LMT vs RKLB: How Lockheed Martin and Rocket Lab Compare (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: 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. LMT and RKLB 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 LMT and RKLB 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.

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

Rocket Lab (RKLB) is a space company that builds rockets and spacecraft and provides end-to-end space services. Its established business is the Electron, a small orbital launch vehicle that is one of the most frequently flown small rockets in the world, carrying satellites for commercial, government, and defense customers. Rocket Lab is developing Neutron, a larger, partly reusable medium-lift rocket intended to compete for bigger payloads and constellation deployments, directly targeting the market SpaceX dominates.

Full RKLB guide

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

• LMT drivers: The F-35 franchise; Rising defense budgets and munitions demand.
• RKLB drivers: Neutron medium-lift rocket; Space Systems growth.

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: Lockheed depends overwhelmingly on US and allied defense budgets, so spending cuts, continuing resolutions, shutdowns, or shifting priorities directly threaten revenue. For RKLB, rocket Lab is not yet consistently profitable and invests heavily in Neutron, so cash burn and capital needs are real until that program generates 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 LMT if you believe its drivers more; RKLB 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 LMT and RKLB guides.

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.

RKLB. Rocket Lab trades as a high-growth space name valued on its Space Systems revenue and the future option value of Neutron rather than current profits. The premium price-to-sales multiple reflects the launch-plus-systems opportunity and defense tailwinds, balanced against losses and Neutron execution risk. Valuation is highly sensitive to Neutron milestones and launch cadence.

Headline figures (approximate, early 2026): LMT shows revenue (ttm) ~$72 billion, operating margin ~11-12%, net income (ttm) ~$5-6 billion, p/e (ttm) ~17x; RKLB shows revenue (ttm) ~$500 million, revenue growth Strong double-digit, gross margin Positive and improving, operating margin Negative (investing in Neutron).

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