Which Defense Giant Shows Stronger Momentum Today - LMT or RTX?

Rising global defense budgets and the push for modern military systems continue to fuel demand for advanced technologies, benefiting major contractors like RTX Corp. RTX and Lockheed Martin Corp. LMT. Both companies enjoy large backlogs from government programs, giving them steady revenue visibility and strong long-term growth prospects.

RTX stands out with its broad product base, covering commercial jet engines, avionics, space sensors, military radars and Satcom systems. In contrast, Lockheed Martin is known for leading defense platforms such as the F-35 fighter jet, Patriot and THAAD missile systems, littoral combat ships, and advanced space assets like the Orion spacecraft.

With defense spending increasing worldwide and geopolitical tensions rising, both companies are well-positioned for continued growth. However, deciding which stock is stronger right now depends on comparing their individual strengths.

Tailwinds for LMT

LMT is supported by its strong quarterly results, strategic partnerships and notable contract wins, which have helped sustain investor confidence. In October, the company reported its third-quarter 2025 results, showing revenue growth of 8.8% and a 2.2% rise in net earnings compared with the same period last year.

In November 2025, LMT received a contract from the Ceská Letecká Servisní (CLS) and the Czech Republic Ministry of Interior for two new Sikorsky S-70 FIREHAWK helicopters.

In the same month, LMT signed a Memorandum of Understanding with Diehl Defence to explore the expansion of integrated air and missile defense (IAMD) capability to its partner nations around the world.

Moreover, LMT also formed a strategic collaboration with PsiQuantum to advance quantum computing research and applications for aerospace and defense. This agreement marks an important step toward exploring how quantum computing can help address complex national security and aerospace challenges. It also supports the development of large-scale, fault-tolerant quantum hardware designed to deliver reliable results for critical missions.

Tailwinds for RTX

RTX is also supported by its strong quarterly results, strategic collaborations and some notable contract wins, which together contributed to investors’ optimism. The company released its third-quarter 2025 results in October, wherein it reported solid revenue growth of 11.9%. The bottom line also improved 17.2% from the year-ago quarter.

In November 2025, RTX’s Collins Aerospace and the Royal Netherlands Air and Space Force (RNLASF) have signed a contract to build a new military avionics service center in the Netherlands to support European F-35 and CH-47F fleet.

In the same month, RTX revealed that its Collins Aerospace and Emirates have expanded their comprehensive long-term agreement for maintenance, repair and overhaul services on the main landing gears for Emirates’ A380 fleet.

Moreover, RTX has been selected by Qatar Airways to provide its Ascentia analytics solution to its fleet of 52 Boeing 787 aircraft.

How Does the Zacks Consensus Estimate Compare for LMT & RTX?

The Zacks Consensus Estimate for Lockheed Martin’s 2025 sales implies a year-over-year rise of 4.7%, and the same for earnings suggests a decline of 22%. The stock’s annual bottom-line estimates have moved north over the past 60 days.

The Zacks Consensus Estimate for RTX’s 2025 sales and earnings per share (EPS) implies an improvement of 7.8% and 7.9%, respectively, from the year-ago quarter’s reported figures. RTX’s 2025 and 2026 EPS estimates have moved north over the past 60 days.

Stock Price Performance: LMT & RTX

In the past year, RTX has outperformed LMT. While RTX’s shares surged 43%, LMT went down 14%.

Lockheed Martin’s Valuation More Attractive Than RTX

Lockheed Martin is trading at a forward earnings multiple (P/E F12M) of 15.32, below RTX’s forward earnings multiple of 25.76. When compared with their respective five-year median, RTX’s forward earnings multiple looks a bit stretched.

Debt Performance: LMT & RTX

LMT is highly debt-ridden when compared with RTX as evident from the image below, which reflects its total debt-to-capital ratio. LMT has a total debt-to-capital ratio of 78.21, while RTX has a total debt-to-capital ratio of 37.05.

Final Call

With strong global defense spending, both Lockheed Martin and RTX remain well-positioned. While Lockheed Martin benefits from leading defense programs, its higher debt levels and weaker stock performance limit its near-term appeal.

RTX, on the other hand, offers a balanced mix of commercial and defense exposure, improving earnings expectations and stronger contract momentum. It also carries much lower debt and has clearly outperformed Lockheed Martin over the past year.

Both RTX and LMT carry a Zacks Rank #3 (Hold), but given RTX’s healthier balance sheet and better recent share performance, it stands out as the stronger choice right now.

You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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