EADSY - Raytheon Vs. Lockheed Martin: Which Stock Is The Better Buy?

• As the #1 and #2 defense contractors on the BGOV 200 List, Lockheed and Raytheon compete for large projects but cooperate when components are outsourced.
• The major difference is that Lockheed is a pure defense company while Raytheon is about 35% in commercial aviation; their 1-year and long-term results are similar.
• Defense is a portfolio diversifier; its results are steady and aren't troubled greatly by either inflation and/or recession; they will benefit from weapons backfills resulting from the Russia/Ukraine war.
• Raytheon has a higher Quant Ranking but Lockheed has steadier long-term growth, lower P/E, and more certain prospects with likely 10% long-term total return.
• Lockheed has a 15 P/E ratio, 2.7% yield, 2% annual buybacks to Raytheon's 19 P/E, 2.4% yield, and uncertain buybacks.

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