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GE vs LMT

GE
GE Aerospace
NEUTRAL
Price
$303.60
Market Cap
$320.24B
Sector
Industrials
AI Confidence
85%
LMT
Lockheed Martin Corporation
NEUTRAL
Price
$555.43
Market Cap
$128.01B
Sector
Industrials
AI Confidence
80%

Valuation

P/E Ratio
GE
37.71
LMT
25.83
Forward P/E
GE
35.2
LMT
17.34
P/B Ratio
GE
17.05
LMT
18.93
P/S Ratio
GE
6.98
LMT
1.71
EV/EBITDA
GE
30.66
LMT
17.68

Profitability

Gross Margin
GE
31.5%
LMT
10.24%
Operating Margin
GE
19.55%
LMT
9.01%
Profit Margin
GE
18.98%
LMT
6.69%
ROE
GE
44.69%
LMT
76.87%
ROA
GE
4.68%
LMT
7.57%

Growth

Revenue Growth
GE
17.6%
LMT
9.1%
Earnings Growth
GE
37.4%
LMT
161.0%

Financial Health

Debt/Equity
GE
1.14
LMT
3.39
Current Ratio
GE
1.04
LMT
1.09
Quick Ratio
GE
0.69
LMT
0.9

Dividends

Dividend Yield
GE
0.62%
LMT
2.43%
Payout Ratio
GE
17.89%
LMT
62.12%

AI Verdict

GE NEUTRAL

GE Aerospace exhibits a stark divergence between its operational growth and its deterministic financial health, highlighted by a weak Piotroski F-Score of 3/9. While the company delivers impressive earnings growth (37.4% YoY) and high ROE (44.69%), it trades at a significant premium to both its Graham Number ($56.79) and Intrinsic Value ($237.48). The valuation is stretched with a PEG ratio of 5.24, suggesting that current price levels have priced in aggressive future success. Despite strong analyst 'strong_buy' recommendations, the combination of poor deterministic health and bearish insider activity warrants a cautious approach.

Strengths
Exceptional Return on Equity (ROE) of 44.69%
Strong earnings track record with consistent beats and high average surprise (25.12%)
Robust revenue growth (17.6% YoY) and earnings growth (37.4% YoY)
Risks
Weak deterministic health indicated by a Piotroski F-Score of 3/9
Extreme valuation metrics, specifically a PEG ratio of 5.24 and P/B of 17.05
Tight liquidity position with a Quick Ratio of 0.69
LMT NEUTRAL

LMT presents a stable financial profile with a Piotroski F-Score of 6/9 and an intrinsic value of $634.25, suggesting the stock is currently undervalued relative to its growth potential. However, this fundamental strength is countered by a bearish technical trend (0/100) and negative insider sentiment. While the forward P/E of 17.34 is attractive, recent extreme volatility in quarterly earnings—specifically a massive miss in July 2025—introduces significant short-term risk. The company remains a powerhouse in the defense sector with an exceptional ROE of 76.87%, but high leverage (Debt/Equity 3.39) warrants caution.

Strengths
Exceptional Return on Equity (ROE) of 76.87%
Current price ($555.43) is well below the growth-based intrinsic value ($634.25)
Attractive Forward P/E ratio of 17.34 compared to trailing P/E of 25.83
Risks
High leverage with a Debt/Equity ratio of 3.39
Bearish insider activity with multiple officer sales and zero buys
Severe short-term technical weakness (Technical Trend: 0/100)

Compare Another Pair

GE vs LMT: Head-to-Head Comparison

This page compares GE Aerospace (GE) and Lockheed Martin Corporation (LMT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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