TXT
Textron Inc.
Aerospace & Defense
Market Cap$15.95B
5Y Perf.+195.7%
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Stock Comparison
TXT vs LMT
Revenue, margins, valuation, and 5-year total return — side by side.
LMT
Lockheed Martin Corporation
Aerospace & Defense
Market Cap$118.09B
5Y Perf.+31.9%
TXT vs LMT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | TXT | LMT |
|---|---|---|
| Industry | Aerospace & Defense | Aerospace & Defense |
| Market Cap | $15.95B | $118.09B |
| Revenue (TTM) | $15.19B | $75.11B |
| Net Income (TTM) | $934M | $4.79B |
| Gross Margin | 14.4% | 9.8% |
| Operating Margin | 8.4% | 9.9% |
| Forward P/E | 14.2x | 17.1x |
| Total Debt | $4.28B | $21.70B |
| Cash & Equiv. | $2.02B | $4.12B |
TXT vs LMT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
TXT
LMT
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Textron Inc. (TXT) | 100 | 295.7 | +195.7% |
| Lockheed Martin Cor… (LMT) | 100 | 131.9 | +31.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TXT vs LMT
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: LMT leads in 4 of 7 categories, making it the strongest pick for profitability and margin quality and capital preservation and lower volatility. Textron Inc. is the stronger pick specifically for growth and revenue expansion and valuation and capital efficiency. As sector peers, any of these can serve as alternatives in the same allocation.
TXT
Textron Inc.
The Growth Play
TXT is the clearest fit if your priority is growth exposure and sleep-well-at-night.
- Rev growth 8.0%, EPS growth 18.0%, 3Y rev CAGR 4.8%
- Lower volatility, beta 0.90, Low D/E 54.4%, current ratio 1.84x
- 8.0% revenue growth vs LMT's 5.7%
Best for: growth exposure and sleep-well-at-night
LMT
Lockheed Martin Corporation
The Income Pick
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%
- 156.2% 10Y total return vs TXT's 142.8%
- Beta 0.12, yield 2.6%, current ratio 1.09x
Best for: income & stability and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | TXT | 8.0% revenue growth vs LMT's 5.7% |
| Value | TXT | Lower P/E (14.2x vs 17.1x) |
| Quality / Margins | LMT | 6.4% margin vs TXT's 6.1% |
| Stability / Safety | LMT | Beta 0.12 vs TXT's 0.90 |
| Dividends | LMT | 2.6% yield, 23-year raise streak, vs TXT's 0.1% |
| Momentum (1Y) | TXT | +31.0% vs LMT's +11.6% |
| Efficiency (ROA) | LMT | 8.0% ROA vs TXT's 5.3%, ROIC 23.9% vs 9.4% |
TXT vs LMT — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
TXT vs LMT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLTXTLAGGINGLMT
LMTLockheed Martin Corpo…
1leads
TXTTextron Inc.
3leads
6 Total Categories
CATEGORYLEADERvs LMTMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
Tied
—
Valuation MetricsMultiples, price ratios, and targets
TXT5/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
TXT5/9
Total Returns1Y, 3Y, 5Y total returns with dividends
TXT4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
LMT2/2
Income & Cash Flow (Last 12 Months)
Evenly matched — TXT and LMT each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
LMT is the larger business by revenue, generating $75.1B annually — 4.9x TXT's $15.2B. Profitability is closely matched — net margins range from 6.4% (LMT) to 6.1% (TXT). On growth, TXT holds the edge at +11.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TXTTextron Inc. | LMTLockheed Martin C… |
|---|---|---|
| RevenueTrailing 12 months | $15.2B | $75.1B |
| EBITDAEarnings before interest/tax | $1.7B | $8.7B |
| Net IncomeAfter-tax profit | $934M | $4.8B |
| Free Cash FlowCash after capex | $707M | $5.7B |
| Gross MarginGross profit ÷ Revenue | +14.4% | +9.8% |
| Operating MarginEBIT ÷ Revenue | +8.4% | +9.9% |
| Net MarginNet income ÷ Revenue | +6.1% | +6.4% |
| FCF MarginFCF ÷ Revenue | +4.7% | +7.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +11.8% | +0.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +10.6% | -11.5% |
Evenly matched — TXT and LMT each lead in 3 of 6 comparable metrics.
