We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
LMT vs. LHX: Which Defense Company Has Stronger Growth Drivers?
Read MoreHide Full Article
Key Takeaways
Lockheed Martin's backlog reached $230 billion after $65 billion of second-quarter orders.
LMT's missile sales rose 19% as PAC-3, THAAD and PrSM production increased in 2026.
L3Harris is expanding space sensing and missile defense while streamlining its portfolio.
Lockheed Martin (LMT - Free Report) and L3Harris Technologies (LHX - Free Report) are two major U.S. defense companies, but they have different business profiles and exposure across the defense industry.
Lockheed Martin is the larger and more diversified of the two, with major exposure to fighter aircraft, missiles, missile defense, helicopters, space systems and other defense platforms. Its portfolio includes programs such as the F-35, F-16, C-130J, THAAD and various space systems. L3Harris has a different portfolio emphasis, focusing more heavily on communications, electronic warfare, sensing, space systems, missile technologies and mission systems.
The companies also provide different exposure to the changing nature of warfare. LMT is more closely tied to major defense platforms and weapons systems, including advanced aircraft, missile defense and strategic systems. LHX is more concentrated in the technology layer of defense, including secure communications, electronic warfare, sensors, space-based capabilities and networking.
Let's compare the stocks' fundamentals to determine which one is better positioned at present.
Tailwinds for LMT Stock
Lockheed Martin is converting elevated demand into longer-duration awards that improve revenue visibility and support capacity planning. Backlog reached a record $230 billion as of June 28, 2026, following $65 billion in second-quarter orders and a 3.2 book-to-bill ratio. The total includes a seven-year, $35 billion contract to quadruple THAAD interceptor production, alongside new GMLRS, HIMARS, radar and space awards.
LMT’s portfolio is focused on areas benefiting from increased funding and procurement priority, including munitions, integrated air and missile defense, hypersonics, space-based interceptors and counter-drone systems. Missiles and Fire Control sales rose 19% in the second quarter of 2026 as PAC-3, THAAD and PrSM production increased, while segment profit advanced 24%. The company is also expanding facilities in Alabama and Florida and investing ahead of awards to increase production capacity.
Tailwinds for LHX Stock
L3Harris’ space sensing and missile franchises remain aligned with Golden Dome, missile defense and hypersonic tracking initiatives. Second-quarter 2026 orders totaled $7.3 billion, producing 1.2x book-to-bill and lifting backlog to a record $42 billion from $40.7 billion at the end of the first quarter of 2026. The company has secured $2.4 billion of new space contracts since fourth-quarter 2025 and sees a $9 billion pipeline across missile warning, missile defense and classified missions.
The company continues to refine its portfolio around core defense priorities while integrating prior acquisitions. In August 2026, the company completed the sale of a majority stake in its commercial space propulsion, power and electronics businesses to AE Industrial Partners for an enterprise value of $845 million. L3Harris plans to use the proceeds to invest in facilities and advanced technologies to meet growing demand. Management has also completed the implementation phase of its LHX NeXt initiative and is increasing investments in innovation and capacity, which could support operating leverage as new programs ramp up.
How Do Zacks Estimates Compare for LMT & LHX?
The Zacks Consensus Estimate for Lockheed Martin’s 2026 and 2027 earnings per share (EPS) indicates an increase of 31.7% and 8.44%, respectively. LMT’s long-term (three to five years) earnings growth rate is 15.13%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for L3Harris’ 2026 and 2027 EPS indicates an increase of 9.79% and 14.44%, respectively. LHX’s long-term earnings growth rate is 13.19%.
Image Source: Zacks Investment Research
Valuation for LMT & LHX
Lockheed Martin’s shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.45X compared with L3Harris’ 1.80X.
Image Source: Zacks Investment Research
Liquidity of LMT & LHX
Lockheed Martin and L3Harris’ current ratio is 1.19 and 1.18, 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.
LMT & LHX’s Price Performance
In the past three months, shares of Lockheed Martin have increased 6.8%, while those of L3Harris have declined 16.7%.
Image Source: Zacks Investment Research
LMT or LHX: Which Is a Better Choice Now?
Lockheed Martin is converting strong defense demand into longer-term contracts, improving revenue visibility and supporting capacity expansion across key programs. Its portfolio focuses on high-priority areas such as munitions, missile defense, hypersonics, space systems and counter-drone technologies, while the company continues investing to expand production capacity. L3Harris is expanding its exposure to space sensing, missile defense and hypersonic tracking while building a growing pipeline of new defense programs. LHX is also streamlining its portfolio and redirecting resources toward advanced technologies, facilities and capacity expansion to support future program growth.
