LMT vs. NOC
LMT (Lockheed Martin Corporation) and NOC (Northrop Grumman Corporation) are both stocks. Both operate in the Aerospace & Defense industry within the Industrials sector. Over the past 10 years, LMT returned 10.37%/yr vs 10.84%/yr for NOC. At a 0.48 correlation, their price movements are largely independent.
Performance
LMT vs. NOC - Performance Comparison
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Returns By Period
In the year-to-date period, LMT achieves a 3.26% return, which is significantly higher than NOC's -10.35% return. Both investments have delivered pretty close results over the past 10 years, with LMT having a 10.37% annualized return and NOC not far ahead at 10.84%.
LMT
- 1D
- -3.40%
- 1M
- -6.83%
- YTD
- 3.26%
- 6M
- 3.28%
- 1Y
- 7.73%
- 3Y*
- 5.21%
- 5Y*
- 8.40%
- 10Y*
- 10.37%
NOC
- 1D
- -2.72%
- 1M
- -8.28%
- YTD
- -10.35%
- 6M
- -12.57%
- 1Y
- 3.53%
- 3Y*
- 5.50%
- 5Y*
- 8.24%
- 10Y*
- 10.84%
LMT vs. NOC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
LMT Lockheed Martin Corporation | 3.26% | 2.47% | 10.02% | -4.31% | 40.48% | 3.15% | -6.49% | 52.55% | -16.35% | 31.77% |
NOC Northrop Grumman Corporation | -10.35% | 23.61% | 1.93% | -12.79% | 43.02% | 29.29% | -9.92% | 42.69% | -18.95% | 33.88% |
Correlation
The correlation between LMT and NOC is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.69 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.68 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.72 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.75 |
Correlation (All Time) Calculated using the full available price history since Dec 31, 1981 | 0.48 |
Over the past year, LMT and NOC have become more correlated (0.69) than their long-term average of 0.48, meaning their price movements have been converging.
Fundamentals
LMT:
$114.07B
NOC:
$72.29B
LMT:
$20.61
NOC:
$31.95
LMT:
23.95
NOC:
15.88
LMT:
1.53
NOC:
1.72
LMT:
15.23
NOC:
4.22
LMT:
$75.12B
NOC:
$42.37B
LMT:
$7.37B
NOC:
$8.69B
LMT:
$8.09B
NOC:
$7.50B
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Return for Risk
LMT vs. NOC — Risk / Return Rank
LMT
NOC
LMT vs. NOC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC). 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.
| LMT | NOC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.16 | ||
| Sortino ratioReturn per unit of downside risk | +0.17 | ||
| Omega ratioGain probability vs. loss probability | 1.08 | 1.05 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 0.29 | 0.11 | +0.19 |
| Martin ratioReturn relative to average drawdown | 0.71 | 0.27 | +0.43 |
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Drawdowns
LMT vs. NOC - Drawdown Comparison
The maximum LMT drawdown since its inception was -79.29%, which is greater than NOC's maximum drawdown of -71.12%. Use the drawdown chart below to compare losses from any high point for LMT and NOC.
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Drawdown Indicators
| LMT | NOC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -79.29% | -71.12% | -8.17% |
Max Drawdown (1Y)Largest decline over 1 year | -26.58% | -33.65% | +7.07% |
Max Drawdown (3Y)Largest decline over 3 years | -31.79% | -33.65% | +1.86% |
Max Drawdown (5Y)Largest decline over 5 years | -31.79% | -33.65% | +1.86% |
Max Drawdown (10Y)Largest decline over 10 years | -36.67% | -36.38% | -0.29% |
Current DrawdownCurrent decline from peak | -26.58% | -33.65% | +7.07% |
Average DrawdownAverage peak-to-trough decline | -26.83% | -18.41% | -8.42% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.93% | 12.93% | -2.00% |
Volatility
LMT vs. NOC - Volatility Comparison
Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC) have volatilities of 8.79% and 9.19%, 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
| LMT | NOC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.79% | 9.19% | -0.40% |
Volatility (6M)Calculated over the trailing 6-month period | 20.75% | 21.98% | -1.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 26.48% | 26.60% | -0.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.13% | 25.43% | -2.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.84% | 25.51% | -1.67% |
Dividends
LMT vs. NOC - Dividend Comparison
LMT's dividend yield for the trailing twelve months is around 2.77%, more than NOC's 1.85% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LMT Lockheed Martin Corporation | 2.77% | 2.76% | 2.62% | 2.68% | 2.34% | 2.98% | 2.76% | 2.31% | 3.13% | 2.32% | 2.71% | 2.83% |
NOC Northrop Grumman Corporation | 1.85% | 1.58% | 1.72% | 1.57% | 1.24% | 1.59% | 1.86% | 1.50% | 1.92% | 1.27% | 1.50% | 1.64% |
Financials
LMT vs. NOC - Financials Comparison
This section allows you to compare key financial metrics between Lockheed Martin Corporation and Northrop Grumman 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
LMT vs. NOC - Profitability Comparison
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%.
NOC - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Northrop Grumman Corporation reported a gross profit of 1.96B and revenue of 9.88B. Therefore, the gross margin over that period was 19.8%.
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%.
NOC - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Northrop Grumman Corporation reported an operating income of 989.00M and revenue of 9.88B, resulting in an operating margin of 10.0%.
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%.
NOC - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Northrop Grumman Corporation reported a net income of 875.00M and revenue of 9.88B, resulting in a net margin of 8.9%.
Frequently Asked Questions
LMT and NOC have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
NOC has higher volatility (9.19%) compared to LMT (8.79%). In terms of maximum drawdown, LMT dropped -79.29% vs NOC's -71.12%.
LMT currently has the higher Sharpe Ratio (0.29 vs 0.13), 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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