Aerospace & Defense
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HII vs LMT
Revenue, margins, valuation, and 5-year total return — side by side.
Aerospace & Defense
HII vs LMT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Aerospace & Defense | Aerospace & Defense |
| Market Cap | $12.58B | $118.52B |
| Revenue (TTM) | $12.85B | $75.11B |
| Net Income (TTM) | $605M | $4.79B |
| Gross Margin | 12.4% | 9.8% |
| Operating Margin | 4.9% | 9.9% |
| Forward P/E | 18.4x | 17.2x |
| Total Debt | $3.15B | $21.70B |
| Cash & Equiv. | $774M | $4.12B |
HII vs LMT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Huntington Ingalls … (HII) | 100 | 159.9 | +59.9% |
| Lockheed Martin Cor… (LMT) | 100 | 132.4 | +32.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: HII vs LMT
Each card shows where this stock fits in a portfolio — not just who wins on paper.
HII is the clearest fit if your priority is growth exposure and sleep-well-at-night.
- Rev growth 8.2%, EPS growth 10.2%, 3Y rev CAGR 5.4%
- Lower volatility, beta 0.69, Low D/E 62.0%, current ratio 1.13x
- 8.2% revenue growth vs LMT's 5.7%
LMT carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 23 yrs, beta 0.12, yield 2.6%
- 157.0% 10Y total return vs HII's 132.6%
- Beta 0.12, yield 2.6%, current ratio 1.09x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 8.2% revenue growth vs LMT's 5.7% | |
| Value | Lower P/E (17.2x vs 18.4x) | |
| Quality / Margins | 6.4% margin vs HII's 4.7% | |
| Stability / Safety | Beta 0.12 vs HII's 0.69 | |
| Dividends | 2.6% yield, 23-year raise streak, vs HII's 1.7% | |
| Momentum (1Y) | +39.5% vs LMT's +12.7% | |
| Efficiency (ROA) | 8.0% ROA vs HII's 4.9%, ROIC 23.9% vs 6.2% |
HII vs LMT — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
HII vs LMT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
HII leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
LMT is the larger business by revenue, generating $75.1B annually — 5.8x HII's $12.8B. Profitability is closely matched — net margins range from 6.4% (LMT) to 4.7% (HII). On growth, HII holds the edge at +13.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $12.8B | $75.1B |
| EBITDAEarnings before interest/tax | $953M | $8.7B |
| Net IncomeAfter-tax profit | $605M | $4.8B |
| Free Cash FlowCash after capex | $1.1B | $5.7B |
| Gross MarginGross profit ÷ Revenue | +12.4% | +9.8% |
| Operating MarginEBIT ÷ Revenue | +4.9% | +9.9% |
| Net MarginNet income ÷ Revenue | +4.7% | +6.4% |
| FCF MarginFCF ÷ Revenue | +8.2% | +7.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +13.4% | +0.3% |
| EPS Growth (YoY)Latest quarter vs prior year | 0.0% | -11.5% |
Valuation Metrics
HII leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 20.8x trailing earnings, HII trades at a 13% valuation discount to LMT's 23.9x P/E. On an enterprise value basis, HII's 16.0x EV/EBITDA is more attractive than LMT's 16.1x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $12.6B | $118.5B |
| Enterprise ValueMkt cap + debt − cash | $15.0B | $136.1B |
| Trailing P/EPrice ÷ TTM EPS | 20.76x | 23.93x |
| Forward P/EPrice ÷ next-FY EPS est. | 18.43x | 17.18x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 15.96x | 16.12x |
| Price / SalesMarket cap ÷ Revenue | 1.01x | 1.58x |
| Price / BookPrice ÷ Book value/share | 2.48x | 17.74x |
| Price / FCFMarket cap ÷ FCF | 15.85x | 17.16x |
Profitability & Efficiency
HII leads this category, winning 5 of 9 comparable metrics.
