Critical Analysis: RocketLab (NASDAQ:RKLB) vs. Lockheed Martin (NYSE:LMT)

Lockheed Martin (NYSE:LMT) and RocketLab (NASDAQ:RKLB) are both aerospace companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Earnings and Valuation

This table compares Lockheed Martin and RocketLab’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lockheed Martin $65.40 billion 1.50 $6.83 billion $24.84 14.22
RocketLab N/A N/A -$12.34 million N/A N/A

Lockheed Martin has higher revenue and earnings than RocketLab.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Lockheed Martin and RocketLab, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lockheed Martin 0 6 2 0 2.25
RocketLab 0 1 2 0 2.67

Lockheed Martin presently has a consensus price target of $401.03, suggesting a potential upside of 13.93%. RocketLab has a consensus price target of 22.00, suggesting a potential upside of 43.60%. Given RocketLab’s stronger consensus rating and higher probable upside, analysts clearly believe RocketLab is more favorable than Lockheed Martin.

Institutional and Insider Ownership

74.5% of Lockheed Martin shares are owned by institutional investors. Comparatively, 30.5% of RocketLab shares are owned by institutional investors. 0.2% of Lockheed Martin shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Lockheed Martin 10.69% 123.35% 14.37%
RocketLab N/A N/A N/A

Summary

Lockheed Martin beats RocketLab on 7 of the 9 factors compared between the two stocks.

About Lockheed Martin

Lockheed Martin Corp. operates as a global security and aerospace company, which engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services. It operates through the following business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. The Aeronautics segment researches, designs, develops, manufactures, integrates, sustains, supports, and upgrades advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. The MFC segment provides air and missile defence 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 RMS segment offers design, manufacture, service, and support for a variety of military and commercial helicopters; ship and submarine mission and combat systems; mission systems and sensors for rotary and fixed-wing aircraft; sea and land-based missile defence systems; radar systems; th

About RocketLab

Rocket Lab and Vector entered into a definitive merger agreement.

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