Palantir vs. Lockheed Martin: Which Defense Stock Wins the Next 5 Years?
Palantir may deliver the biggest gains if its AI momentum continues, but Lockheed Martin's lower valuation and government-backed demand make it the more attractive five-year investment for most investors.
Overview
Two companies capture the past and future of defense investing. Palantir Technologies (NASDAQ: PLTR) is the AI software upstart that has soared so far it recently passed Lockheed Martin (NYSE: LMT) in total market value, while Lockheed is the century-old prime contractor that builds the jets and missiles themselves. Both are riding somewhat of a wave of rising military spending, so which one wins over the next five years? At today's prices, the answer comes down to a single question: How much are you willing to pay for growth?
Palantir is the growth engine of the two by a mile. Its software helps militaries turn oceans of data into fast decisions, and it has landed marquee wins such as the Maven Smart System (MSS) now used by the Pentagon and NATO. In short, MSS is an AI-powered command-and-control software platform developed by the U.S. Department of Defense and Palantir.
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Originally published at www.fool.com.