Lockheed Martin (LMT) versus Aerojet Rocketdyne (AJRD) Critical Comparison

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


Lockheed Martin pays an annual dividend of $8.00 per share and has a dividend yield of 2.4%. Aerojet Rocketdyne does not pay a dividend. Lockheed Martin pays out 60.0% of its earnings in the form of a dividend. Lockheed Martin has increased its dividend for 15 consecutive years.

Institutional and Insider Ownership

78.5% of Lockheed Martin shares are held by institutional investors. Comparatively, 97.8% of Aerojet Rocketdyne shares are held by institutional investors. 0.4% of Lockheed Martin shares are held by insiders. Comparatively, 3.2% of Aerojet Rocketdyne shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Lockheed Martin has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Aerojet Rocketdyne has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.


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

Net Margins Return on Equity Return on Assets
Lockheed Martin 3.92% 354.55% 8.27%
Aerojet Rocketdyne -0.49% 47.43% 2.44%

Earnings & Valuation

This table compares Lockheed Martin and Aerojet Rocketdyne’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lockheed Martin $51.05 billion 1.90 $2.00 billion $13.33 25.46
Aerojet Rocketdyne $1.88 billion 1.16 -$9.20 million $0.74 39.16

Lockheed Martin has higher revenue and earnings than Aerojet Rocketdyne. Lockheed Martin is trading at a lower price-to-earnings ratio than Aerojet Rocketdyne, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Lockheed Martin and Aerojet Rocketdyne, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lockheed Martin 0 7 8 0 2.53
Aerojet Rocketdyne 0 1 2 0 2.67

Lockheed Martin presently has a consensus price target of $378.00, indicating a potential upside of 11.36%. Aerojet Rocketdyne has a consensus price target of $37.50, indicating a potential upside of 29.40%. Given Aerojet Rocketdyne’s stronger consensus rating and higher probable upside, analysts clearly believe Aerojet Rocketdyne is more favorable than Lockheed Martin.


Lockheed Martin beats Aerojet Rocketdyne on 10 of the 17 factors compared between the two stocks.

About Lockheed Martin

Lockheed Martin Corporation is a security and aerospace company. The Company operates through four segments. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Missiles and Fire Control segment provides air and missile defense systems; fire control systems; manned and unmanned ground vehicles, and energy management solutions. Rotary and Mission Systems segment provides design, manufacture, service and support for a range of military and civil helicopters; mission systems and sensors for rotary and fixed-wing aircraft; simulation and training services, and unmanned systems and technologies, among others. Space Systems segment is engaged in the research and development, design, engineering and production of satellites, strategic and defensive missile systems and space transportation systems.

About Aerojet Rocketdyne

Aerojet Rocketdyne Holdings, Inc. designs, develops, manufactures, and sells aerospace and defense products and systems in the United States. The company operates through two segments, Aerospace and Defense, and Real Estate. The Aerospace and Defense segment offers aerospace and defense products and systems for the United States government, including the Department of Defense, the National Aeronautics and Space Administration, and aerospace and defense prime contractors. This segment provides propulsion systems, such as liquid, solid, air-breathing, and electric propulsion systems for space, defense, civil, and commercial applications; and armament systems for precision tactical and missile defense propulsion, tactical missile propulsion, and hypersonic propulsion systems. The Real Estate segment engages in the re-zoning, entitlement, sale, and leasing of the company's excess real estate assets. It owns 11,451 acres of land adjacent to the United States Highway 50 between Rancho Cordova and Folsom, California east of Sacramento. The company was formerly known as GenCorp Inc. and changed its name to Aerojet Rocketdyne Holdings, Inc. in April 2015. Aerojet Rocketdyne Holdings, Inc. was founded in 1915 and is headquartered in El Segundo, California.

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