Reviewing RocketLab (NASDAQ:RKLB) and Lockheed Martin (NYSE:LMT)

RocketLab (NASDAQ:RKLB) and Lockheed Martin (NYSE:LMT) are both aerospace companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for RocketLab and Lockheed Martin, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RocketLab 0 1 3 0 2.75
Lockheed Martin 0 7 1 0 2.13

RocketLab presently has a consensus target price of 22.00, suggesting a potential upside of 63.20%. Lockheed Martin has a consensus target price of $396.03, suggesting a potential upside of 9.21%. Given RocketLab’s stronger consensus rating and higher possible upside, equities research analysts clearly believe RocketLab is more favorable than Lockheed Martin.

Profitability

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

Net Margins Return on Equity Return on Assets
RocketLab N/A N/A N/A
Lockheed Martin 10.69% 123.35% 14.37%

Valuation & Earnings

This table compares RocketLab and Lockheed Martin’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RocketLab N/A N/A -$12.34 million N/A N/A
Lockheed Martin $65.40 billion 1.53 $6.83 billion $24.84 14.59

Lockheed Martin has higher revenue and earnings than RocketLab.

Insider & Institutional Ownership

30.5% of RocketLab shares are held by institutional investors. Comparatively, 74.5% of Lockheed Martin shares are held by institutional investors. 0.2% of Lockheed Martin shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Lockheed Martin beats RocketLab on 7 of the 10 factors compared between the two stocks.

RocketLab Company Profile

Rocket Lab and Vector entered into a definitive merger agreement.

Lockheed Martin Company Profile

Lockheed Martin Corp. operates as a global security and aerospace company, which engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services. It operates through the following business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. The Aeronautics segment researches, designs, develops, manufactures, integrates, sustains, supports, and upgrades advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. The MFC segment provides air and missile defence systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support and integration services; manned and unmanned ground vehicles; and energy management solutions. The RMS segment offers design, manufacture, service, and support for a variety of military and commercial helicopters; ship and submarine mission and combat systems; mission systems and sensors for rotary and fixed-wing aircraft; sea and land-based missile defence systems; radar systems; th

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