Lockheed Martin vs Northrop Grumman: Stock Comparison
Data as of November 7, 2026. Refreshed weekly from SEC filings and market data.
Northrop Grumman is cheaper on earnings, at 16.5 times against 20.1; Northrop Grumman keeps the higher net margin (10.4% against 8.2%); Lockheed Martin grew revenue faster over the last year (7.9% against 6.5%); dividend yield is about the same (2.5% and 1.8%). Lockheed Martin clears 5 of this site's 8 value filters and Northrop Grumman 5. Figures are as of November 7, 2026; each is on the page below with its source.
How do Lockheed Martin and Northrop Grumman compare on the numbers?
| Measure | Lockheed Martin (LMT) | Northrop Grumman (NOC) | Clearer lead |
|---|---|---|---|
| Share price | $567.08 | $525.01 | |
| Market value | $131 billion | $74.6 billion | |
| P/E ratio (trailing) | 20.1 | 16.5 | NOC |
| PEG ratio | 1.14 | 2.48 | LMT |
| Free-cash-flow yield | 6.6% | 7.6% | About the same |
| Net profit margin | 8.2% | 10.4% | NOC |
| Revenue growth, last year | 7.9% | 6.5% | LMT |
| Return on equity | 78.8% | 25.7% | LMT |
| Debt to equity | 2.04 | 0.81 | NOC |
| Dividend yield | 2.5% | 1.8% | About the same |
| Margin of safety (DCF) | +11.6% | +22.7% | NOC |
| Value filters passed (of 8) | 5 | 5 | About the same |
| Distance from 52-week high | -16.2% | -31.6% |
How have Lockheed Martin and Northrop Grumman shares done against each other?
Lockheed Martin 166Northrop Grumman 145
Each share price set to 100 on Nov 2021, to Nov 2026. Price only: dividends are not included.
From Nov 2021 to Nov 2026, Lockheed Martin shares are up 66% and Northrop Grumman shares up 45%, so Lockheed Martin has pulled ahead of Northrop Grumman by 21 points of the starting price. The deepest fall from a prior high in that window was 31% for Lockheed Martin and 38% for Northrop Grumman.
| Period | Lockheed Martin (LMT) | Northrop Grumman (NOC) |
|---|---|---|
| Last 1 year | +20.9% | -8.2% |
| Last 3 years | +25.7% | +11.5% |
| Last 5 years | +66.8% | +44.1% |
Which has grown faster, Lockheed Martin or Northrop Grumman?
Over 5 years, Lockheed Martin grew revenue 2.8% a year and earnings per share -2.4% a year; Northrop Grumman grew revenue 2.7% and earnings per share 8.9%. Its net margin averaged 8.5% at Lockheed Martin and 11.7% at Northrop Grumman.
| Measure | Lockheed Martin (LMT) | Northrop Grumman (NOC) |
|---|---|---|
| Latest fiscal year ended | Dec 2025 | Dec 2025 |
| Revenue, first year to latest | $65.4 billion to $75 billion | $36.8 billion to $42 billion |
| Revenue growth per year | 2.8% | 2.7% |
| Earnings per share, first year to latest | $24.30 to $21.49 | $19.03 to $29.08 |
| Earnings per share growth per year | -2.4% | 8.9% |
| Net margin, latest year | 6.7% | 10.0% |
| Net margin, average of the years | 8.5% | 11.7% |
| Free cash flow margin, latest year | 9.2% | 7.9% |
From each company's 10-K filings (SEC EDGAR), over its latest 5 years.
What growth does each share price assume?
| Measure | Lockheed Martin (LMT) | Northrop Grumman (NOC) |
|---|---|---|
| Free cash flow growth the price implies | 4.9% a year | 1.7% a year |
| Free cash flow per share | $37.58 | $39.77 |
| Margin of safety on this site's DCF | +11.6% | +22.7% |
At $567.08, Lockheed Martin's price implies free cash flow growth of 4.9% a year, fading to 2.5% over 10 years. That is less growth than the 8% baseline.
At $525.01, Northrop Grumman's price implies free cash flow growth of 1.7% a year, fading to 2.5% over 10 years. That is less growth than the 8% baseline.
