Lockheed Martin Corporation (LMT) & Exelis (XLS) Critical Comparison

Lockheed Martin Corporation (NYSE: LMT) and Exelis (NYSE:XLS) are both mid-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.

Dividends

Lockheed Martin Corporation pays an annual dividend of $7.28 per share and has a dividend yield of 2.3%. Exelis does not pay a dividend. Lockheed Martin Corporation pays out 59.0% of its earnings in the form of a dividend. Exelis has raised its dividend for 14 consecutive years.

Profitability

This table compares Lockheed Martin Corporation and Exelis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lockheed Martin Corporation 7.31% 221.41% 7.65%
Exelis 7.52% 18.51% 4.87%

Valuation & Earnings

This table compares Lockheed Martin Corporation and Exelis’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Lockheed Martin Corporation $47.25 billion 1.92 $5.30 billion $12.33 25.70
Exelis N/A N/A N/A $1.23 20.07

Lockheed Martin Corporation has higher revenue and earnings than Exelis. Exelis is trading at a lower price-to-earnings ratio than Lockheed Martin Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Lockheed Martin Corporation and Exelis, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lockheed Martin Corporation 0 5 9 0 2.64
Exelis 0 0 0 0 N/A

Lockheed Martin Corporation presently has a consensus target price of $319.62, indicating a potential upside of 0.84%. Given Lockheed Martin Corporation’s higher possible upside, equities analysts plainly believe Lockheed Martin Corporation is more favorable than Exelis.

Institutional & Insider Ownership

78.6% of Lockheed Martin Corporation shares are owned by institutional investors. 0.4% of Lockheed Martin Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Lockheed Martin Corporation beats Exelis on 9 of the 12 factors compared between the two stocks.

Lockheed Martin Corporation Company Profile

Lockheed Martin Corporation is a security and aerospace company. The Company operates through four segments. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Missiles and Fire Control segment provides air and missile defense systems; fire control systems; manned and unmanned ground vehicles, and energy management solutions. Rotary and Mission Systems segment provides design, manufacture, service and support for a range of military and civil helicopters; mission systems and sensors for rotary and fixed-wing aircraft; simulation and training services, and unmanned systems and technologies, among others. Space Systems segment is engaged in the research and development, design, engineering and production of satellites, strategic and defensive missile systems and space transportation systems.

Exelis Company Profile

Exelis Inc. (Exelis) is a diversified aerospace, defense, information and services company. The Company delivers mission-critical solutions to military, government and commercial customers in the United States and globally. It operates in two segments: Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) Electronics and Systems, and Information and Technical Services. Its C4ISR Electronics and Systems segment provides engineered systems and solutions, including: ISR systems; integrated electronic warfare systems; radar and sonar systems; electronic attack and release systems; communications solutions; space systems, and composite aerostructures. The Company’s Information and Technical Services segment provides a range of service solutions: systems integration; network design and development; air traffic management; cyber; intelligence; advanced engineering, and space launch and range-support.

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