Lockheed Martin (NYSE: LMT) and Axon Enterprise (NASDAQ:AAXN) are both aerospace companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Dividends

Lockheed Martin pays an annual dividend of $8.00 per share and has a dividend yield of 2.5%. Axon Enterprise does not pay a dividend. Lockheed Martin pays out 64.4% of its earnings in the form of a dividend. Lockheed Martin has raised its dividend for 14 consecutive years.

Valuation & Earnings

This table compares Lockheed Martin and Axon Enterprise’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lockheed Martin $47.25 billion 1.93 $5.30 billion $12.43 25.59
Axon Enterprise $268.24 million 5.22 $17.29 million $0.26 101.70

Lockheed Martin has higher revenue and earnings than Axon Enterprise. Lockheed Martin is trading at a lower price-to-earnings ratio than Axon Enterprise, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Lockheed Martin has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Axon Enterprise has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Lockheed Martin and Axon Enterprise, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lockheed Martin 0 4 8 0 2.67
Axon Enterprise 0 3 3 0 2.50

Lockheed Martin currently has a consensus target price of $322.83, indicating a potential upside of 1.51%. Axon Enterprise has a consensus target price of $30.00, indicating a potential upside of 13.46%. Given Axon Enterprise’s higher possible upside, analysts clearly believe Axon Enterprise is more favorable than Lockheed Martin.

Profitability

This table compares Lockheed Martin and Axon Enterprise’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lockheed Martin 7.31% 221.41% 7.65%
Axon Enterprise 4.32% 7.91% 4.13%

Insider and Institutional Ownership

78.8% of Lockheed Martin shares are held by institutional investors. Comparatively, 95.7% of Axon Enterprise shares are held by institutional investors. 0.4% of Lockheed Martin shares are held by company insiders. Comparatively, 3.9% of Axon Enterprise shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Lockheed Martin beats Axon Enterprise on 10 of the 17 factors compared between the two stocks.

Lockheed Martin Company Profile

Lockheed Martin Corporation is a security and aerospace company. The Company operates through four segments. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies. Missiles and Fire Control segment provides air and missile defense systems; fire control systems; manned and unmanned ground vehicles, and energy management solutions. Rotary and Mission Systems segment provides design, manufacture, service and support for a range of military and civil helicopters; mission systems and sensors for rotary and fixed-wing aircraft; simulation and training services, and unmanned systems and technologies, among others. Space Systems segment is engaged in the research and development, design, engineering and production of satellites, strategic and defensive missile systems and space transportation systems.

Axon Enterprise Company Profile

Axon Enterprise, Inc., formerly TASER International, Inc., is engaged in development, manufacture and sale of conducted electrical weapons (CEWs) for use by law enforcement, military, corrections and private security personnel, and by private individuals for personal defense. It is also engaged in development of connected wearable on-officer cameras. It operates through two segments: the sale of CEWs, accessories, and other related products and services (the TASER Weapons segment), and the Axon business, focused on devices, wearables, applications, cloud and mobile products (the Axon segment). Its TASER Weapons product line includes TASER X26P, TASER X2, TASER C2, TASER Pulse and Replacement Cartridges. Its hardware products include Axon Body 2, Axon Flex, Axon Fleet, Axon Interview, Axon Signal and Axon Dock. Its Axon software and mobile technologies include Evidence.com, Evidence.com for Prosecutors, Evidence Sync, Axon Capture, Axon View, Axon Five, Axon Convert and Axon Detect.

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