Valuation Metrics
TXT leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 17.9x trailing earnings, TXT trades at a 25% valuation discount to LMT's 23.8x P/E. On an enterprise value basis, TXT's 11.0x EV/EBITDA is more attractive than LMT's 16.1x.
| Metric | TXTTextron Inc. | LMTLockheed Martin C… |
|---|---|---|
| Market CapShares × price | $15.9B | $118.1B |
| Enterprise ValueMkt cap + debt − cash | $18.2B | $135.7B |
| Trailing P/EPrice ÷ TTM EPS | 17.92x | 23.84x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.16x | 17.12x |
| PEG RatioP/E ÷ EPS growth rate | 0.59x | — |
| EV / EBITDAEnterprise value multiple | 11.03x | 16.07x |
| Price / SalesMarket cap ÷ Revenue | 1.08x | 1.57x |
| Price / BookPrice ÷ Book value/share | 2.10x | 17.68x |
| Price / FCFMarket cap ÷ FCF | 18.04x | 17.09x |
TXT leads this category, winning 5 of 6 comparable metrics.
Profitability & Efficiency
TXT 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 TXT. TXT carries lower financial leverage with a 0.54x debt-to-equity ratio, signaling a more conservative balance sheet compared to LMT's 3.23x. On the Piotroski fundamental quality scale (0–9), TXT scores 7/9 vs LMT's 6/9, reflecting strong financial health.
| Metric | TXTTextron Inc. | LMTLockheed Martin C… |
|---|---|---|
| ROE (TTM)Return on equity | +12.1% | +74.5% |
| ROA (TTM)Return on assets | +5.3% | +8.0% |
| ROICReturn on invested capital | +9.4% | +23.9% |
| ROCEReturn on capital employed | +9.5% | +21.3% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | 0.54x | 3.23x |
| Net DebtTotal debt minus cash | $2.3B | $17.6B |
| Cash & Equiv.Liquid assets | $2.0B | $4.1B |
| Total DebtShort + long-term debt | $4.3B | $21.7B |
| Interest CoverageEBIT ÷ Interest expense | 12.38x | 6.08x |
TXT leads this category, winning 5 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
TXT leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in LMT five years ago would be worth $14,693 today (with dividends reinvested), compared to $13,512 for TXT. Over the past 12 months, TXT leads with a +31.0% total return vs LMT's +11.6%. The 3-year compound annual growth rate (CAGR) favors TXT at 11.8% vs LMT's 6.9% — a key indicator of consistent wealth creation.
| Metric | TXTTextron Inc. | LMTLockheed Martin C… |
|---|---|---|
| YTD ReturnYear-to-date | +5.2% | +3.8% |
| 1-Year ReturnPast 12 months | +31.0% | +11.6% |
| 3-Year ReturnCumulative with dividends | +39.8% | +22.2% |
| 5-Year ReturnCumulative with dividends | +35.1% | +46.9% |
| 10-Year ReturnCumulative with dividends | +142.8% | +156.2% |
| CAGR (3Y)Annualised 3-year return | +11.8% | +6.9% |
TXT leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — TXT and LMT each lead in 1 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 TXT's 0.90 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TXT currently trades 90.2% from its 52-week high vs LMT's 74.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TXTTextron Inc. | LMTLockheed Martin C… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.90x | 0.12x |
| 52-Week HighHighest price in past year | $101.57 | $692.00 |
| 52-Week LowLowest price in past year | $69.60 | $410.11 |
| % of 52W HighCurrent price vs 52-week peak | +90.2% | +74.0% |
| RSI (14)Momentum oscillator 0–100 | 54.8 | 28.0 |
| Avg Volume (50D)Average daily shares traded | 1.3M | 1.5M |
Evenly matched — TXT and LMT each lead in 1 of 2 comparable metrics.
