Quick verdict: BA vs LMT in 2026

Lockheed Martin (LMT) demonstrates a more robust financial profile, holding the overall edge in this stock comparison with superior profitability and more attractive valuation metrics. Boeing (BA) stands out as the growth leader with significantly higher revenue growth, while LMT leads convincingly in margins and valuation. Despite LMT’s fundamental strength, BA is the analyst favorite, commanding a higher percentage of “Buy” ratings and a considerably larger potential upside based on analyst price targets. Not investment advice.

BA vs LMT: key metrics side by side

Full side-by-side comparison of BA and LMT across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-07.

BA vs LMT valuation comparison

When assessing the BA vs LMT valuation, Lockheed Martin (LMT) presents a significantly more appealing picture. LMT trades at a P/E ratio of 29.09x, which is considerably lower than Boeing’s (BA) P/E of 71.39x. This indicates that investors are paying substantially more for each dollar of Boeing’s earnings compared to Lockheed Martin’s, suggesting BA is richly valued, especially given its current profitability challenges. Similarly, on a price-to-book basis, LMT at 21.72x is also cheaper than BA at 29.26x, reinforcing its relative value.

Further solidifying LMT’s valuation advantage is its discounted cash flow (DCF) analysis, which suggests a positive upside of 39.2%. In stark contrast, BA’s DCF indicates a negative upside of -343.5%, implying that its current stock price is dramatically overvalued relative to its future cash flow projections. This substantial difference in DCF outlook, combined with LMT’s “B+” FMP rating compared to BA’s “C+”, underscores Lockheed Martin’s stronger financial health and more attractive valuation metrics as of 2026-04-07.

BA vs LMT growth comparison

In terms of growth, The Boeing Company (BA) clearly exhibits stronger momentum, reporting a year-over-year revenue growth of an impressive 34.5%. This substantially outperforms Lockheed Martin (LMT), which posted a more modest revenue growth of 5.7% over the same period. BA’s robust growth figure suggests a significant recovery or expansion phase, potentially driven by new orders, production ramps, or a rebound in commercial aerospace demand.

While BA’s revenue growth is compelling, it’s important to contextualize this against its profitability, which lags LMT. High revenue growth can sometimes mask underlying operational inefficiencies or significant investments, which might be reflected in BA’s lower margins. LMT, with its steady 5.7% growth, demonstrates consistent performance characteristic of a mature defense contractor. Investors focused purely on top-line expansion and market share gains might find BA’s growth trajectory more appealing, albeit with higher inherent risks and valuation premiums.

BA vs LMT profitability

When it comes to profitability, Lockheed Martin (LMT) significantly outperforms The Boeing Company (BA). LMT boasts a healthy net margin of 6.68% and an EBITDA margin of 11.63%. These figures indicate efficient operations and strong control over costs, allowing LMT to translate a larger portion of its revenue into profit. In contrast, BA’s net margin stands at a much lower 2.5%, and its EBITDA margin is 8.23%, suggesting ongoing operational challenges or thinner profit margins in its current business environment.

Further illustrating LMT’s superior financial health is its Free Cash Flow (FCF) yield of 4.74%, demonstrating its ability to generate substantial cash from its operations after accounting for capital expenditures. Boeing, however, presents a concerning FCF yield of -1.15%, indicating that it is currently consuming more cash than it generates. This negative free cash flow is a significant red flag for profitability and financial stability. Both companies currently report N/A% for Return on Equity (ROE), preventing a direct comparison on this specific metric, but LMT’s clear advantage in net margin, EBITDA margin, and FCF yield underscores its stronger cash generation and overall profitability.

Analyst ratings: BA vs LMT

The analyst community shows a generally positive outlook for both industrial giants, with both BA and LMT receiving a consensus “Buy” rating. However, a deeper dive into the specifics reveals a preference for The Boeing Company (BA) in terms of buy conviction and potential upside. Of the 54 analysts covering BA, a substantial 66.7% recommend it as a “Buy.” This strong endorsement suggests confidence in BA’s long-term recovery and growth prospects among a larger pool of analysts.

For Lockheed Martin (LMT), 37 analysts cover the stock, with 54.1% giving it a “Buy” rating. While still a positive sentiment, it is less emphatic than BA’s. Furthermore, analysts project a considerably higher price target upside for BA, with a consensus target of $260.36, representing a potential +25.3% increase from its current price. LMT’s consensus target, $632.7, suggests a minimal upside of just +0.1%, indicating analysts believe LMT is currently trading very close to its fair value. This stark difference in target price upside makes BA the clear analyst favorite for potential short-to-medium term capital appreciation.

Should I buy BA or LMT stock in 2026?

Deciding whether to buy BA or LMT stock in 2026 depends heavily on your investment strategy and risk tolerance. For growth-oriented investors, The Boeing Company (BA) might appear more attractive due to its impressive 34.5% year-over-year revenue growth. This significant top-line expansion indicates a strong recovery trajectory or robust market demand for its products. However, investors should be mindful of BA’s current profitability challenges, including a low net margin of 2.5% and negative free cash flow yield, which introduce higher risk despite the growth potential.

For value investors seeking a more stable and fundamentally sound investment, Lockheed Martin (LMT) presents a compelling case. LMT trades at a more reasonable P/E ratio of 29.09x and P/B ratio of 21.72x compared to BA’s elevated multiples. Its DCF analysis also points to a positive upside of 39.2%, suggesting it is currently undervalued. Furthermore, LMT boasts superior profitability with a net margin of 6.68% and a positive FCF yield of 4.74%, translating into stronger cash generation and financial health.

When considering income, LMT offers a modest dividend yield of 0.02%, providing a slight income stream, whereas BA currently yields 0%. This makes LMT the better choice for investors prioritizing even a minimal dividend. Ultimately, your choice between BA and LMT stock in 2026 hinges on whether you prioritize BA’s higher growth potential and analyst-projected upside at a higher risk and valuation, or LMT’s superior fundamentals, profitability, and more attractive valuation for a potentially more stable long-term investment. This is not investment advice.

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