Boeing vs. Lockheed Martin: Which Aerospace Stock Is a Better Buy in 2026?

Boeing Co (NYSE:BA) and Lockheed Martin Corp (NYSE:LMT) are two prominent players in the aerospace and defense industry, often compared by investors. Boeing is a global aerospace entity, building commercial airplanes, defense systems, and space technologies, with a significant presence in over 150 countries. Lockheed Martin, on the other hand, is a specialized defense technology company, with the majority of its sales coming from the U.S. government.

In 2025, Boeing reported revenue of approximately $89.5 billion, a 34.5% increase from the previous year, and net income of roughly $2.2 billion, resulting in a net margin of about 2.5%. The company's debt-to-equity ratio was nearly 10x, and its current ratio was roughly 1.1x. Meanwhile, Lockheed Martin reported revenue of about $75.1 billion, a 5.7% increase from the prior year, and net income of just over $5 billion.

The company's debt-to-equity ratio was roughly 3.2x, and its current ratio was approximately 1.1x. Free cash flow was a healthy $6.9 billion for Lockheed Martin.

Lockheed Martin's F-35 program, contributing nearly 27% of its total revenue, is its most vital asset. The company also provides specialized services to international allies through foreign military sales. Boeing faces risks related to production and certification delays for its 777X, 737, and 787 programs, as well as competition from Airbus in the commercial aircraft market.

Lockheed Martin is highly dependent on U.S. government defense spending and potential budget cuts, as well as a complex supply chain vulnerable to trade restrictions.

Based on future earnings estimates, Lockheed Martin appears to be the more conservatively valued option, while Boeing continues to trade at a premium during its recovery. However, Boeing's recovery is still underway, with challenges in safety and supply chain issues. Despite this, Boeing remains a large player in the aerospace and defense industry, offering long-term prospects due to its leading position in commercial aerospace.