The same model and baseline as every stock page. A price that asks for less growth is not a better company, only a lower bar to clear.
Where is each stronger?
Where Lockheed Martin leads
- Lower PEG: 1.14 against 2.48
- Faster revenue growth last year: 7.9% against 6.5%
- Higher return on equity: 78.8% against 25.7%
- A higher free-cash-flow margin in its latest filed year: 9.2% against 7.9%
Where Northrop Grumman leads
- Lower P/E: 16.5 against 20.1
- Higher net margin: 10.4% against 8.2%
- Less debt for its equity: 0.81 against 2.04
- Higher margin of safety on this site's DCF: +22.7% against +11.6%
- Faster earnings-per-share growth over its filed record: 8.9% against -2.4%
- A higher net margin in its latest filed year: 10.0% against 6.7%
- A higher average net margin: 11.7% against 8.5%
About the same on: free-cash-flow yield, dividend yield, value filters passed (of 8), revenue growth per year. A lead needs a clear gap (10% apart on a ratio, 1 point on a percentage), so a rounding difference never names a winner. A lead on one measure is not a verdict on the company.
How do the businesses differ?
Lockheed Martin. Lockheed Martin builds military aircraft, missiles, space systems and helicopters, mostly for the US government and its allies. The F-35 fighter jet is its largest program.
Northrop Grumman. Northrop Grumman builds military aircraft (including the B-21 bomber), space systems, missiles and defense electronics for the US government and its allies.
Both are in the Aerospace & Defense industry on this site.
What stands out about Lockheed Martin
- Misses 1 of the 8 value filters. It fails Price/Book < 8 (13.01); the other 5 pass and 2 were not evaluated.
- The margin of safety is falling. It went from +24% on Oct 7 to +12% on Nov 7 across 8 weekly readings.
- Strongest against peers: return on equity. At 79% (peer median 22%) it ranks 2nd of 12 among aerospace & defense stocks this site tracks.
What stands out about Northrop Grumman
- Misses 1 of the 8 value filters. It fails PEG Ratio < 1.5 (2.48); the other 5 pass and 2 were not evaluated.
- The margin of safety is falling. It went from +28% on Oct 7 to +23% on Nov 7 across 8 weekly readings.
- Strongest against peers: free-cash-flow yield. At 7.6% (peer median 4.7%) it ranks 2nd of 12 among aerospace & defense stocks this site tracks.
Frequently asked questions about Lockheed Martin and Northrop Grumman
Which is cheaper, Lockheed Martin or Northrop Grumman?
On trailing earnings, Northrop Grumman is cheaper: Lockheed Martin trades at 20.1 times and Northrop Grumman at 16.5 times. On free cash flow, the yields are 6.6% and 7.6%. Cheaper is not the same as better value: read the growth each price assumes below.
Which pays the higher dividend, Lockheed Martin or Northrop Grumman?
Their yields are about the same: Lockheed Martin 2.5% and Northrop Grumman 1.8% over the last year.
Which has grown faster, Lockheed Martin or Northrop Grumman?
Over their latest filed five years, Lockheed Martin grew revenue 2.8% a year and Northrop Grumman 2.7%; earnings per share grew -2.4% and 8.9% a year.
Which has more debt, Lockheed Martin or Northrop Grumman?
Lockheed Martin has more debt for its equity: debt to equity is 2.04 for Lockheed Martin and 0.81 for Northrop Grumman. A very high figure can also come from buybacks that shrank equity.
Which is more profitable, Lockheed Martin or Northrop Grumman?
Northrop Grumman keeps more of each sales dollar as profit: 8.2% for Lockheed Martin and 10.4% for Northrop Grumman, with a return on equity of 78.8% and 25.7%.
Which passes more of the 8 value filters?
Both clear 5 of the 8. The filters are this site's own value rules, shown with each stock's page.
Where do these numbers come from?
Prices, ratios and yield are from this site's weekly data as of November 7, 2026; growth and margins by year are from each company's 10-K filings (sources on Lockheed Martin and Northrop Grumman). The DCF is the same model on every stock page. See Editorial Standards. Educational, not investment advice.