Profitability & Efficiency
LMT delivers a 74.5% return on equity — every $100 of shareholder capital generates $75 in annual profit, vs $12 for HII. HII carries lower financial leverage with a 0.62x debt-to-equity ratio, signaling a more conservative balance sheet compared to LMT's 3.23x. On the Piotroski fundamental quality scale (0–9), HII scores 9/9 vs LMT's 6/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +12.0% | +74.5% |
| ROA (TTM)Return on assets | +4.9% | +8.0% |
| ROICReturn on invested capital | +6.2% | +23.9% |
| ROCEReturn on capital employed | +6.4% | +21.3% |
| Piotroski ScoreFundamental quality 0–9 | 9 | 6 |
| Debt / EquityFinancial leverage | 0.62x | 3.23x |
| Net DebtTotal debt minus cash | $2.4B | $17.6B |
| Cash & Equiv.Liquid assets | $774M | $4.1B |
| Total DebtShort + long-term debt | $3.1B | $21.7B |
| Interest CoverageEBIT ÷ Interest expense | 8.86x | 6.08x |
Total Returns (Dividends Reinvested)
HII leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in HII five years ago would be worth $15,797 today (with dividends reinvested), compared to $14,854 for LMT. Over the past 12 months, HII leads with a +39.5% total return vs LMT's +12.7%. The 3-year compound annual growth rate (CAGR) favors HII at 20.0% vs LMT's 7.0% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -8.2% | +4.2% |
| 1-Year ReturnPast 12 months | +39.5% | +12.7% |
| 3-Year ReturnCumulative with dividends | +72.7% | +22.6% |
| 5-Year ReturnCumulative with dividends | +58.0% | +48.5% |
| 10-Year ReturnCumulative with dividends | +132.6% | +157.0% |
| CAGR (3Y)Annualised 3-year return | +20.0% | +7.0% |
Risk & Volatility
LMT leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
LMT is the less volatile stock with a 0.12 beta — it tends to amplify market swings less than HII's 0.69 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. LMT currently trades 74.3% from its 52-week high vs HII's 69.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.69x | 0.12x |
| 52-Week HighHighest price in past year | $460.00 | $692.00 |
| 52-Week LowLowest price in past year | $215.05 | $410.11 |
| % of 52W HighCurrent price vs 52-week peak | +69.5% | +74.3% |
| RSI (14)Momentum oscillator 0–100 | 23.4 | 24.5 |
| Avg Volume (50D)Average daily shares traded | 474K | 1.5M |
Analyst Outlook
LMT leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates HII as "Hold" and LMT as "Buy". Consensus price targets imply 31.4% upside for HII (target: $420) vs 23.5% for LMT (target: $635). For income investors, LMT offers the higher dividend yield at 2.63% vs HII's 1.70%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $420.00 | $635.11 |
| # AnalystsCovering analysts | 27 | 37 |
| Dividend YieldAnnual dividend ÷ price | +1.7% | +2.6% |
| Dividend StreakConsecutive years of raises | 13 | 23 |
| Dividend / ShareAnnual DPS | $5.42 | $13.50 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +2.5% |
HII leads in 4 of 6 categories (Income & Cash Flow, Valuation Metrics). LMT leads in 2 (Risk & Volatility, Analyst Outlook).
HII vs LMT: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is HII or LMT a better buy right now?
For growth investors, Huntington Ingalls Industries, Inc.
(HII) is the stronger pick with 8. 2% revenue growth year-over-year, versus 5. 7% for Lockheed Martin Corporation (LMT). Huntington Ingalls Industries, Inc. (HII) offers the better valuation at 20. 8x trailing P/E (18. 4x forward), making it the more compelling value choice. Analysts rate Lockheed Martin Corporation (LMT) a "Buy" — based on 37 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — HII or LMT?
On trailing P/E, Huntington Ingalls Industries, Inc.
(HII) is the cheapest at 20. 8x versus Lockheed Martin Corporation at 23. 9x. On forward P/E, Lockheed Martin Corporation is actually cheaper at 17. 2x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — HII or LMT?
Over the past 5 years, Huntington Ingalls Industries, Inc.
(HII) delivered a total return of +58. 0%, compared to +48. 5% for Lockheed Martin Corporation (LMT). Over 10 years, the gap is even starker: LMT returned +157. 0% versus HII's +132. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — HII or LMT?
By beta (market sensitivity over 5 years), Lockheed Martin Corporation (LMT) is the lower-risk stock at 0.
12β versus Huntington Ingalls Industries, Inc. 's 0. 69β — meaning HII is approximately 457% more volatile than LMT relative to the S&P 500. On balance sheet safety, Huntington Ingalls Industries, Inc. (HII) carries a lower debt/equity ratio of 62% versus 3% for Lockheed Martin Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — HII or LMT?
By revenue growth (latest reported year), Huntington Ingalls Industries, Inc.
(HII) is pulling ahead at 8. 2% versus 5. 7% for Lockheed Martin Corporation (LMT). On earnings-per-share growth, the picture is similar: Huntington Ingalls Industries, Inc. grew EPS 10. 2% year-over-year, compared to -3. 7% for Lockheed Martin Corporation. Over a 3-year CAGR, HII leads at 5. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — HII or LMT?
Lockheed Martin Corporation (LMT) is the more profitable company, earning 6.
7% net margin versus 4. 8% for Huntington Ingalls Industries, Inc. — meaning it keeps 6. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LMT leads at 10. 3% versus 4. 9% for HII. At the gross margin level — before operating expenses — HII leads at 12. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is HII or LMT more undervalued right now?
On forward earnings alone, Lockheed Martin Corporation (LMT) trades at 17.
2x forward P/E versus 18. 4x for Huntington Ingalls Industries, Inc. — 1. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HII: 31. 4% to $420. 00.
08Which pays a better dividend — HII or LMT?
All stocks in this comparison pay dividends.
Lockheed Martin Corporation (LMT) offers the highest yield at 2. 6%, versus 1. 7% for Huntington Ingalls Industries, Inc. (HII).
09Is HII or LMT better for a retirement portfolio?
For long-horizon retirement investors, Lockheed Martin Corporation (LMT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
12), 2. 6% yield, +157. 0% 10Y return). Both have compounded well over 10 years (LMT: +157. 0%, HII: +132. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between HII and LMT?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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