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ETN vs. RTX: A Head-to-Head Stock Comparison

Here’s a clear look at ETN and RTX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolETNRTX
Company NameEaton Corporation plcRTX Corporation
CountryIrelandUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryElectrical EquipmentAerospace & Defense
GICS Sub-IndustryElectrical Components & EquipmentAerospace & Defense
Market Capitalization162.70 billion USD240.53 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJune 1, 1972April 2, 1962
Security TypeCommon StockCommon Stock

ETN’s market capitalization stands at 162.70 billion USD, while RTX’s is 240.53 billion USD, indicating their market valuations are broadly comparable.

Historical Performance

This chart compares the performance of ETN and RTX 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.

ETN
RTX
Loading price history…
ETN vs. RTX: Growth of a $10,000 investment over the past five years.

Historical Performance at a Glance

SymbolETNRTX
5-Day Price Return1.98%3.32%
13-Week Price Return12.09%-10.09%
26-Week Price Return8.39%0.89%
52-Week Price Return35.22%38.81%
Month-to-Date Return-3.24%1.44%
Year-to-Date Return31.55%-2.61%
10-Day Avg. Volume3.33M5.62M
3-Month Avg. Volume2.81M5.92M
3-Month Volatility38.67%26.43%
Beta1.240.31

ETN’s beta of 1.24 points to significantly higher volatility compared to RTX (beta: 0.31), suggesting ETN has greater potential for both gains and losses relative to market movements.

Profitability

Return on Equity (TTM)

ETN

21.70%

Electrical Equipment Industry
Max
42.06%
Q3
26.89%
Median
15.05%
Q1
-10.76%
Min
-62.42%

ETN’s Return on Equity of 21.70% is on par with the norm for the Electrical Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

RTX

11.23%

Aerospace & Defense Industry
Max
37.11%
Q3
16.85%
Median
10.69%
Q1
-2.08%
Min
-27.49%

RTX’s Return on Equity of 11.23% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

ETN vs. RTX: A comparison of their Return on Equity (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Net Profit Margin (TTM)

ETN

15.22%

Electrical Equipment Industry
Max
46.70%
Q3
16.13%
Median
10.37%
Q1
-39.83%
Min
-107.51%

ETN’s Net Profit Margin of 15.22% is aligned with the median group of its peers in the Electrical Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.

RTX

8.03%

Aerospace & Defense Industry
Max
22.24%
Q3
9.64%
Median
6.65%
Q1
0.42%
Min
-4.12%

RTX’s Net Profit Margin of 8.03% 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.

ETN vs. RTX: A comparison of their Net Profit Margin (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Operating Profit Margin (TTM)

ETN

19.18%

Electrical Equipment Industry
Max
25.78%
Q3
18.25%
Median
11.54%
Q1
-25.81%
Min
-37.27%

An Operating Profit Margin of 19.18% places ETN in the upper quartile for the Electrical Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

RTX

10.87%

Aerospace & Defense Industry
Max
24.61%
Q3
11.79%
Median
9.34%
Q1
-1.21%
Min
-16.44%

RTX’s Operating Profit Margin of 10.87% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.

ETN vs. RTX: A comparison of their Operating Profit Margin (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Profitability at a Glance

SymbolETNRTX
Return on Equity (TTM)21.70%11.23%
Return on Assets (TTM)10.12%4.29%
Net Profit Margin (TTM)15.22%8.03%
Operating Profit Margin (TTM)19.18%10.87%
Gross Profit Margin (TTM)37.81%20.21%

Financial Strength

Current Ratio (MRQ)

ETN

1.32

Electrical Equipment Industry
Max
2.75
Q3
2.73
Median
2.05
Q1
1.35
Min
0.73

ETN’s Current Ratio of 1.32 falls into the lower quartile for the Electrical Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

RTX

1.02

Aerospace & Defense Industry
Max
5.51
Q3
3.47
Median
2.20
Q1
1.44
Min
0.45

RTX’s Current Ratio of 1.02 falls into the lower quartile for the Aerospace & Defense industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ETN vs. RTX: A comparison of their Current Ratio (MRQ) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ETN

0.51

Electrical Equipment Industry
Max
1.40
Q3
0.87
Median
0.57
Q1
0.19
Min
0.00

ETN’s Debt-to-Equity Ratio of 0.51 is typical for the Electrical Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

RTX

0.56

Aerospace & Defense Industry
Max
0.89
Q3
0.58
Median
0.49
Q1
0.16
Min
0.00

RTX’s Debt-to-Equity Ratio of 0.56 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.

