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Lockheed Martin Corporation (LMT) vs AT&T Inc. (T)

LMT
Lockheed Martin Corporation
$637.51
VS
T
AT&T Inc.
$27.74

Rewards

LMT
  • ★Lockheed Martin Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Lockheed Martin Corporation scores 74/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
T
  • ★Free cash flow has grown at a 16.2% CAGR over the past 4 years, demonstrating strong earnings power growth.
  • ★Each dollar of retained earnings has created $1.91 of market value — management is creating shareholder value.
  • ★FCF yield of 9.9% is historically attractive — the business generates significant cash relative to its price.

Risks

LMT
  • ⚠Gross margin of 10.2% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠Trailing P/E of 29.7x is 43% above the historical average of 20.7x — the stock trades at a premium to its own history.
  • ⚠High leverage (3.39x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
T
  • ⚠Altman Z-Score of 0.89 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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LMT
T
Valuation
$6.91B
Free Cash Flow
$19.44B
4.68%
FCF Yield
9.89%
29.68
Trailing P/E
9.13
19.94
Forward P/E
10.89
Quality & Moat
18.11%
ROIC
6.35%
74.65%
ROE
17.04%
10.24%
Gross Margin
59.55%
0.18
PEG Ratio
N/A
Balance Sheet Safety
3.39
Debt / Equity
1.24
N/A
Interest Coverage
N/A
2.25
Net Debt / EBITDA
3.19
2.12%
Dividend Yield
4.00%
LMT: 3Ties: 1T: 7
LMTT

Historical Fundamentals

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LMT

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

T

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$1 Retained Earnings Test

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LMT
$-1.60
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$8.03B
Δ Market Cap
$-12.81B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
T
$1.91
created per $1 retained over 3 years
Value Creator
Σ Retained
$22.78B
Δ Market Cap
+$43.59B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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LMT
76.4% Overvalued
Price is 76.4% above estimated fair value
Current Price: $637.51
Fair Value: $361.45
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
T
53.1% Margin of Safety
Price is 53.1% below estimated fair value
Current Price: $27.74
Fair Value: $59.14
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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LMT

What growth rate is the market pricing in at $638?

+14.6%
Market-Implied Owner Earnings Growth
Standard FCF implies +10.2%

The market implies +14.6% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +10.2%, reflecting heavy growth investment.

T

What growth rate is the market pricing in at $28?

+4.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +5.8%

The market implies +4.2% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +5.8%, reflecting heavy growth investment expected to generate future returns.

Economic Moat Score

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LMT
74/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
T
57/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with margin stability as the key competitive advantage. Improving roic consistency would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

Forensic Accounting

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LMT
-2.23
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
T
-2.78
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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LMT
Insiders 0.1%Institutions 75.2%Retail & Other 24.7%
No. of Institutional Holders3,183
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
T
Insiders 0.1%Institutions 67.8%Retail & Other 32.1%
No. of Institutional Holders3,554
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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LMT
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
T
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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LMT
3
Sells (3M)
4
Sells (12M)
Total value (12M): $10.29M
CAHILL TIMOTHY S
Officer
$3.00M
@ $649.47 · 2026-03-11
ULMER GREGORY M
Officer
$1.87M
@ $658.08 · 2026-02-27
HILL STEPHANIE C
Officer
$1.59M
@ $660.64 · 2026-02-24
ST JOHN FRANK A
Chief Operating Officer
$3.83M
@ $491.04 · 2025-10-23
HILL STEPHANIE C
Officer
$2.12M
@ $442.51 · 2025-02-26
LIGHTFOOT ROBERT M JR
Officer
$1.42M
@ $442.42 · 2025-02-26
PAUL HARRY EDWARD III
Officer
$312,923
@ $442.61 · 2025-02-26
HILL STEPHANIE C
Officer
$1.78M
@ $542.72 · 2024-08-01
CAHILL TIMOTHY S
Officer
$2.05M
@ $515.36 · 2024-07-24
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
T
0
Sells (3M)
1
Sells (12M)
Total value (12M): $41,348
SABRINA SANDERS S
Officer
$41,348
@ $27.57 · 2025-05-28
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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LMT
FearGreed
😐Neutral(60/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
T
FearGreed
😐Neutral(59/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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LMT
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (60)
T
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (59)
View LMT Full AnalysisView T Full Analysis
Lockheed Martin Corporation (LMT) vs AT&T Inc. (T) Stock Comparison | SafetyMargin.io