Analyzing RTX (RTX) & The Competition

RTX (NYSE:RTX) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it compare to its competitors? We will compare RTX to similar businesses based on the strength of its institutional ownership, profitability, valuation, risk, earnings, dividends and analyst recommendations.

Risk and Volatility

RTX has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, RTX’s competitors have a beta of 1.39, meaning that their average share price is 39% more volatile than the S&P 500.

Earnings and Valuation

This table compares RTX and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
RTX	$88.60 billion	$6.73 billion	31.70
RTX Competitors	$8.33 billion	$569.54 million	24.80

RTX has higher revenue and earnings than its competitors. RTX is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares RTX and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RTX	8.75%	14.89%	5.90%
RTX Competitors	-286.73%	-47.03%	-4.24%

Dividends

RTX pays an annual dividend of $2.92 per share and has a dividend yield of 1.5%. RTX pays out 47.4% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 38.6% of their earnings in the form of a dividend. RTX has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for RTX and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RTX	1	8	16	1	2.65
RTX Competitors	2152	8246	12738	579	2.50

RTX currently has a consensus price target of $231.24, suggesting a potential upside of 18.41%. As a group, “Aerospace & Defense” companies have a potential upside of 28.64%. Given RTX’s competitors higher probable upside, analysts plainly believe RTX has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

86.5% of RTX shares are owned by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 0.1% of RTX shares are owned by insiders. Comparatively, 11.8% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

RTX beats its competitors on 11 of the 15 factors compared.

RTX Company Profile

RTX Corporation, an aerospace and defense company, provides systems and services for the commercial, military, and government customers in the United States and internationally. It operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems segment offers aerospace and defense products, and aftermarket service solutions for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations. This segment also designs, produces, and supports cabin interior, including oxygen systems, food and beverage preparation, storage and galley systems, and lavatory and wastewater management systems; battlespace, test and training range systems, crew escape systems, and simulation and training solutions; information management services; and aftermarket services that include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services. Its Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units. The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for U.S., foreign government, and commercial customers. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.