AME vs. RTX: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AME and RTX, comparing key factors like performance, valuation metrics, dividends, and financial strength.
Company Overview
RTX’s market capitalization of 183.64 billion USD is significantly greater than AME’s 40.71 billion USD, highlighting its more substantial market valuation.
AME’s beta of 1.12 points to significantly higher volatility compared to RTX (beta: 0.59), suggesting AME has greater potential for both gains and losses relative to market movements.
| Symbol | AME | RTX |
|---|---|---|
| Company Name | AMETEK, Inc. | RTX Corporation |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Industrial - Machinery | Aerospace & Defense |
| CEO | Mr. David A. Zapico | Mr. Christopher T. Calio |
| Price | 176.32 USD | 137.46 USD |
| Market Cap | 40.71 billion USD | 183.64 billion USD |
| Beta | 1.12 | 0.59 |
| Exchange | NYSE | NYSE |
| IPO Date | July 19, 1984 | September 15, 1952 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AME and RTX over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
This section compares the market valuation of AME and RTX. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.
- RTX’s Price-to-Earnings (P/E) ratio of 39.96 is very high. This signifies that its stock is trading at a premium, likely reflecting market optimism about its future growth, though it also implies a higher risk if these growth expectations are not met.
- AME’s Forward PEG ratio of 3.84 and RTX’s Forward PEG ratio of 4.38 are both considered very high. For AME, this elevated ratio implies its stock price may incorporate highly optimistic growth assumptions that could be challenging to realize. RTX’s very high PEG also suggests its valuation is quite rich relative to its expected earnings growth, potentially indicating overvaluation.
| Symbol | AME | RTX |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 28.70 | 39.96 |
| Forward PEG Ratio (TTM) | 3.84 | 4.38 |
| Price-to-Sales Ratio (P/S, TTM) | 5.87 | 2.25 |
| Price-to-Book Ratio (P/B, TTM) | 4.08 | 2.99 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 23.76 | 35.54 |
| EV-to-EBITDA (TTM) | 20.14 | 17.20 |
| EV-to-Sales (TTM) | 6.09 | 2.69 |
| EV-to-Free Cash Flow (TTM) | 24.65 | 42.54 |
Dividend Comparison
RTX provides a dividend yield of 1.87%, which is significantly higher than AME’s 0.65%, highlighting its commitment to more generous shareholder payouts.
| Symbol | AME | RTX |
|---|---|---|
| Dividend Yield (TTM) | 0.65% | 1.87% |
Financial Strength Metrics Comparison
Explore the financial strength details for AME and RTX in the table below.
| Symbol | AME | RTX |
|---|---|---|
| Current Ratio (TTM) | 1.41 | 1.01 |
| Quick Ratio (TTM) | 0.86 | 0.75 |
| Debt-to-Equity Ratio (TTM) | 0.19 | 0.67 |
| Interest Coverage Ratio (TTM) | 23.38 | 3.70 |