The comparison between Lockheed Martin (NYSE: LMT) and RTX (NYSE: RTX) isn't perfect, given RTX's substantial exposure to commercial aerospace. However, given that commercial aerospace stocks tend to command valuation premiums over defense companies, and RTX's defense business carries less risk than Lockheed Martin's, I would argue that the former is the better buy on a risk/reward basis. Here's why. The defense industry is changing Investors traditionally looked at defense stocks as relatively safe investments, as their customers, governments, and notably the U.S. government and its NATO allies, are seen as being as reliable as can be. In addition, defense spending isn't cyclical.
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