Financial Review: Lockheed Martin (NYSE:LMT) and Meggitt (OTCMKTS:MEGGY)

Meggitt (OTCMKTS:MEGGY) and Lockheed Martin (NYSE:LMT) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Valuation & Earnings

This table compares Meggitt and Lockheed Martin”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meggitt	$2.05 billion	3.38	$42.90 million	N/A	N/A
Lockheed Martin	$75.05 billion	1.73	$5.02 billion	$27.13	20.71

Lockheed Martin has higher revenue and earnings than Meggitt.

Analyst Ratings

This is a breakdown of current ratings and price targets for Meggitt and Lockheed Martin, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Meggitt	0	0	0	0	0.00
Lockheed Martin	1	10	7	1	2.42

Lockheed Martin has a consensus target price of $632.39, indicating a potential upside of 12.56%. Given Lockheed Martin’s stronger consensus rating and higher probable upside, analysts plainly believe Lockheed Martin is more favorable than Meggitt.

Profitability

This table compares Meggitt and Lockheed Martin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Meggitt	N/A	N/A	N/A
Lockheed Martin	8.16%	91.42%	11.02%

Insider & Institutional Ownership

74.2% of Lockheed Martin shares are owned by institutional investors. 0.1% of Lockheed Martin shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Meggitt has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, Lockheed Martin has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500.

Summary

Lockheed Martin beats Meggitt on 11 of the 13 factors compared between the two stocks.

About Meggitt

Meggitt PLC designs and manufactures components and sub-systems in the United Kingdom, rest of Europe, the United States, and internationally. The company operates in four segments: Airframe Systems, Engine Systems, Energy & Equipment, and Services & Support. It offers ice protection products, radomes, and structures; air data and flight display products; brake control and tyre pressure monitoring systems, and wheels and brakes; engine health and vibration monitors, H2/O2 analyzers, and turbine monitoring and protection products; and aircraft cameras and security systems, and wireless aircraft systems. The company also provides ammunition handling, thermal, weapon scoring, and weapon training systems; energy storage, power conversion and distribution, and power generation systems; ducting systems, engine composites, and flow control valves; and fire protection and controls comprising bleed air leak detection products, cables, electronic control units, fire and overheat detection products, and fire suppression products. In addition, it offers ground fueling, and fuel systems and tanks; motion control actuators, electric motor drives, and electric motors; oxygen and specialty restraint systems; and accelerometers, ceramics, fluid sensors, magnetic and current sensors, position and inertial sensors, pressure sensors, speed sensors, and temperature sensors. Further, the company provides polymer seals; heat exchangers, printed circuit heat exchangers, thermal components, and thermal management systems; and live fire and virtual trainers, as well as aftermarket services. It serves aerospace, defense, and energy and equipment markets. The company was formerly known as Meggitt Holdings Public Limited Company and changed its name to Meggitt PLC in April 1989. Meggitt PLC was incorporated in 1947 and is headquartered in Coventry, the United Kingdom.

About Lockheed Martin

Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. The company operates through Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space segments. The Aeronautics segment offers combat and air mobility aircraft, unmanned air vehicles, and related technologies. The Missiles and Fire Control segment provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support, and integration services; manned and unmanned ground vehicles; and energy management solutions. The Rotary and Mission Systems segment offers military and commercial helicopters, surface ships, sea and land-based missile defense systems, radar systems, sea and air-based mission and combat systems, command and control mission solutions, cyber solutions, and simulation and training solutions. The Space segment offers satellites; space transportation systems; strategic, advanced strike, and defensive systems; and classified systems and services in support of national security systems. This segment also provides network-enabled situational awareness and integrates space and ground global systems to help its customers gather, analyze, and securely distribute critical intelligence data. It serves primarily serves the U.S. government, as well as foreign military sales contracted through the U.S. government. The company was founded in 1912 and is based in Bethesda, Maryland.