GD vs LMT: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of September 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: LMT 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. GD and LMT 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 GD and LMT 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.

General Dynamics is one of the largest US aerospace and defense contractors, with a diversified portfolio spanning four main areas. Its Aerospace segment builds Gulfstream business jets, among the most prestigious in the world. Marine Systems builds nuclear-powered submarines and other naval vessels for the US Navy, including ballistic missile and attack submarines through its Electric Boat and Bath Iron Works yards. Combat Systems produces armored vehicles, including the Abrams tank and Stryker, plus munitions and weapons systems. Technologies provides IT services, communications, and mission systems to defense and government customers. General Dynamics makes money through long-term government contracts for shipbuilding, vehicles, and services, plus commercial Gulfstream jet sales. Headquartered in Reston, Virginia, the company benefits from large multi-year defense programs, a substantial backlog, and steady government demand. Its mix of defense and high-end business aviation gives it a balance of stable contracted revenue and cyclical premium jet sales.

Full GD guide

Lockheed Martin is the largest defense contractor in the world, generating the vast majority of its revenue from the US government and allied militaries. It is organized into four segments: Aeronautics (home of the F-35 Lightning II, F-22, and C-130, the largest segment), Rotary and Mission Systems (Sikorsky helicopters, combat systems, radar, and sensors), Missiles and Fire Control (precision missiles, HIMARS, PAC-3 interceptors, and hypersonics), and Space (satellites, missile-defense systems, and strategic and hypersonic programs). Lockheed designs, builds, and sustains some of the most advanced and mission-critical weapons systems in the world, including the F-35, its single largest program, which generates long-tail revenue from production, upgrades, and decades of sustainment. The company makes money under long-term government contracts, with a large multi-year backlog that provides revenue visibility. It pursues hypersonics, missile defense, and space as growth areas. As a flagship defense name, Lockheed is a steady cash generator that returns substantial capital to shareholders. Headquartered in Bethesda, Maryland.

Full LMT guide

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

• GD drivers: Submarine and naval programs; Gulfstream business jets.
• LMT drivers: The F-35 franchise; Rising defense budgets and munitions demand.

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: General Dynamics depends heavily on US government defense spending, which is subject to budget politics, continuing resolutions, and shifting priorities. For LMT, lockheed depends overwhelmingly on US and allied defense budgets, so spending cuts, continuing resolutions, 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 GD if you believe its drivers more; LMT 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 GD and LMT guides.

GD. General Dynamics is valued as a stable, cash-generative defense prime with a large multi-year backlog plus a cyclical premium business jet franchise. Investors weigh the predictability of government contracts and a long dividend-growth record against the cyclicality of Gulfstream and execution risk in shipbuilding. The valuation reflects steady defense demand and consistent capital return.

LMT. Lockheed trades at a defense-sector multiple supported by an enormous backlog, predictable government revenue, and reliable free cash flow that funds a growing dividend and large buybacks. The valuation reflects the durability of defense spending and the F-35 annuity, offset by program-concentration risk and occasional charges on fixed-price contracts. As a defensive cash compounder, Lockheed is often valued on free cash flow and backlog visibility as much as headline earnings.

Headline figures (approximate, early 2026): GD shows revenue (ttm) ~$45 to 50 billion, operating margin ~low double digits percent, net income (ttm) ~$3.5 to 4 billion, order backlog ~$90 billion or more; LMT shows revenue (ttm) ~$72 billion, operating margin ~11-12%, net income (ttm) ~$5-6 billion, p/e (ttm) ~17x.

GD and LMT 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 GD and LMT exposure against your real portfolio. It is not an investment adviser.