Analyst Outlook
LMT leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates TXT as "Hold" and LMT as "Buy". Consensus price targets imply 23.9% upside for LMT (target: $635) vs 13.3% for TXT (target: $104). For income investors, LMT offers the higher dividend yield at 2.63% vs TXT's 0.12%.
| Metric | TXTTextron Inc. | LMTLockheed Martin C… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $103.80 | $635.11 |
| # AnalystsCovering analysts | 29 | 37 |
| Dividend YieldAnnual dividend ÷ price | +0.1% | +2.6% |
| Dividend StreakConsecutive years of raises | 2 | 23 |
| Dividend / ShareAnnual DPS | $0.11 | $13.50 |
| Buyback YieldShare repurchases ÷ mkt cap | +6.8% | +2.5% |
LMT leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
TXT leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). LMT leads in 1 (Analyst Outlook). 2 tied.
Best OverallTextron Inc. (TXT)Leads 3 of 6 categories
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TXT vs LMT: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TXT or LMT a better buy right now?
For growth investors, Textron Inc.
(TXT) is the stronger pick with 8. 0% revenue growth year-over-year, versus 5. 7% for Lockheed Martin Corporation (LMT). Textron Inc. (TXT) offers the better valuation at 17. 9x trailing P/E (14. 2x 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 — TXT or LMT?
On trailing P/E, Textron Inc.
(TXT) is the cheapest at 17. 9x versus Lockheed Martin Corporation at 23. 8x. On forward P/E, Textron Inc. is actually cheaper at 14. 2x.
03Which is the better long-term investment — TXT or LMT?
Over the past 5 years, Lockheed Martin Corporation (LMT) delivered a total return of +46.
9%, compared to +35. 1% for Textron Inc. (TXT). Over 10 years, the gap is even starker: LMT returned +156. 2% versus TXT's +142. 8%. 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 — TXT or LMT?
By beta (market sensitivity over 5 years), Lockheed Martin Corporation (LMT) is the lower-risk stock at 0.
12β versus Textron Inc. 's 0. 90β — meaning TXT is approximately 628% more volatile than LMT relative to the S&P 500. On balance sheet safety, Textron Inc. (TXT) carries a lower debt/equity ratio of 54% versus 3% for Lockheed Martin Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — TXT or LMT?
By revenue growth (latest reported year), Textron Inc.
(TXT) is pulling ahead at 8. 0% versus 5. 7% for Lockheed Martin Corporation (LMT). On earnings-per-share growth, the picture is similar: Textron Inc. grew EPS 18. 0% year-over-year, compared to -3. 7% for Lockheed Martin Corporation. Over a 3-year CAGR, TXT leads at 4. 8% 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 — TXT or LMT?
Lockheed Martin Corporation (LMT) is the more profitable company, earning 6.
7% net margin versus 6. 2% for Textron 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 8. 4% for TXT. At the gross margin level — before operating expenses — TXT leads at 16. 9%, 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 TXT or LMT more undervalued right now?
On forward earnings alone, Textron Inc.
(TXT) trades at 14. 2x forward P/E versus 17. 1x for Lockheed Martin Corporation — 3. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LMT: 23. 9% to $635. 11.
08Which pays a better dividend — TXT or LMT?
All stocks in this comparison pay dividends.
Lockheed Martin Corporation (LMT) offers the highest yield at 2. 6%, versus 0. 1% for Textron Inc. (TXT).
09Is TXT 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, +156. 2% 10Y return). Both have compounded well over 10 years (LMT: +156. 2%, TXT: +142. 8%), 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 TXT 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.
In terms of investment character: TXT is a mid-cap deep-value stock; LMT is a mid-cap quality compounder stock. LMT pays a dividend while TXT does not, making them suitable for different income and tax situations. 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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Revenue Growth>
%
(TXT: 11.8% · LMT: 0.3%)Net Margin>
%
(TXT: 6.1% · LMT: 6.4%)P/E Ratio<
x
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