Lockheed Martin (LMT) Vs. Raytheon Technologies (RTX)
Lockheed is the largest defense contractor in the world and makes up roughly 30% of the US’s total military spending. Lockheed has little operational exposure to the economic and social disarray due to its contracted nature. LMT management is maintaining its earnings guidance for 2020.
The market catalyzed an LMT share price slide, creating an excellent buying opportunity for savvy investors. LMT is still 12.5% off its all-time highs, and 7 out of 10 analysts are calling this stock a strong buy.
Raytheon’s recent merger with United Technologies solidified its #2 spot on the list of largest defense contractors. Raytheon Technology presents more risk but a potentially larger upside.
RTX is more exposed to the downturn because of its sizable consumer segments. Despite the risk, RTX is a relatively safe way to invest in aerospace’s recovery. Its substantial defense portfolio will continue to drive growth alongside its recovering commercial business.
The average price target is $92 representing a 43% upside from the $64 per share RTX is trading at today.
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