Lockheed Martin Edges Out Boeing as Top Defense Stock Buy

Boeing and Lockheed Martin are two aerospace giants competing in the global defense industry. Both companies have their strengths and weaknesses, making it challenging to determine which one is a better buy in 2026.

Boeing operates as a massive global aerospace entity that builds commercial airplanes, defense systems, and space technologies. In FY 2025, revenue reached approximately $89.5 billion, a 34.5% increase from the prior year. However, the company's reliance on commercial airlines and government agencies adds a layer of risk to its business.

Lockheed Martin is a pure-play defense technology company with a specialized focus that differs from Boeing's commercial-heavy mix. Its primary customer is the U.S. government, which accounted for roughly 72% of consolidated sales in FY 2025. The F-35 program remains its most vital asset, representing approximately 27% of its total revenue.

When comparing the two companies' risk profiles, Boeing faces risks related to production and certification delays for its 777X, 737, and 787 programs. Lockheed Martin is highly susceptible to changes in U.S. government defense spending and potential budget cuts.