LHX vs CAT vs RTX vs DE vs LMT

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

7% revenue growth year-over-year, versus -11. 6% for Deere & Company (DE). Lockheed Martin Corporation (LMT) offers the better valuation at 23. 8x trailing P/E (17. 1x forward), making it the more compelling value choice. Analysts rate L3Harris Technologies, Inc. (LHX) a "Buy" — based on 32 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, Lockheed Martin Corporation (LMT) is the cheapest at 23.

8x versus Caterpillar Inc. at 52. 4x. On forward P/E, Lockheed Martin Corporation is actually cheaper at 17. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Caterpillar Inc. wins at 1. 42x versus L3Harris Technologies, Inc. 's 2. 42x — a reasonable growth-adjusted valuation.

Over the past 5 years, Caterpillar Inc.

(CAT) delivered a total return of +384. 5%, compared to +45. 2% for L3Harris Technologies, Inc. (LHX). Over 10 years, the gap is even starker: CAT returned +1247% versus LMT's +158. 1%. 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), Lockheed Martin Corporation (LMT) is the lower-risk stock at 0.

13β versus Caterpillar Inc. 's 1. 64β — meaning CAT is approximately 1202% more volatile than LMT relative to the S&P 500. On balance sheet safety, L3Harris Technologies, Inc. (LHX) carries a lower debt/equity ratio of 53% 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 -11. 6% for Deere & Company (DE). On earnings-per-share growth, the picture is similar: RTX Corporation grew EPS 39. 7% year-over-year, compared to -27. 8% for Deere & Company. 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.

Caterpillar Inc.

(CAT) is the more profitable company, earning 13. 1% net margin versus 6. 7% for Lockheed Martin Corporation — meaning it keeps 13. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DE leads at 18. 8% versus 10. 0% for RTX. At the gross margin level — before operating expenses — DE leads at 36. 5%, 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, Caterpillar Inc. (CAT) is the more undervalued stock at a PEG of 1. 42x versus L3Harris Technologies, Inc. 's 2. 42x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Lockheed Martin Corporation (LMT) trades at 17. 1x forward P/E versus 40. 0x for Caterpillar Inc. — 22. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LMT: 24. 3% to $635. 11.

All stocks in this comparison pay dividends.

Lockheed Martin Corporation (LMT) offers the highest yield at 2. 6%, versus 0. 6% for Caterpillar Inc. (CAT).

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.

13), 2. 6% yield, +158. 1% 10Y return). Caterpillar Inc. (CAT) carries a higher beta of 1. 64 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (LMT: +158. 1%, CAT: +1247%), 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.

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.