AIR vs. TXT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AIR and TXT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
TXT’s market capitalization of 14.85 billion USD is significantly greater than AIR’s 2.58 billion USD, highlighting its more substantial market valuation.
With betas of 1.43 for AIR and 1.16 for TXT, both stocks show similar sensitivity to overall market movements.
| Symbol | AIR | TXT |
|---|---|---|
| Company Name | AAR Corp. | Textron Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Aerospace & Defense | Aerospace & Defense |
| CEO | John McClain Holmes III | Scott C. Donnelly |
| Price | 71.46 USD | 82.23 USD |
| Market Cap | 2.58 billion USD | 14.85 billion USD |
| Beta | 1.43 | 1.16 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | December 22, 1947 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AIR and TXT by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AIR
-1.04%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
AIR has a negative Return on Equity of -1.04%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
TXT
11.74%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
TXT’s Return on Equity of 11.74% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
AIR
-17.13%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
AIR has a negative Return on Invested Capital of -17.13%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
TXT
6.50%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
TXT’s Return on Invested Capital of 6.50% is in line with the norm for the Aerospace & Defense industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
AIR
-0.46%
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
AIR has a negative Net Profit Margin of -0.46%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
TXT
5.98%
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
TXT’s Net Profit Margin of 5.98% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AIR
5.84%
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
AIR’s Operating Profit Margin of 5.84% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.
TXT
6.57%
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
TXT’s Operating Profit Margin of 6.57% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AIR | TXT |
|---|---|---|
| Return on Equity (TTM) | -1.04% | 11.74% |
| Return on Assets (TTM) | -0.43% | 4.90% |
| Return on Invested Capital (TTM) | -17.13% | 6.50% |
| Net Profit Margin (TTM) | -0.46% | 5.98% |
| Operating Profit Margin (TTM) | 5.84% | 6.57% |
| Gross Profit Margin (TTM) | 18.82% | 18.85% |
Financial Strength
Current Ratio
AIR
2.82
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
AIR’s Current Ratio of 2.82 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.
TXT
1.66
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
TXT’s Current Ratio of 1.66 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
AIR
0.92
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.73
- Median
- 0.51
- Q1
- 0.09
- Min
- 0.00
AIR’s leverage is in the upper quartile of the Aerospace & Defense industry, with a Debt-to-Equity Ratio of 0.92. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
TXT
0.51
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.73
- Median
- 0.51
- Q1
- 0.09
- Min
- 0.00
TXT’s Debt-to-Equity Ratio of 0.51 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
AIR
2.06
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
AIR’s Interest Coverage Ratio of 2.06 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.
TXT
9.02
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
TXT’s Interest Coverage Ratio of 9.02 is in the upper quartile for the Aerospace & Defense industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AIR | TXT |
|---|---|---|
| Current Ratio (TTM) | 2.82 | 1.66 |
| Quick Ratio (TTM) | 1.39 | 0.69 |
| Debt-to-Equity Ratio (TTM) | 0.92 | 0.51 |
| Debt-to-Asset Ratio (TTM) | 0.38 | 0.22 |
| Net Debt-to-EBITDA Ratio (TTM) | 7.43 | 1.72 |
| Interest Coverage Ratio (TTM) | 2.06 | 9.02 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AIR and TXT. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AIR
0.00%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AIR currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
TXT
0.10%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TXT’s Dividend Yield of 0.10% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AIR
0.00%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AIR has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
TXT
1.33%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TXT’s Dividend Payout Ratio of 1.33% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AIR | TXT |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.10% |
| Dividend Payout Ratio (TTM) | 0.00% | 1.33% |
Valuation
Price-to-Earnings Ratio
AIR
-204.01
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
AIR has a negative P/E Ratio of -204.01. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
TXT
18.07
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
In the lower quartile for the Aerospace & Defense industry, TXT’s P/E Ratio of 18.07 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Forward P/E to Growth Ratio
AIR
-12.58
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
AIR has a negative Forward PEG Ratio of -12.58. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
TXT
1.70
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
TXT’s Forward PEG Ratio of 1.70 is within the middle range of its peers in the Aerospace & Defense industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
AIR
0.96
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
In the lower quartile for the Aerospace & Defense industry, AIR’s P/S Ratio of 0.96 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
TXT
1.07
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
In the lower quartile for the Aerospace & Defense industry, TXT’s P/S Ratio of 1.07 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio
AIR
2.14
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
AIR’s P/B Ratio of 2.14 is in the lower quartile for the Aerospace & Defense industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
TXT
2.06
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
TXT’s P/B Ratio of 2.06 is in the lower quartile for the Aerospace & Defense industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | AIR | TXT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -204.01 | 18.07 |
| Forward PEG Ratio (TTM) | -12.58 | 1.70 |
| Price-to-Sales Ratio (P/S, TTM) | 0.96 | 1.07 |
| Price-to-Book Ratio (P/B, TTM) | 2.14 | 2.06 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -430.00 | 27.24 |
| EV-to-EBITDA (TTM) | 26.48 | 11.98 |
| EV-to-Sales (TTM) | 1.34 | 1.25 |