Head-To-Head Comparison: BWX Technologies (BWXT) and Lockheed Martin Corporation (LMT)

BWX Technologies (NYSE: BWXT) and Lockheed Martin Corporation (NYSE:LMT) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Dividends

BWX Technologies pays an annual dividend of $0.44 per share and has a dividend yield of 0.8%. Lockheed Martin Corporation pays an annual dividend of $7.28 per share and has a dividend yield of 2.4%. BWX Technologies pays out 23.3% of its earnings in the form of a dividend. Lockheed Martin Corporation pays out 42.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lockheed Martin Corporation has raised its dividend for 14 consecutive years. Lockheed Martin Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

Net Margins Return on Equity Return on Assets
BWX Technologies 11.81% 107.13% 12.81%
Lockheed Martin Corporation 10.37% 221.92% 7.97%

Volatility and Risk

BWX Technologies has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Lockheed Martin Corporation has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Insider and Institutional Ownership

95.4% of BWX Technologies shares are owned by institutional investors. Comparatively, 79.7% of Lockheed Martin Corporation shares are owned by institutional investors. 0.8% of BWX Technologies shares are owned by company insiders. Comparatively, 0.4% of Lockheed Martin Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares BWX Technologies and Lockheed Martin Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BWX Technologies $1.62 billion 3.29 $322.78 million $1.89 28.44
Lockheed Martin Corporation $49.05 billion 1.78 $6.23 billion $17.12 17.74

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for BWX Technologies and Lockheed Martin Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BWX Technologies 0 1 4 0 2.80
Lockheed Martin Corporation 0 8 8 0 2.50

BWX Technologies presently has a consensus price target of $51.40, suggesting a potential downside of 4.37%. Lockheed Martin Corporation has a consensus price target of $288.63, suggesting a potential downside of 4.98%. Given BWX Technologies’ stronger consensus rating and higher possible upside, research analysts clearly believe BWX Technologies is more favorable than Lockheed Martin Corporation.

Summary

BWX Technologies beats Lockheed Martin Corporation on 9 of the 17 factors compared between the two stocks.

BWX Technologies Company Profile

BWX Technologies, Inc. is a manufacturer of nuclear components and a service provider. The Company’s businesses focus on the design, engineering and manufacture of precision naval nuclear components, reactors and nuclear fuel for the United States Government. Its segments include Nuclear Operations, Technical Services, Nuclear Energy and Other. It provides uranium processing and environmental site restoration services, as well as a range of products and services to customers in the nuclear power industry. Nuclear Operations engineers, designs and manufactures precision naval nuclear components and reactors for the United States Department of Energy/National Nuclear Security Administration’s Naval Nuclear Propulsion Program. Technical Services provides various services to the United States Government. Nuclear Energy designs, licenses, manufactures and delivers commercial nuclear steam generators, pressure vessels, reactor components, heat exchangers and other auxiliary equipment.

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.

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