Financial Review: Lockheed Martin (NYSE:LMT) & ATI (NYSE:ATI)

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

Risk & Volatility

ATI has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Lockheed Martin has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.

Institutional & Insider Ownership

74.2% of Lockheed Martin shares are held by institutional investors. 1.0% of ATI shares are held by insiders. Comparatively, 0.1% of Lockheed Martin shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares ATI and Lockheed Martin”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATI	$4.59 billion	6.74	$404.30 million	$3.41	66.56
Lockheed Martin	$75.05 billion	1.84	$5.02 billion	$27.13	22.04

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ATI	10.09%	29.27%	10.59%
Lockheed Martin	8.16%	91.42%	11.02%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ATI and Lockheed Martin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATI	0	0	9	1	3.10
Lockheed Martin	1	11	7	1	2.40

ATI currently has a consensus target price of $232.00, suggesting a potential upside of 2.21%. Lockheed Martin has a consensus target price of $632.39, suggesting a potential upside of 5.74%. Given Lockheed Martin’s higher probable upside, analysts plainly believe Lockheed Martin is more favorable than ATI.

About ATI

ATI Inc. produces and sells specialty materials and complex components worldwide. It operates in two segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). The HPMC segment produces various materials, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, metallic powder alloys, advanced powder alloys and other specialty materials, in long product forms, such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, as well as precision forgings, components, and machined parts. The AA&S segment produces zirconium and related alloys, including hafnium and niobium, nickel-based alloys, titanium and titanium-based alloys, and specialty alloys in a variety of forms, such as plate, sheet, and precision rolled strip products. It also provides hot-rolling conversion services, including carbon steel products. ATI Inc. serves to aerospace and defense, energy, automotive, construction and mining, food equipment and appliances, and medical markets. The company was formerly known as Allegheny Technologies Incorporated. ATI Inc. was incorporated in 1996 and is headquartered in Dallas, Texas.

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.