Boeing vs. Lockheed Martin: Which Aerospace-Defense Giant Has the Edge?

Core Insights - Geopolitical instability is driving growth for defense companies like Boeing and Lockheed Martin, with significant revenue from the U.S. government [1][2] - Proposed military spending by the U.S. government is set to increase to $1.5 trillion in fiscal 2027, which could lead to more contract opportunities for defense firms [2] Boeing (BA) Overview - Boeing's defense and space business outlook is optimistic, benefiting from its status as a major defense contractor and the U.S. government's focus on defense [4] - In Q4, Boeing's commercial aircraft deliveries rose by 180.7% year-over-year, while defense shipments increased by 2.8%, indicating improved cash flow and operational management [5] - Boeing forecasts a $4.7 trillion market opportunity for commercial aviation support and services from 2025 to 2044, with a backlog of $24.63 billion as of September 30, 2025 [6] Lockheed Martin (LMT) Overview - Lockheed Martin maintains a strong position as a leading U.S. defense contractor, with a platform-based strategy that ensures recurring orders [7] - The F-35 program is a key growth driver, contributing approximately 26% of total net sales in Q3 2025, supported by strong deliveries and a significant backlog [7][8] - Lockheed Martin's backlog reached $179.1 billion, with major contracts expected to convert into revenues over the next two years, enhancing long-term growth visibility [8] Comparative Analysis - Boeing is experiencing a rebound in commercial aircraft deliveries and benefits from rising defense priorities, with a projected long-term earnings growth rate of 31.33% and a Zacks Consensus Estimate for 2026 EPS indicating a 111.7% increase year-over-year [11][12] - Lockheed Martin's 2026 EPS is estimated to grow by 34.07% year-over-year, with a long-term earnings growth rate of 11.85% [11][14] - Boeing's shares trade at a forward Price/Sales ratio of 1.99, compared to Lockheed Martin's 1.74, indicating a relative valuation perspective [15] Liquidity and Performance - Boeing's current ratio is 1.18, while Lockheed Martin's is 1.13, suggesting both companies have sufficient short-term assets to cover liabilities [16] - Over the past year, Boeing's shares have increased by 43%, while Lockheed Martin's shares have risen by 17.5%, reflecting stronger market performance for Boeing [17] Investment Recommendation - Boeing shows improving momentum in defense, space, and commercial sectors, supported by rising aircraft deliveries and favorable government priorities, making it a more attractive investment compared to Lockheed Martin [18][19]