LMT vs YSS: 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: 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 YSS 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 YSS 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

York Space Systems, Inc. (NYSE: YSS) is a vertically integrated space and defense prime headquartered in Greenwood Village, Colorado. Founded in 2012 and formerly known as Yellowstone Midco Holdings II, it designs, produces, integrates, and operates spacecraft and constellations built on standardized satellite platforms (S-CLASS, LX-CLASS, and M-CLASS). Its largest customer is the US Space Development Agency, where it has been a prime awardee across the Proliferated Warfighter Space Architecture (PWSA) tranches, and it is positioned into national-security programs tied to missile tracking and the Golden Dome initiative. The company went public in late January 2026 and has been acquiring suppliers, including propulsion maker Orbion Space Technology and solar-technology firm Solestial, to build out a more vertically integrated stack.

Full YSS 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.
• YSS drivers: Government space-architecture demand; Backlog conversion and revenue 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 YSS, york is not yet profitable and reported a large trailing net loss, so its valuation embeds expectations of future growth and margin improvement that may not materialize.

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; YSS 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 YSS 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.

YSS. York trades at roughly 6 to 8 times trailing revenue with no positive earnings, a valuation typical of a high-growth, recently public defense-space name. Backlog of about $642M and 2026 guidance imply continued strong growth, but the net loss and heavy investment mean the market is pricing future execution rather than current profits. Figures are approximate and drawn from mid-2026 public sources.

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; YSS shows revenue (ttm) ~$396M, 2025 revenue ~$386M (+52% YoY), 2026 revenue guidance ~$545M to $595M, net income (ttm) ~-$249M (net loss).

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