ESLT vs LHX: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: LHX is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ESLT and LHX share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ESLT and LHX exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Elbit Systems Ltd (Nasdaq and Tel Aviv: ESLT) is an Israel-based defense technology company that develops, manufactures, integrates and sustains military systems across land, sea, air, cyber and space domains. Its portfolio spans C4ISR (command, control and intelligence systems), electro-optics and thermal imaging, unmanned aerial and ground systems, precision munitions and artillery rockets (including its PULS launcher), helmet-mounted displays for pilots, and electronic warfare. The company employs more than 20,000 people across five continents and generates a large share of sales from export customers, with roughly 72% of its order backlog attributable to orders from outside Israel as of the end of 2025.

Full ESLT guide

L3Harris Technologies is a major US defense and aerospace contractor formed by the 2019 merger of L3 Technologies and Harris Corporation. It positions itself as an agile defense-technology company spanning communications, sensors, electronic warfare, space, intelligence, and missile systems. The business is organized into segments covering Space and Airborne Systems (avionics, sensors, electronic warfare, space payloads), Integrated Mission Systems (ISR, maritime, electro-optical), Communication Systems (tactical radios, secure communications), and, following its acquisition of Aerojet Rocketdyne, a propulsion segment that makes rocket motors and missile propulsion for the US military and space programs. L3Harris primarily sells to the US Department of Defense, allied governments, and intelligence agencies under long-term contracts, which gives it durable, often multi-year revenue backed by defense budgets. It makes money by designing, building, and supporting mission-critical hardware and software, then earning long-tail revenue from sustainment, upgrades, and spare parts. The company also pursues cost-savings programs to expand margins after its large merger and acquisitions. Headquartered in Melbourne, Florida.

Full LHX guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• ESLT drivers: Record backlog and revenue visibility; European rearmament tailwind.
• LHX drivers: Rising global defense spending; Diversified mission-critical portfolio.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The most cited risk is valuation: ESLT trades at a trailing price-to-earnings ratio around the low-to-mid 60s, far above the industrials-sector average, so disappointing execution could compress the multiple sharply. For LHX, l3Harris depends heavily on US government and allied defense budgets, so spending cuts, continuing resolutions, government shutdowns, or shifting priorities directly threaten revenue.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick ESLT if you believe its drivers more; LHX if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the ESLT and LHX guides.

ESLT. As of July 2026, ESLT traded around $800 per share with a market cap in the mid-$30 billion range, valuing the company at roughly 63 times trailing earnings, well above the industrials-sector average near 30. The premium reflects a record backlog, double-digit revenue growth and strong free cash flow. The small dividend (about $2.70 per share annually) signals a growth-and-reinvestment profile rather than an income story.

LHX. L3Harris trades at a defense-sector multiple supported by a large multi-year backlog, predictable government revenue, and steady free cash flow. The valuation reflects the durability of defense spending and the company's margin-expansion and capital-return story, offset by debt from acquisitions and program-execution risk. Defense names like L3Harris are often valued on backlog visibility and free cash flow as much as headline earnings.

Headline figures (approximate, JULY 2026): ESLT shows revenue (fy2025) ~$7.9B, revenue growth (yoy) ~16%, gaap eps (fy2025) ~$11.39, order backlog (q1 2026) ~$30.2B; LHX shows revenue (ttm) ~$21 billion, operating margin ~15%, net income (ttm) ~$1.5-2 billion, p/e (ttm) ~20x.

ESLT and LHX are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ESLT and LHX exposure against your real portfolio. It is not an investment adviser.