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Lockheed Martin Corporation (LMT) vs Lowe's Companies, Inc. (LOW)

LMT
Lockheed Martin Corporation
$637.51
VS
LOW
Lowe's Companies, Inc.
$229.71

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.
LOW
  • ★Lowe's Companies, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Lowe's Companies, Inc. scores 84/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
  • ★Share count has been reduced by 16% over the past 5 years through buybacks, increasing each share's claim on earnings.

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.
LOW
  • ⚠Each dollar of retained earnings has produced only $0.11 of market value — shareholders may have been better served by dividends.
  • ⚠Insiders have sold $7.4M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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LMT
LOW
Valuation
$6.91B
Free Cash Flow
$5.40B
4.68%
FCF Yield
4.19%
29.68
Trailing P/E
19.38
19.94
Forward P/E
16.79
Quality & Moat
18.11%
ROIC
12.66%
74.65%
ROE
N/A
10.24%
Gross Margin
33.48%
0.18
PEG Ratio
N/A
Balance Sheet Safety
3.39
Debt / Equity
N/A
N/A
Interest Coverage
N/A
2.25
Net Debt / EBITDA
3.51
2.12%
Dividend Yield
2.09%
LMT: 4Ties: 2LOW: 3
LMTLOW

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.

LOW

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
LOW
$0.11
created per $1 retained over 3 years
Value Destroyer
Σ Retained
$13.65B
Δ Market Cap
+$1.56B
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
LOW
67.1% Overvalued
Price is 67.1% above estimated fair value
Current Price: $229.71
Fair Value: $137.43
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.

LOW

What growth rate is the market pricing in at $230?

+14.1%
Market-Implied FCF Growth Rate

Market pricing in significantly higher growth than history — aggressive.

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.
LOW
84/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 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.
LOW
-2.80
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.
LOW
Insiders 0.1%Institutions 80.7%Retail & Other 19.2%
No. of Institutional Holders3,354
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
LOW
0
Buys (3M)
1
Buys (12M)
Total value (12M): $231,063
SIMKINS LAWRENCE
Director
$231,063
@ $231.06 · 2025-11-24
SIMKINS LAWRENCE
Director
$245,532
@ $245.53 · 2024-12-20
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
LOW
2
Sells (3M)
8
Sells (12M)
Total value (12M): $32.92M
VANCE QUONTA D
Officer
$2.67M
@ $257.54 · 2026-03-04
ELLISON MARVIN R
Chief Executive Officer
$4.70M
@ $261.17 · 2026-01-09
MCFARLAND JOSEPH MICHAEL III
Officer
$11.94M
@ $272.60 · 2025-09-11
SINK BRANDON J.
Chief Financial Officer
$2.20M
@ $268.58 · 2025-09-05
PRYOR JULIETTE WILLIAMS
Officer
$238,939
@ $257.20 · 2025-08-26
ELLISON MARVIN R
Chief Executive Officer
$10.56M
@ $264.10 · 2025-08-20
DUPRE JANICE M.
Officer
$350,039
@ $224.38 · 2025-06-10
PRYOR JULIETTE WILLIAMS
Officer
$257,077
@ $227.50 · 2025-06-03
VANCE QUONTA D
Officer
$1.97M
@ $274.37 · 2024-11-27
MCFARLAND JOSEPH MICHAEL III
Officer
$1.08M
@ $270.74 · 2024-10-03
GODBOLE SEEMANTINI P
Chief Technology Officer
$7.12M
@ $271.73 · 2024-10-03
VAGELL MARGRETHE R
Officer
$1.56M
@ $271.45 · 2024-10-02
GRIGGS DAN CLAYTON JR.
Officer
$1.68M
@ $248.82 · 2024-09-12
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.
LOW
FearGreed
😨Fear(38/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

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)
LOW
⚪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: Fear (38)
View LMT Full AnalysisView LOW Full Analysis
Lockheed Martin Corporation (LMT) vs Lowe's Companies, Inc. (LOW) Stock Comparison | SafetyMargin.io