Head-To-Head Contrast: Lockheed Martin (NYSE:LMT) and Safran (OTCMKTS:SAFRY)

Safran (OTCMKTS:SAFRY) and Lockheed Martin (NYSE:LMT) are both large-cap aerospace companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Dividends

Safran pays an annual dividend of $0.55 per share and has a dividend yield of 0.6%. Lockheed Martin pays an annual dividend of $13.80 per share and has a dividend yield of 2.8%. Lockheed Martin pays out 77.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lockheed Martin has raised its dividend for 22 consecutive years. Lockheed Martin is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Safran	N/A	N/A	N/A
Lockheed Martin	5.73%	111.84%	11.85%

Volatility & Risk

Safran has a beta of 1.09, indicating that its stock price is 9% more 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Safran and Lockheed Martin, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safran	0	3	4	2	2.89
Lockheed Martin	1	18	4	2	2.28

Lockheed Martin has a consensus price target of $506.67, indicating a potential upside of 4.38%. Given Lockheed Martin’s higher probable upside, analysts clearly believe Lockheed Martin is more favorable than Safran.

Insider and Institutional Ownership

0.1% of Safran shares are held by institutional investors. Comparatively, 74.2% of Lockheed Martin shares are held by institutional investors. 0.1% of Lockheed Martin shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Safran and Lockheed Martin”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safran	$30.47 billion	4.89	-$721.76 million	N/A	N/A
Lockheed Martin	$71.04 billion	1.58	$5.34 billion	$17.91	27.10

Lockheed Martin has higher revenue and earnings than Safran.

Summary

Lockheed Martin beats Safran on 10 of the 14 factors compared between the two stocks.

About Safran

Safran SA, together with its subsidiaries, engages in the aerospace and defense businesses worldwide. The company operates through three segments: Aerospace Propulsion; Aircraft Equipment, Defense and Aerosystems; and Aircraft Interiors. The Aerospace Propulsion segment designs, develops, produces, and markets propulsion and mechanical power transmission systems for commercial aircraft, military transport, training and combat aircraft, civil and military helicopters, satellites, and drones; and offers maintenance, repair, and overhaul (MRO) services, as well as sells spare parts. The Aircraft Equipment, Defense and Aerosystems segment provides landing gears and brakes; nacelles and reversers; avionics, such as flight controls and onboard information systems; security systems, including evacuation slides and oxygen masks; onboard computers and fuel systems; electrical power management systems and related engineering services; and optronic equipment and sights, navigation equipment and sensors, infantry, and drones, as well as offers MRO services and sells spare parts. The Aircraft Interiors segment designs, develops, manufactures, and markets aircraft seats for passengers and crew; cabin equipment, overhead bins, class dividers, passenger service units, cabin interior solutions, chilling systems, galleys, electrical inserts, and trolleys and cargo equipment; and cabin and passenger solutions, such as water distribution equipment, lavatories, air systems, and in-flight entertainment and connectivity systems. Its products and services are used in civil and military aircraft, and helicopters. Safran SA was founded in 1896 and is based in Paris, France.

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.