RTX vs Lockheed: A Clear Winner in the Aerospace Defense Industry

Investor Alina Yermalovich favors RTX over Lockheed Martin, citing RTX's diversified business model and strong growth prospects in the defense sector. Yermalovich holds four aerospace and defense stocks, representing 20% of her portfolio.

The defense sector is experiencing a significant transformation driven by geopolitical tensions, supply chain vulnerabilities, and the urgent need for next-generation technologies. Two companies, Draganfly Inc. (DPRO) and Park Aerospace Corp. (PKE), have emerged as key players in this evolving landscape, each with unique strengths and growth prospects.

Draganfly Inc. (DPRO)

Draganfly Inc., a Canadian-based drone innovator, has recently secured a series of high-impact military contracts with the U.S. Department of Defense (DoD). These contracts, involving platforms like the Flex FPV and Commander 3 XL, position Draganfly as a critical player in the $13.8 billion global military drone market [1]. The company's strategic alignment with the U.S. military's modernization agenda justifies its long-term investment potential in this high-margin, rapidly expanding sector.

The strategic value of Draganfly's military contracts lies in their ability to address operational flexibility and supply chain security. The Flex FPV, a modular, high-speed drone, is being deployed for allied land operations, while the Commander 3 XL, dubbed the "Swiss Army Knife of drones," is being integrated into intelligence, surveillance, and reconnaissance (ISR) operations. These contracts align with the U.S. DoD's pivot toward domestically produced drones, reducing reliance on foreign suppliers [1].

Partnerships and technological synergy further bolster Draganfly's position. Collaborations with defense contractors like Virtual Reality Rehab Inc. (VRR) and Coldchain Technology Services amplify its value proposition. For instance, the integration of Commander 3 XL drones with VRR's Holowarrior platform enables augmented reality (AR) control and autonomous swarm recovery—a game-changer for urban warfare and GPS-denied scenarios [1].

Financial implications and market response suggest a positive outlook. While the financial terms of Draganfly's contracts remain undisclosed, the market has priced in optimism. On July 16, 2025, DPRO's stock surged 21.81% following the DoD's selection of its Commander 3 XL for advanced reconnaissance missions [1]. The company's Q1 2025 revenue of $1.547 million, a 16% year-over-year increase, indicates improving momentum despite a comprehensive loss of $3.4 million for the quarter.

Park Aerospace Corp. (PKE)

Park Aerospace Corp., a leader in carbon-phenolic composite materials and ablative technologies, has also emerged as a standout in the defense sector. With a Q1 2026 earnings beat, margin expansion, and a robust pipeline of long-term contracts, the company is uniquely positioned to capitalize on the $2.5% CAGR growth of the U.S. defense composites market through 2030 [2].

Park's Q1 2026 results underscore its operational excellence. Net sales of $15.4 million fell within the guided range of $15–$16 million, with gross profit of $4.718 million translating to a 30.6% margin—exceeding its internal targets. This margin expansion, despite underutilized manufacturing capacity, reflects disciplined production planning and the normalization of low-margin fabric sales. Adjusted EBITDA of $3 million (19.2% margin) further validates the company's ability to convert revenue into profitability [2].

Park's competitive edge lies in its exclusive contracts with defense and aerospace giants. The company's Long-Term Agreement (LTA) with GE Aerospace has already delivered $6.2 million in Q1 sales, surpassing forecasts of $5.2–$5.6 million. With Q2 guidance of $6.7–$7.2 million for the program and a full-year target of $28–$32 million, this partnership provides a clear revenue runway. The recent $40 million blanket purchase order from a key OEM and the Aireon collaboration further solidify Park's role in mission-critical applications [2].

Conclusion

Both Draganfly Inc. and Park Aerospace Corp. are well-positioned to benefit from the defense sector's growth. Draganfly's strategic military contracts and technological innovations make it an attractive long-term investment for risk-tolerant investors. Meanwhile, Park's expertise in advanced materials and strong contract visibility position it as a high-margin play on defense secular trends. For investors seeking exposure to the defense industrial base, these companies represent compelling opportunities.

References:
[1] https://www.ainvest.com/news/draganfly-strategic-military-contracts-catalyst-defense-sector-growth-long-term-investment-potential-2507/
[2] https://www.ainvest.com/news/park-aerospace-pke-high-conviction-buy-defense-driven-aerospace-sector-2507/