Our choice at the moment is Lockheed Martin, given its better price performance, stronger near-term earnings growth and slightly better liquidity than L3Harris. LMT carries a Zacks Rank #2 (Buy) and LHX has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
Image: Bigstock
LMT vs. LHX: Which Defense Company Has Stronger Growth Drivers?
Key Takeaways
Lockheed Martin (LMT - Free Report) and L3Harris Technologies (LHX - Free Report) are two major U.S. defense companies, but they have different business profiles and exposure across the defense industry.
Lockheed Martin is the larger and more diversified of the two, with major exposure to fighter aircraft, missiles, missile defense, helicopters, space systems and other defense platforms. Its portfolio includes programs such as the F-35, F-16, C-130J, THAAD and various space systems. L3Harris has a different portfolio emphasis, focusing more heavily on communications, electronic warfare, sensing, space systems, missile technologies and mission systems.
The companies also provide different exposure to the changing nature of warfare. LMT is more closely tied to major defense platforms and weapons systems, including advanced aircraft, missile defense and strategic systems. LHX is more concentrated in the technology layer of defense, including secure communications, electronic warfare, sensors, space-based capabilities and networking.
Let's compare the stocks' fundamentals to determine which one is better positioned at present.
Tailwinds for LMT Stock
Lockheed Martin is converting elevated demand into longer-duration awards that improve revenue visibility and support capacity planning. Backlog reached a record $230 billion as of June 28, 2026, following $65 billion in second-quarter orders and a 3.2 book-to-bill ratio. The total includes a seven-year, $35 billion contract to quadruple THAAD interceptor production, alongside new GMLRS, HIMARS, radar and space awards.
LMT’s portfolio is focused on areas benefiting from increased funding and procurement priority, including munitions, integrated air and missile defense, hypersonics, space-based interceptors and counter-drone systems. Missiles and Fire Control sales rose 19% in the second quarter of 2026 as PAC-3, THAAD and PrSM production increased, while segment profit advanced 24%. The company is also expanding facilities in Alabama and Florida and investing ahead of awards to increase production capacity.
Tailwinds for LHX Stock
L3Harris’ space sensing and missile franchises remain aligned with Golden Dome, missile defense and hypersonic tracking initiatives. Second-quarter 2026 orders totaled $7.3 billion, producing 1.2x book-to-bill and lifting backlog to a record $42 billion from $40.7 billion at the end of the first quarter of 2026. The company has secured $2.4 billion of new space contracts since fourth-quarter 2025 and sees a $9 billion pipeline across missile warning, missile defense and classified missions.
The company continues to refine its portfolio around core defense priorities while integrating prior acquisitions. In August 2026, the company completed the sale of a majority stake in its commercial space propulsion, power and electronics businesses to AE Industrial Partners for an enterprise value of $845 million. L3Harris plans to use the proceeds to invest in facilities and advanced technologies to meet growing demand. Management has also completed the implementation phase of its LHX NeXt initiative and is increasing investments in innovation and capacity, which could support operating leverage as new programs ramp up.
How Do Zacks Estimates Compare for LMT & LHX?
The Zacks Consensus Estimate for Lockheed Martin’s 2026 and 2027 earnings per share (EPS) indicates an increase of 31.7% and 8.44%, respectively. LMT’s long-term (three to five years) earnings growth rate is 15.13%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for L3Harris’ 2026 and 2027 EPS indicates an increase of 9.79% and 14.44%, respectively. LHX’s long-term earnings growth rate is 13.19%.
Image Source: Zacks Investment Research
Valuation for LMT & LHX
Lockheed Martin’s shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.45X compared with L3Harris’ 1.80X.
Image Source: Zacks Investment Research
Liquidity of LMT & LHX
Lockheed Martin and L3Harris’ current ratio is 1.19 and 1.18, 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.
LMT & LHX’s Price Performance
In the past three months, shares of Lockheed Martin have increased 6.8%, while those of L3Harris have declined 16.7%.
Image Source: Zacks Investment Research
LMT or LHX: Which Is a Better Choice Now?
Lockheed Martin is converting strong defense demand into longer-term contracts, improving revenue visibility and supporting capacity expansion across key programs. Its portfolio focuses on high-priority areas such as munitions, missile defense, hypersonics, space systems and counter-drone technologies, while the company continues investing to expand production capacity. L3Harris is expanding its exposure to space sensing, missile defense and hypersonic tracking while building a growing pipeline of new defense programs. LHX is also streamlining its portfolio and redirecting resources toward advanced technologies, facilities and capacity expansion to support future program growth.
Our choice at the moment is Lockheed Martin, given its better price performance, stronger near-term earnings growth and slightly better liquidity than L3Harris. LMT carries a Zacks Rank #2 (Buy) and LHX has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.