Lockheed Martin vs. RTX: Which Defense Stock Wins in 2026?
Two defense giants go head-to-head. Here's how to think about picking between Lockheed Martin and RTX for your portfolio.
If you've been eyeing the defense sector lately, you've probably noticed that Lockheed Martin and RTX (formerly Raytheon Technologies) keep showing up on the same shortlists. Both are heavyweight contractors with deep ties to the U.S. military, but they're actually pretty different animals when you look under the hood — and that matters a lot depending on what you're looking for in a stock.
Lockheed Martin is the world's largest defense contractor, best known for the F-35 fighter jet program, which generates a massive chunk of its revenue. That kind of program lock-in can be a huge moat, but it also means the company's fortunes are tightly tied to government budget decisions and long-term procurement cycles. When Washington sneezes on defense spending, Lockheed feels it.
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RTX, on the other hand, runs a more diversified playbook. Beyond its missile and radar systems on the defense side, it also has a significant commercial aerospace business through Pratt & Whitney engines and Collins Aerospace. That commercial exposure can act as a cushion when pure-play defense budgets get choppy — but it also means RTX isn't a pure defense bet, which some investors actually prefer.
The comparison ultimately comes down to what you want your defense allocation to do for you. If you want maximum exposure to government defense contracts and a single dominant platform, Lockheed's concentration could be a feature, not a bug. If you'd rather spread your risk across both military and commercial aerospace markets, RTX offers that built-in diversification without having to buy two separate stocks.
Both companies operate in a sector that tends to hold up well during geopolitical uncertainty, which — let's be honest — isn't exactly in short supply right now. Neither stock is a slam-dunk bargain at any given moment, so valuation, dividend history, and your own risk tolerance should all factor into the decision. Continue reading at fool (brendan coffey) for the full breakdown and analyst take on which stock comes out ahead.
