Contrasting Lockheed Martin Corporation (LMT) & BWX Technologies (BWXT)

BWX Technologies (NYSE: BWXT) and Lockheed Martin Corporation (NYSE:LMT) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for BWX Technologies and Lockheed Martin Corporation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BWX Technologies	0	1	4	0	2.80
Lockheed Martin Corporation	0	8	8	0	2.50

BWX Technologies currently has a consensus target price of $51.40, suggesting a potential downside of 4.18%. Lockheed Martin Corporation has a consensus target price of $290.63, suggesting a potential downside of 3.58%. Given Lockheed Martin Corporation’s higher possible upside, analysts clearly believe Lockheed Martin Corporation is more favorable than BWX Technologies.

Institutional & Insider Ownership

94.5% of BWX Technologies shares are held by institutional investors. Comparatively, 79.6% of Lockheed Martin Corporation shares are held by institutional investors. 0.8% of BWX Technologies shares are held by insiders. Comparatively, 0.4% of Lockheed Martin Corporation 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.

Dividends

BWX Technologies pays an annual dividend of $0.44 per share and has a dividend yield of 0.8%. Lockheed Martin Corporation pays an annual dividend of $7.28 per share and has a dividend yield of 2.4%. BWX Technologies pays out 23.3% of its earnings in the form of a dividend. Lockheed Martin Corporation pays out 42.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lockheed Martin Corporation has raised its dividend for 14 consecutive years. Lockheed Martin Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BWX Technologies	11.81%	107.13%	12.81%
Lockheed Martin Corporation	10.37%	221.92%	7.97%

Risk and Volatility

BWX Technologies has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Lockheed Martin Corporation has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Earnings & Valuation

This table compares BWX Technologies and Lockheed Martin Corporation’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
BWX Technologies	$1.62 billion	3.29	$322.78 million	$1.89	28.38
Lockheed Martin Corporation	$49.05 billion	1.77	$6.23 billion	$17.12	17.61

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

Summary

Lockheed Martin Corporation beats BWX Technologies on 9 of the 17 factors compared between the two stocks.

About BWX Technologies

BWX Technologies, Inc. is a manufacturer of nuclear components and a service provider. The Company’s businesses focus on the design, engineering and manufacture of precision naval nuclear components, reactors and nuclear fuel for the United States Government. Its segments include Nuclear Operations, Technical Services, Nuclear Energy and Other. It provides uranium processing and environmental site restoration services, as well as a range of products and services to customers in the nuclear power industry. Nuclear Operations engineers, designs and manufactures precision naval nuclear components and reactors for the United States Department of Energy/National Nuclear Security Administration’s Naval Nuclear Propulsion Program. Technical Services provides various services to the United States Government. Nuclear Energy designs, licenses, manufactures and delivers commercial nuclear steam generators, pressure vessels, reactor components, heat exchangers and other auxiliary equipment.

About Lockheed Martin Corporation

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.