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BAE Systems vs L3Harris Technologies: Which Stock Looks Stronger in 2026?

BAE Systems holds the cleaner structural position, with profitability as the main driver and growth adding further support. L3Harris Technologies still leads on growth and valuation, which keeps the comparison from looking entirely one-sided. The market setup broadly confirms the structural lead — BAE Systems holds the more constructive position. That puts structure and market broadly in agreement — BAE Systems's lead looks more confirmed than conflicted.

The comparison is based on similar long-term financial trajectories, not sector labels. Peer scores are normalised within each company's primary universe (BA.L: STOXX 600, LHX: S&P 500).

Updated 2026-07-05

The comparison is mainly decided in profitability, with the rest of the profile carrying less weight.

INDUSTRY COMPARISON

Both operate in: Aerospace & Defense

This comparison is based on industry proximity, not on functional trajectory similarity. BA.L and LHX share the same industry classification.

For a similarity-based comparison, see how BAE Systems and L3Harris Technologies each position within their functional peer groups in AssetNext.

Peer-Relative Score
BA.L
BAE Systems plc
61
Peer-Score
Signal qualitylow
Peer basis: STOXX 600
vs
LHX
L3Harris Technologies, Inc.
54
Peer-Score
Signal qualitylow
Peer basis: S&P 500

Scores reflect position relative to comparable companies with similar long-term financial trajectories.

Score differences across key dimensions.

Dimension spread: BA.L vs LHX Profitability 75 38 Stability 66 56 Valuation 49 59 Growth 54 69 BA.L LHX
Gap Ranking
#1 Profitability +37
#2 Growth +15
#3 Valuation +10
#4 Stability +10
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for BA.L and LHX Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer BA.LLHX Relative valuation Structural strength

BAE Systems plc still looks stronger overall, though current pricing looks more supportive for L3Harris Technologies, Inc..

Valuation position uses peer-relative PE percentile (idx_pct_pe) where available.

Relative Position vs Comparable Companies
Profitability
BAE Systems plc ranks near the top of the group on profitability; L3Harris Technologies, Inc. sits in the weaker half.
Growth
On growth, the same pattern holds: both rank well, but L3Harris Technologies, Inc. still sits higher.
Profitability — Dominant Gap
BA.L
75
LHX
38
Gap+37in favour of BA.L

Capital efficiency adds support, with a 6.9-point ROIC advantage.

What keeps the gap from being one-sided

L3Harris Technologies still pushes back on growth by a very wide margin, which keeps the read from becoming one-way.

What this means for the comparison

The profitability edge is decisive, even though current pricing and growth still lean somewhat toward L3Harris Technologies, Inc..

Explore full peer positioning in AssetNext

Break down the BA.L vs LHX comparison across all dimensions with the full interactive tool.

Explore full breakdown →
Similar profitability-driven comparisons

Explore how BA.L and LHX each compare against other companies in their peer groups.

Rule-based, descriptive analysis only. Derived from peer percentile dimensions. Not investment advice. Peer groups are determined algorithmically based on structural similarity — not by sector classification alone.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.