DEO vs. LMT
DEO (Diageo plc) and LMT (Lockheed Martin Corporation) are both stocks. DEO operates in Beverages - Wineries & Distilleries (Consumer Defensive), while LMT operates in Aerospace & Defense (Industrials). Over the past 10 years, DEO returned 0.50%/yr vs 11.37%/yr for LMT. At a 0.21 correlation, their price movements are largely independent.
Performance
DEO vs. LMT - Performance Comparison
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Returns By Period
In the year-to-date period, DEO achieves a -4.24% return, which is significantly lower than LMT's 13.04% return. Over the past 10 years, DEO has underperformed LMT with an annualized return of 0.50%, while LMT has yielded a comparatively higher 11.37% annualized return.
DEO
- 1D
- 0.83%
- 1M
- 0.12%
- YTD
- -4.24%
- 6M
- -7.27%
- 1Y
- -19.48%
- 3Y*
- -19.42%
- 5Y*
- -13.55%
- 10Y*
- 0.50%
LMT
- 1D
- -1.52%
- 1M
- 5.40%
- YTD
- 13.04%
- 6M
- 13.84%
- 1Y
- 14.07%
- 3Y*
- 8.98%
- 5Y*
- 9.78%
- 10Y*
- 11.37%
DEO vs. LMT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
DEO Diageo plc | -4.24% | -29.31% | -10.09% | -16.28% | -17.40% | 41.72% | -3.26% | 21.39% | -0.43% | 44.13% |
LMT Lockheed Martin Corporation | 13.04% | 2.47% | 10.02% | -4.31% | 40.48% | 3.15% | -6.49% | 52.55% | -16.35% | 31.77% |
Correlation
The correlation between DEO and LMT is 0.06, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.06 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.13 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.14 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.22 |
Correlation (All Time) Calculated using the full available price history since May 13, 1996 | 0.21 |
The correlation between DEO and LMT shifts across timeframes, from 0.06 (1 year) to 0.22 (10 years), reflecting how their relationship changes across market environments.
Fundamentals
DEO:
$45.62B
LMT:
$124.87B
DEO:
£9.85
LMT:
$20.61
DEO:
6.19
LMT:
26.21
DEO:
0.91
LMT:
1.67
DEO:
3.95
LMT:
16.67
DEO:
£37.37B
LMT:
$75.12B
DEO:
£22.42B
LMT:
$7.37B
DEO:
£10.72B
LMT:
$8.09B
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Return for Risk
DEO vs. LMT — Risk / Return Rank
DEO
LMT
DEO vs. LMT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Diageo plc (DEO) and Lockheed Martin Corporation (LMT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| DEO | LMT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.34 | ||
| Sortino ratioReturn per unit of downside risk | -1.80 | ||
| Omega ratioGain probability vs. loss probability | 0.90 | 1.14 | -0.24 |
| Calmar ratioReturn relative to maximum drawdown | -0.59 | 0.73 | -1.32 |
| Martin ratioReturn relative to average drawdown | -1.05 | 1.69 | -2.75 |
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Drawdowns
DEO vs. LMT - Drawdown Comparison
The maximum DEO drawdown since its inception was -63.41%, smaller than the maximum LMT drawdown of -79.29%. Use the drawdown chart below to compare losses from any high point for DEO and LMT.
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Drawdown Indicators
| DEO | LMT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -63.41% | -79.29% | +15.88% |
Max Drawdown (1Y)Largest decline over 1 year | -35.52% | -25.15% | -10.37% |
Max Drawdown (3Y)Largest decline over 3 years | -56.07% | -31.79% | -24.28% |
Max Drawdown (5Y)Largest decline over 5 years | -63.41% | -31.79% | -31.62% |
Max Drawdown (10Y)Largest decline over 10 years | -63.41% | -36.67% | -26.74% |
Current DrawdownCurrent decline from peak | -58.28% | -19.63% | -38.65% |
Average DrawdownAverage peak-to-trough decline | -13.02% | -26.83% | +13.81% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 19.98% | 10.81% | +9.17% |
Volatility
DEO vs. LMT - Volatility Comparison
Diageo plc (DEO) and Lockheed Martin Corporation (LMT) have volatilities of 6.98% and 7.02%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| DEO | LMT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.98% | 7.02% | -0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 26.52% | 20.04% | +6.48% |
Volatility (1Y)Calculated over the trailing 1-year period | 32.17% | 26.71% | +5.46% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 24.74% | 22.99% | +1.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.39% | 23.76% | -0.37% |
Dividends
DEO vs. LMT - Dividend Comparison
DEO's dividend yield for the trailing twelve months is around 4.06%, more than LMT's 2.53% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DEO Diageo plc | 4.06% | 4.80% | 3.26% | 2.77% | 2.16% | 1.82% | 2.29% | 2.07% | 2.51% | 2.18% | 3.00% | 3.13% |
LMT Lockheed Martin Corporation | 2.53% | 2.76% | 2.62% | 2.68% | 2.34% | 2.98% | 2.76% | 2.31% | 3.13% | 2.32% | 2.71% | 2.83% |
Financials
DEO vs. LMT - Financials Comparison
This section allows you to compare key financial metrics between Diageo plc and Lockheed Martin Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
DEO vs. LMT - Profitability Comparison
DEO - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Diageo plc reported a gross profit of 4.72B and revenue of 7.73B. Therefore, the gross margin over that period was 61.0%.
LMT - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Lockheed Martin Corporation reported a gross profit of 2.08B and revenue of 18.02B. Therefore, the gross margin over that period was 11.5%.
DEO - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Diageo plc reported an operating income of 2.41B and revenue of 7.73B, resulting in an operating margin of 31.1%.
LMT - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Lockheed Martin Corporation reported an operating income of 2.06B and revenue of 18.02B, resulting in an operating margin of 11.5%.
DEO - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Diageo plc reported a net income of 1.48B and revenue of 7.73B, resulting in a net margin of 19.1%.
LMT - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Lockheed Martin Corporation reported a net income of 1.49B and revenue of 18.02B, resulting in a net margin of 8.3%.
Frequently Asked Questions
DEO and LMT have a correlation of 0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LMT has higher volatility (7.02%) compared to DEO (6.98%). In terms of maximum drawdown, DEO dropped -63.41% vs LMT's -79.29%.
LMT currently has the higher Sharpe Ratio (0.69 vs -0.66), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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