Contrasting Lockheed Martin (NYSE:LMT) and Butler National (OTCMKTS:BUKS)

Butler National (OTCMKTS:BUKS) and Lockheed Martin (NYSE:LMT) are both aerospace companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Butler National	16.60%	22.23%	11.27%
Lockheed Martin	5.73%	111.84%	11.85%

Risk and Volatility

Butler National has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Lockheed Martin has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500.

Earnings and Valuation

This table compares Butler National and Lockheed Martin”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Butler National	$83.97 million	2.27	$12.55 million	$0.21	11.33
Lockheed Martin	$71.04 billion	1.47	$5.34 billion	$17.91	25.23

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

Analyst Recommendations

This is a breakdown of recent recommendations for Butler National and Lockheed Martin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Butler National	0	0	0	0	0.00
Lockheed Martin	1	15	7	2	2.40

Lockheed Martin has a consensus target price of $515.50, indicating a potential upside of 14.07%. Given Lockheed Martin’s stronger consensus rating and higher probable upside, analysts clearly believe Lockheed Martin is more favorable than Butler National.

Institutional and Insider Ownership

5.0% of Butler National shares are owned by institutional investors. Comparatively, 74.2% of Lockheed Martin shares are owned by institutional investors. 17.6% of Butler National shares are owned by company insiders. Comparatively, 0.1% of Lockheed Martin shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Lockheed Martin beats Butler National on 11 of the 15 factors compared between the two stocks.

About Butler National

Butler National Corporation, together with its subsidiaries, designs, engineers, manufactures, sells, integrates, installs, repairs, modifies, overhauls, services, and distributes a portfolio of aerostructures, aircraft components, avionics, accessories, subassemblies, and systems in North America, Europe, the Middle East, Asia, and internationally. It operates through two segments, Aerospace Products and Professional Services. The Aerospace Products segment provides aircraft modifications to business-size aircraft, which include passenger-to-freighter configuration, radar systems, addition of aerial photography capabilities, search and rescue, environmental research, mapping, intelligence surveillance reconnaissance modifications, and stability enhancing modifications for Learjet, Beechcraft, and Cessna aircraft along with other specialized modifications. This segment manufactures, sells, and services electronics for weapon control systems that are used on government aircraft and vehicles; and sells, installs, and repairs aircraft avionics equipment, including airplane radio equipment and flight control systems, as well as troubleshoots and repairs autopilot systems. Its Professional Services segment manages Boot Hill Casino and Resort, a gaming, dining, and entertainment facility in Dodge City, Kansas. The company acquires, refurbishes, and sells airplanes, primarily Learjets; owns properties; and operates a management consulting and administrative services firm that provides business planning and financial coordination to Indian tribes interested in owning and operating casinos. It serves the aviation industry, including owners and operators of private and commercial business and government aircraft and suppliers. Butler National Corporation was incorporated in 1960 and is headquartered in New Century, Kansas.

About Lockheed Martin

Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. The company operates through Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space segments. The Aeronautics segment offers combat and air mobility aircraft, unmanned air vehicles, and related technologies. The Missiles and Fire Control segment provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support, and integration services; manned and unmanned ground vehicles; and energy management solutions. The Rotary and Mission Systems segment offers military and commercial helicopters, surface ships, sea and land-based missile defense systems, radar systems, sea and air-based mission and combat systems, command and control mission solutions, cyber solutions, and simulation and training solutions. The Space segment offers satellites; space transportation systems; strategic, advanced strike, and defensive systems; and classified systems and services in support of national security systems. This segment also provides network-enabled situational awareness and integrates space and ground global systems to help its customers gather, analyze, and securely distribute critical intelligence data. It serves primarily serves the U.S. government, as well as foreign military sales contracted through the U.S. government. The company was founded in 1912 and is based in Bethesda, Maryland.