Better Buy: GE Aerospace vs. Lockheed Martin
Comparing commercial aerospace giant GE Aerospace (NYSE: GE) with leading defense contractor Lockheed Martin (NYSE: LMT) is always interesting because it requires taking a big-picture view. This isn't about one quarter's earnings or even a year's worth; it concerns a long-term view of how each company makes money. So let's dive in and see what we can find out.
Spoiler alert: GE Aerospace, which makes aircraft engines, is the better stock. While not everyone will agree with that conclusion, the debate will shed some light on the long-term investment cases for each stock.
GE Aerospace operates in the commercial aviation industry, an indispensable part of the global economy. While airlines haven't always been such great investments, and the industry has suffered periodic cyclical highs and lows, airlines have traditionally not had an issue raising debt (not least because debts are securitized with valuable assets, the planes themselves).
Source Fool.com
