LIVE
GD
General Dynamics Corporation · Industrials
$350.01
+2.90% this month
VERSUS
⟷
COMPARE
LMT
Lockheed Martin Corporation · Industrials
$510.95
-2.98% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
GD
2
LMT
3
Comparison scoreboard
LMT LEADS 3/5AI Score
GD ✓51.9
LMT 50.3
1Y Return
GD ✓+24.43%
LMT +6.59%
Fwd P/E
GD 19.84
LMT ✓16.84
Target Up.
GD +9.15%
LMT ✓+15.70%
Op. Margin
GD 10.54%
LMT ✓11.00%
Metrics last refreshed: 6/20/2026
Quick take
GD vs LMT Stock Comparison: AI Score, Valuation, Performance and Upside
General Dynamics and Lockheed Martin are both premier US defense contractors, but with different portfolio compositions. GD diversifies into commercial aerospace (Gulfstream), submarines, and IT services; Lockheed is pure defense with F-35 jets, missiles, helicopters, and space systems. Both benefit from elevated NATO defense spending, but LMT's F-35 and missile programs have more direct Ukraine/NATO beneficiary exposure.
GD vs LMT is a diversified defense-plus-commercial-aerospace compounder (General Dynamics) versus the pure-play advanced weapons systems leader with the F-35 and missile demand surge (Lockheed Martin) — GD offers Gulfstream commercial upside; LMT offers the deepest exposure to NATO rearmament through F-35 and HIMARS demand.
Live analysis · updated 6/20/2026
LMT holds the edge across 3 of 5 key metrics in this comparison. GD has delivered stronger 1-year price return (+24.43% vs +6.59%), though LMT trades at the lower forward P/E (16.84x vs 19.84x). On fundamentals, GD is growing revenue faster (10.30%), while LMT maintains the higher operating margin (11.00%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for LMT (+15.70%) than for GD (+9.15%).
Normalized 1Y performance
GD
LMT
Recent returns
GD
LMT
Analyst price targets & sentiment
GD
Price target range
analyst mean$393.17
current price$350.01
+9.1% upside to analyst mean
LMT · 22 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.3/5.0)
Price target range
analyst low$408.00
analyst high$670.00
analyst mean$625.16
current price$510.95
+15.7% upside to analyst mean
Who should consider this stock?
GD may suit investors who:
- →prefer defense diversification with Gulfstream commercial aerospace adding non-defense revenue cyclically uncorrelated with DoD budgets
- →value submarine production as a sole-source multi-decade program providing exceptional government contract revenue visibility
- →want a defense dividend grower with a more balanced portfolio across combat, naval, aviation, and IT services
- →are comfortable with Gulfstream delivery timing risk and submarine production ramp workforce challenges
LMT may suit investors who:
- →prefer the world's largest defense contractor with F-35 as the most widely deployed NATO fifth-generation fighter jet
- →value HIMARS and PAC-3 missile systems demand from Ukraine war replenishment and NATO defense spending increases
- →want the deepest pure-play advanced weapons systems exposure to elevated global defense spending from geopolitical tensions
- →are comfortable with pure government dependency (no commercial diversification) and F-35 production software complexity
Performance & AI score
| Metric | GD | LMT |
|---|---|---|
| AI score | 51.9 | 50.3 |
| AI rank | #355 | #452 |
| Latest close | $350.01 | $510.95 |
| 1M return | +2.90% | -2.98% |
| 6M return | +4.04% | +7.62% |
| 1Y return | +24.43% | +6.59% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | GD | LMT |
|---|---|---|
| 1Y ago | $12.57K (+25.7%) started 2025-06-18 | $10.9K (+9.0%) started 2025-06-18 |
| 5Y ago | $21.98K (+119.8%) started 2021-06-21 | $16.43K (+64.3%) started 2021-06-21 |
| 10Y ago | $37.75K (+277.5%) started 2016-06-20 | $34.97K (+249.7%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | GD | LMT |
|---|---|---|
| Market cap | $97.41B | $124.58B |
| Trailing P/E | 22.67 | 26.18 |
| Forward P/E | 19.84 | 16.84 |
| Price/Sales | N/A | 1.57 |
| EV/Revenue | 1.92 | 1.91 |
| Analyst target | $393.17 | $625.16 |
| Target upside | +9.15% | +15.70% |
Growth, profitability & risk
| Metric | GD | LMT |
|---|---|---|
| Revenue growth | 10.30% | 0.30% |
| Earnings growth | 12.00% | -11.50% |
| EPS growth | +12.00% | -11.50% |
| FCF margin | +9.83% | +5.31% |
| Operating margin | 10.54% | 11.00% |
| Profit margin | 8.07% | 6.38% |
| ROIC proxy | 17.97% | 67.64% |
| Return on equity | 17.97% | 67.64% |
| Dividend yield | 1.77% | 2.55% |
| Beta | 0.34 | 0.11 |
| Debt/equity | 37.70 | 276.37 |
| Current ratio | 1.38 | 1.14 |
