department of Defense and play critical roles in supporting national security through the development of advanced military platforms, combat systems, naval vessels, aerospace technologies and mission-critical services. Their long-standing relationships with the Pentagon, combined with large contract backlogs and exposure to rising global defense spending, make them natural peers for investors evaluating opportunities in the defense sector.
Both companies are positioned to benefit from long-term trends supporting defense spending. Heightened geopolitical tensions, military modernization efforts, growing demand for missile defense systems, increased naval investment and rising defense budgets among NATO allies and Indo-Pacific nations are driving sustained demand for advanced defense technologies. Since governments typically commit to multi-year procurement programs, both Lockheed Martin and General Dynamics enjoy relatively predictable revenue streams supported by long-term contracts and sizeable order backlogs.
Let's compare the two stocks' fundamentals to determine which one is better positioned at present.
Factors Acting 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, Missiles and Fire Control was awarded $7 billion of PAC-3 contracts, including a fully funded $4.8 billion undefinitized contract, and the company also secured long-lead materials for F-35 Lots 20 and 21. These order flows, together with continued activity across strategic missile, combat systems and sustainment work, underpin a backlog of $186.4 billion as of March 29, 2026.
Management indicated that the current U.S. budget rollout reflects priorities such as accelerating munitions production, strengthening integrated air and missile defense, advancing next-generation aircraft and expanding space capabilities. These areas align closely with the company’s core platforms across PAC-3, THAAD and PrSM, as well as fighter and strategic programs. LMT has also signed multiyear framework agreements with the Department of War to scale munitions production and is planning investments across more than 20 new or modernized facilities, which can improve capacity planning and reduce supply-chain bottlenecks over time.
Factors Acting in Favor of GD Stock
General Dynamics’ solid number of award wins and a strong global presence will help maintain a steady growth momentum. At the end of the first quarter of 2026, the company witnessed a solid backlog of $130.84 billion, driven by a strong order inflow. The estimated contract value, which combines the total backlog with the potential contract value, totaled $188.44 billion at the end of the first quarter of 2026. The strength of the order flow was driven by strong demand across the company’s product and services portfolio.
Significant awards won by General Dynamics in the last reported quarter included a $15.4 billion contract for continued design and support work on the Columbia-class submarines program. Such impressive order trends and strong backlog count indicate solid demand for the company’s products, thereby bolstering its revenue generation prospects significantly.
How Does the Zacks Consensus Estimate Compare for LMT & GD?
The Zacks Consensus Estimate for Lockheed Martin’s 2026 earnings per share (EPS) indicates an increase of 0.03% over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for General Dynamics’ 2026 EPS indicates an increase of 0.12% over the past 60 days.
Image Source: Zacks Investment Research
Valuation for LMT & GD
Lockheed Martin shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.44X compared with General Dynamics’ 1.76X.
LMT & GD’s Debt Position
Currently, Lockheed Martin and General Dynamics’ total debt to capital is 73.43% and 23.51%, respectively.
Image Source: Zacks Investment Research
LMT & GD’s Price Performance
In the past three months, shares of General Dynamics have increased 15.4%, while those of Lockheed Martin have declined 4.3%, compared with the industry’s growth of 1%.
Image Source: Zacks Investment Research
LMT or GD: Which is a Better Choice Now?
Lockheed Martin continues to secure major defense contracts across its core missile, fighter aircraft and sustainment programs. LMT is also well-positioned to benefit from U.S. defense priorities focused on expanding munitions production, strengthening missile defense and advancing next-generation aircraft. General Dynamics continues to benefit from strong demand across its defense portfolio, with robust contract wins supporting a large backlog and providing solid long-term revenue visibility. Recent major program awards, particularly in naval defense, highlight the company's strong market position and reinforce its growth prospects as it executes on long-term government contracts.
Our choice at the moment is General Dynamics, given its better price performance, strong earnings growth and better debt position than Lockheed Martin. GD carries a Zacks Rank #2 (Buy) and LMT has a Zacks Rank #3 (Hold) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.