Quick verdict: DE vs LMT in 2026

In this detailed de vs lmt stock comparison 2026, the overall edge appears to be a tie based on the sheer number of metrics won by each company. Lockheed Martin (LMT) shows clear leadership in revenue growth, valuation through a lower P/E and significant DCF upside, and also stands out as the analyst favorite. Deere & Company (DE), however, boasts superior profitability margins and a more attractive P/B ratio, alongside a higher analyst price target upside, suggesting potential for greater short-term capital appreciation. Not investment advice.

DE vs LMT: key metrics side by side

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

DE vs LMT valuation comparison

When considering the de vs lmt valuation in 2026, Lockheed Martin (LMT) appears to offer a more compelling case for value investors based on several key metrics. LMT trades at a P/E ratio of 29.04x, which is lower than Deere & Company’s (DE) P/E of 32.0x. This indicates that investors are paying slightly less for each dollar of LMT’s earnings compared to DE. Furthermore, a Discounted Cash Flow (DCF) analysis suggests a significant upside for LMT, with its current price offering a potential +39.5% increase to reach its DCF value. In contrast, DE’s DCF analysis points to a substantial overvaluation, with a negative upside of -63.6%. This stark difference in DCF outlook makes LMT the clear winner in terms of intrinsic value potential based on this model.

While LMT presents a stronger value proposition through its P/E and DCF, Deere & Company does show an advantage in its Price-to-Book (P/B) ratio, which stands at 5.86x, significantly lower than LMT’s 21.68x. This implies that DE’s stock price is less leveraged against its book value of assets. However, the high P/B for LMT could also be attributed to its asset-light business model or strong brand equity, which are not captured by book value. Overall, for investors prioritizing a lower earnings multiple and substantial DCF upside, LMT’s valuation metrics suggest it is currently the relatively cheaper stock in this de vs lmt fundamentals and valuation review.

DE vs LMT growth comparison

In the realm of growth, the de vs lmt comparison for 2026 reveals a distinct advantage for Lockheed Martin (LMT). LMT reported a year-over-year revenue growth of +5.7%, demonstrating consistent expansion in its operations. This positive momentum is crucial for investors looking for companies with increasing market presence and demand for their products and services, which in LMT’s case includes advanced defense systems, aircraft, missiles, and space technology. The defense sector often benefits from geopolitical stability and government spending, providing a predictable revenue stream.

Conversely, Deere & Company (DE) experienced a significant revenue contraction, with a reported year-over-year growth of -11.6%. This decline suggests challenges in its core markets, primarily agriculture and heavy construction equipment, which can be cyclical and sensitive to economic downturns, commodity prices, and weather patterns. Despite DE’s superior profitability margins, this negative revenue growth indicates a lack of near-term momentum compared to LMT. For growth-oriented investors, LMT clearly exhibits the stronger trajectory and more favorable market conditions. Future growth estimates, while not provided in detail here, would typically build upon these recent trends, suggesting LMT is currently the company with stronger forward momentum.

DE vs LMT profitability

When examining the profitability of DE vs LMT, Deere & Company stands out with significantly higher margins, indicating superior operational efficiency in its industrial segment. DE reported a net profit margin of 10.46%, which is substantially higher than Lockheed Martin’s (LMT) net margin of 6.68%. This suggests that for every dollar of revenue, Deere & Company retains a larger portion as profit after all expenses, including taxes, are accounted for. Furthermore, DE’s EBITDA margin of 25.08% dwarfs LMT’s 11.63%, highlighting DE’s greater efficiency at the operational level before accounting for depreciation, amortization, interest, and taxes. These robust margins demonstrate DE’s ability to control costs and command pricing power within its markets.

However, profitability is not solely defined by margins. Free Cash Flow (FCF) yield provides insight into a company’s cash-generating ability relative to its market capitalization. In this metric, LMT takes the lead with an FCF yield of 4.75%, which is considerably higher than DE’s 2.32%. This indicates that LMT generates more cash flow per dollar of market value, which is vital for reinvestment, debt reduction, and shareholder returns. While Return on Equity (ROE) data was not available for either company, the combination of DE’s strong margins and LMT’s superior FCF yield presents a nuanced picture of profitability. DE converts a higher percentage of sales into profit, but LMT’s FCF generation suggests a stronger cash flow engine relative to its size.

Analyst ratings: DE vs LMT

Turning to the analyst perspective in this de vs lmt stock comparison 2026, Lockheed Martin (LMT) garners a more favorable consensus compared to Deere & Company (DE). Of the 37 analysts covering LMT, 54.1% have a “Buy” rating, leading to a strong “Buy” consensus. Their collective price target for LMT is $632.7, which at the current price of $630.985, suggests a modest upside of +0.3%. This indicates that while analysts are confident in LMT’s business, they believe its current valuation largely reflects its fair value, with limited immediate price appreciation potential. The FMP rating for LMT is B+, further reinforcing its solid standing among financial experts.

For Deere & Company (DE), the sentiment is more cautious. Out of 46 analysts, only 39.1% recommend a “Buy,” resulting in a “Hold” consensus rating. Despite this, the average analyst target for DE is $685.17, presenting a significant potential upside of +20.2% from its current price of $569.965. This suggests that while analysts are less enthusiastic about DE’s immediate prospects or current fundamentals (perhaps due to its negative revenue growth), they see substantial room for the stock price to climb if it meets future expectations or market conditions improve. DE holds an FMP rating of B. Therefore, while analysts show a stronger preference for LMT as a “Buy,” DE offers a more attractive potential return according to their consensus price targets.

Should I buy DE or LMT stock in 2026?

Deciding whether to buy DE or LMT stock in 2026 depends heavily on an investor’s specific objectives, considering the distinct characteristics of each company revealed in our de vs lmt fundamentals and valuation analysis. For growth-oriented investors, Lockheed Martin (LMT) presents a more compelling narrative with its positive revenue growth of +5.7% year-over-year, contrasting sharply with Deere’s -11.6% decline. Operating in the relatively stable and often growing aerospace and defense sector, LMT benefits from long-term government contracts and consistent demand for advanced technologies, providing a more reliable growth trajectory.

For value investors, LMT again appears to be the more attractive option. It trades at a lower P/E ratio of 29.04x compared to DE’s 32.0x, indicating a more reasonable valuation relative to its earnings. Crucially, LMT shows a substantial DCF upside of +39.5%, suggesting it is currently undervalued based on future cash flow projections, while DE is significantly overvalued with a -63.6% DCF upside. Although DE has a much lower P/B ratio (5.86x vs 21.68x), the P/E and DCF metrics collectively suggest LMT offers a better risk-reward profile for those seeking fundamentally sound investments at a fair price. This makes the question of “should i buy de or lmt stock 2026” lean towards LMT for value.

Lastly, for income-focused investors, both DE and LMT offer very low dividend yields, with DE at 0.01% and LMT at 0.02%. While LMT’s yield is technically double DE’s, neither stock is a significant income play. Investors prioritizing dividends would likely look elsewhere. However, if forced to choose between these two based purely on dividend yield, LMT offers a marginally better income stream. Ultimately, the decision comes down to growth potential, valuation appeal, and sector outlook. This is not investment advice; investors should conduct their own thorough research.

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FAQ: DE vs LMT