| Quick ratio | 0.80 | 0.91 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
GD max drawdown15.23%
LMT max drawdown25.15%
GD max wkly drop6.86%
LMT max wkly drop13.30%
5Y risk snapshot
GD max drawdown22.55%
LMT max drawdown32.26%
GD max wkly drop10.82%
LMT max wkly drop13.30%
10Y risk snapshot
GD max drawdown51.63%
LMT max drawdown36.67%
GD max wkly drop19.06%
LMT max wkly drop19.06%
Performance metrics by period
| Period | Metric | GD | LMT |
|---|---|---|---|
| 1Y | Growth | +25.66% | +9.04% |
| CAGR | +25.70% | +9.05% | |
| Sharpe ratio | 0.95 | 0.29 | |
| Max drawdown | 15.23% | 25.15% | |
| Max daily drop | 4.18% | 10.81% | |
| Max wkly drop | 6.86% | 13.30% | |
| 5Y | Growth | +100.47% | +47.83% |
| CAGR | +14.95% | +8.14% | |
| Sharpe ratio | 0.56 | 0.26 | |
| Max drawdown | 22.55% | 32.26% | |
| Max daily drop | 7.27% | 11.80% | |
| Max wkly drop | 10.82% | 13.30% | |
| 10Y | Growth | +203.30% | +169.76% |
| CAGR | +11.74% | +10.44% | |
| Sharpe ratio | 0.40 | 0.35 | |
| Max drawdown | 51.63% | 36.67% | |
| Max daily drop | 10.93% | 12.76% | |
| Max wkly drop | 19.06% | 19.06% |
Business comparison
| Category | GD | LMT |
|---|---|---|
| Company | General Dynamics Corporation | Lockheed Martin Corporation |
| Sector | Industrials | Industrials |
| Industry | N/A | Aerospace & Defense |
| Core business | General Dynamics is a diversified defense and aerospace company with four segments: Aerospace (Gulfstream business jets), Combat Systems (Abrams tanks, wheeled vehicles, munitions), Marine Systems (Virginia-class submarines, DDG destroyers), and Technologies (IT services and cybersecurity for the US government). The diversification into Gulfstream private jets gives GD commercial aerospace exposure not present in pure defense peers. Marine Systems is the largest builder of US Navy nuclear submarines. | Lockheed Martin is the world's largest defense contractor, primarily focused on advanced weapon systems — F-35 fighter jets (the largest defense program in history), missiles and fire control (PAC-3, HIMARS), rotary and mission systems (Black Hawk, Sikorsky helicopters), and space systems (satellite constellations, classified programs). The F-35 program alone generates ~$15B annually. NATO partner countries purchasing F-35 jets and the Ukraine-driven demand for missiles and fire control systems have boosted Lockheed's recent backlog. |
| Investor focus | Investors track Gulfstream aircraft deliveries and backlog, submarine production rate (Virginia-class ramp is a multi-decade program), combat systems demand from NATO defense spending increases, and the Technologies IT services revenue. | Investors track F-35 production rate and international sales, missile and fire control backlog (HIMARS demand from Ukraine conflict and NATO allies), Sikorsky helicopter deliveries, and dividend sustainability from consistent government contracts. |
GD strengths
- →Virginia-class nuclear submarine program is a sole-source, multi-decade US Navy contract providing exceptional revenue visibility
- →Gulfstream business jet market exposure provides commercial upside from high-net-worth and corporate aircraft demand cycles
- →Strong balance sheet and consistent free cash flow from diverse government contracting supports reliable dividend growth
LMT strengths
- →F-35 is the largest single defense program in history — deeply embedded in NATO air forces for decades with multi-decade production and sustainment tail
- →HIMARS and PAC-3 missile demand has surged from Ukraine war replenishment and NATO member defense spending increases
- →Space systems segment including satellite and classified programs provides long-term national security relevance
Risks to watch — GD
- →Gulfstream production delays and labor challenges have affected aircraft delivery timelines, impacting revenue recognition
- →Submarine production ramp requires skilled workforce expansion — shipbuilding labor shortages are an industry-wide challenge
- →Technologies segment faces IT services competition from major defense IT contractors and large commercial cloud providers
Risks to watch — LMT
- →F-35 production software and maintenance challenges have created periodic program delivery delays and cost overruns
- →DoD budget pressure could result in reduced F-35 procurement in future years as other platforms compete for budget
- →No commercial aerospace diversification — Lockheed's earnings are entirely dependent on US government and allied nation defense spending
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