Lockheed Martin (LMT) and Howmet Aerospace (HWM) are both thriving in the defense sector, with their stock prices up approximately 21% to 25% year-to-date as of April 16, driven by increased defense spending linked to the ongoing conflict in Iran. Lockheed, a major player in defense and aerospace, benefits from a robust backlog and diverse product offerings, while Howmet specializes in critical components for aerospace and defense applications, showing significant growth potential.
Howmet reported a record revenue of $8.3 billion in 2025, with a 32% increase in earnings per share, and projects continued growth amid rising demand for its parts. However, its high valuation—trading at over 54 times forward earnings—suggests that much of its growth is already priced in. In contrast, Lockheed’s stable cash flow and substantial backlog position it well for sustained performance, with forecasts indicating a revenue increase to between $77.5 billion and $80 billion in 2026.
For investors, Lockheed Martin emerges as the more attractive option, combining steady income through dividends and a diversified portfolio, making it better suited to weather market fluctuations compared to Howmet’s growth-focused profile.
Source: fool.com