LDOS vs RTX vs LMT vs NOC

For growth investors, RTX Corporation (RTX) is the stronger pick with 9.

7% revenue growth year-over-year, versus 2. 2% for Northrop Grumman Corporation (NOC). Leidos Holdings, Inc. (LDOS) offers the better valuation at 11. 8x trailing P/E (11. 1x forward), making it the more compelling value choice. Analysts rate Leidos Holdings, Inc. (LDOS) a "Buy" — based on 27 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.

On trailing P/E, Leidos Holdings, Inc.

(LDOS) is the cheapest at 11. 8x versus RTX Corporation at 35. 6x. On forward P/E, Leidos Holdings, Inc. is actually cheaper at 11. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Leidos Holdings, Inc. wins at 0. 54x versus Northrop Grumman Corporation's 2. 23x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, RTX Corporation (RTX) delivered a total return of +120.

1%, compared to +33. 4% for Leidos Holdings, Inc. (LDOS). Over 10 years, the gap is even starker: RTX returned +234. 7% versus LMT's +156. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Northrop Grumman Corporation (NOC) is the lower-risk stock at 0.

03β versus RTX Corporation's 0. 51β — meaning RTX is approximately 1681% more volatile than NOC relative to the S&P 500. On balance sheet safety, RTX Corporation (RTX) carries a lower debt/equity ratio of 59% versus 3% for Lockheed Martin Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), RTX Corporation (RTX) is pulling ahead at 9.

7% versus 2. 2% for Northrop Grumman Corporation (NOC). On earnings-per-share growth, the picture is similar: RTX Corporation grew EPS 39. 7% year-over-year, compared to -3. 7% for Lockheed Martin Corporation. Over a 3-year CAGR, RTX leads at 9. 7% 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.

Northrop Grumman Corporation (NOC) is the more profitable company, earning 10.

0% net margin versus 6. 7% for Lockheed Martin Corporation — meaning it keeps 10. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LDOS leads at 12. 3% versus 10. 0% for RTX. At the gross margin level — before operating expenses — RTX leads at 20. 1%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Leidos Holdings, Inc. (LDOS) is the more undervalued stock at a PEG of 0. 54x versus Northrop Grumman Corporation's 2. 23x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Leidos Holdings, Inc. (LDOS) trades at 11. 1x forward P/E versus 25. 5x for RTX Corporation — 14. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LDOS: 55. 5% to $204. 00.

All stocks in this comparison pay dividends.

Lockheed Martin Corporation (LMT) offers the highest yield at 2. 6%, versus 1. 2% for Leidos Holdings, Inc. (LDOS).

For long-horizon retirement investors, Northrop Grumman Corporation (NOC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

03), 1. 6% yield, +186. 0% 10Y return). Both have compounded well over 10 years (NOC: +186. 0%, RTX: +234. 7%), 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.

These companies operate in different sectors (LDOS (Technology) and RTX (Industrials) and LMT (Industrials) and NOC (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: LDOS is a mid-cap deep-value stock; RTX is a large-cap quality compounder stock; LMT is a mid-cap quality compounder stock; NOC is a mid-cap quality compounder stock. 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.