L3Harris Technologies, Inc. LHX

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
60/100
Moderate

Ranked against 79 peers in Aerospace & Defense

About L3Harris Technologies, Inc.

L3Harris Technologies, Inc. provides mission-critical solutions for government and commercial customers worldwide. It operates through three segments: Space & Mission Systems (SMS), Communications & Spectrum Dominance (CSD), and Missile Solutions (MSL). The SMS segment integrates satellite and payload capabilities, including missile warning and defense, with maritime, air special missions, and other global defense and civil government programs. Its MSL segment … Full LHX analysis →

Key strengths

  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.72), demonstrating pricing resilience across cycles.
  • Revenue Growth Consistent Revenue growth volatility is low (stability score 0.71), suggesting sticky customer base.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.18), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
63
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Where LHX ranks in Aerospace & Defense

L3Harris Technologies, Inc. ranks #27 of 80 scored companies in Aerospace & Defense by moat score — the top 34%. The widest moat in the group is Howmet Aerospace Inc. (HWM) at 80/100.

# Company Moat score Rating
23 Lockheed Martin Corporation LMT 62/100 Moderate
24 CAE Inc. CAE 61/100 Moderate
25 StandardAero, Inc. SARO 61/100 Moderate
26 Leonardo DRS, Inc. DRS 60/100 Moderate
27 L3Harris Technologies, Inc. LHX 60/100 Moderate
28 Hexcel Corporation HXL 60/100 Moderate
29 Astronics Corporation ATRO 60/100 Moderate
30 Byrna Technologies, Inc. BYRN 60/100 Moderate
31 AAR Corp. AIR 59/100 Moderate

See every General Corporate company ranked by moat score →

How LHX scores on the Corporate Default defenses

Pricing Power

Score 63 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 71 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 77 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 60 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 42 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 47 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding LHX's moat

What is L3Harris Technologies, Inc.'s moat score?

L3Harris Technologies, Inc. (LHX) scores 60 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #27 of 80 scored companies in Aerospace & Defense, the top 34%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 79 companies in Aerospace & Defense. Its strongest defense is Customer Stickiness (77/100) and its weakest is Resilience (42/100).

How does L3Harris Technologies, Inc. compare with other Aerospace & Defense companies?

L3Harris Technologies, Inc. ranks #27 of 80 scored companies in Aerospace & Defense by moat score. The widest moat in Aerospace & Defense is Howmet Aerospace Inc. (HWM) at 80/100. The companies ranked closest are Leonardo DRS, Inc. (DRS) at 60 just above it and Hexcel Corporation (HXL) at 60 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 79 companies in Aerospace & Defense. The defenses are then weighted to produce the overall score out of 100.

Why is L3Harris Technologies, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for L3Harris Technologies, Inc.?

The Corporate Default template measures 6 defenses, and LHX scores: Pricing Power (63), Cost Advantage (71), Customer Stickiness (77), Capital Efficiency (60), Resilience (42), Scale & Market Position (47). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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