ETN vs. RTX: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio (TTM)

ETN

21.46

Electrical Equipment Industry
Max
23.13
Q3
9.92
Median
0.32
Q1
-9.30
Min
-29.00

ETN’s Interest Coverage Ratio of 21.46 is in the upper quartile for the Electrical Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

RTX

6.03

Aerospace & Defense Industry
Max
29.86
Q3
15.07
Median
7.88
Q1
1.37
Min
-17.81

RTX’s Interest Coverage Ratio of 6.03 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

ETN vs. RTX: A comparison of their Interest Coverage Ratio (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

SymbolETNRTX
Current Ratio (MRQ)1.321.02
Quick Ratio (MRQ)0.740.78
Debt-to-Equity Ratio (MRQ)0.510.56
Interest Coverage Ratio (TTM)21.466.03

Growth

Revenue Growth

ETN vs. RTX: A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

SymbolETNRTX
Revenue Growth (MRQ vs Prior YoY)13.06%8.72%
Revenue Growth (TTM vs Prior YoY)-17.92%10.56%
3-Year Revenue CAGR9.77%9.72%
5-Year Revenue CAGR8.98%9.38%

EPS Growth

ETN vs. RTX: A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

SymbolETNRTX
EPS Growth (MRQ vs Prior YoY)18.49%32.88%
EPS Growth (TTM vs Prior YoY)10.00%56.47%
3-Year EPS CAGR19.38%12.37%
5-Year EPS CAGR24.52%--

Dividend

Dividend Yield (TTM)

ETN

1.02%

Electrical Equipment Industry
Max
1.17%
Q3
0.53%
Median
0.09%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.02%, ETN offers a more attractive income stream than most of its peers in the Electrical Equipment industry, signaling a strong commitment to shareholder returns.

RTX

1.52%

Aerospace & Defense Industry
Max
1.72%
Q3
0.74%
Median
0.11%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.52%, RTX offers a more attractive income stream than most of its peers in the Aerospace & Defense industry, signaling a strong commitment to shareholder returns.

ETN vs. RTX: A comparison of their Dividend Yield (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio (TTM)

ETN

39.76%

Electrical Equipment Industry
Max
52.06%
Q3
23.62%
Median
1.83%
Q1
0.00%
Min
0.00%

ETN’s Dividend Payout Ratio of 39.76% is in the upper quartile for the Electrical Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

RTX

50.29%

Aerospace & Defense Industry
Max
65.74%
Q3
32.06%
Median
5.51%
Q1
0.00%
Min
0.00%

RTX’s Dividend Payout Ratio of 50.29% is in the upper quartile for the Aerospace & Defense industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ETN vs. RTX: A comparison of their Dividend Payout Ratio (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Dividend at a Glance

SymbolETNRTX
Dividend Yield (TTM)1.02%1.52%
Dividend Payout Ratio (TTM)39.76%50.29%

Valuation

Price-to-Earnings Ratio (TTM)

ETN

38.98

Electrical Equipment Industry
Max
100.52
Q3
61.53
Median
36.90
Q1
29.20
Min
6.14

ETN’s P/E Ratio of 38.98 is within the middle range for the Electrical Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

RTX

33.15

Aerospace & Defense Industry
Max
82.28
Q3
57.19
Median
33.88
Q1
26.55
Min
1.07

RTX’s P/E Ratio of 33.15 is within the middle range for the Aerospace & Defense industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ETN vs. RTX: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio (TTM)

ETN

7.81

Electrical Equipment Industry
Max
12.71
Q3
10.49
Median
6.22
Q1
4.29
Min
1.10

ETN’s P/S Ratio of 7.81 aligns with the market consensus for the Electrical Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

RTX

2.66

Aerospace & Defense Industry
Max
14.80
Q3
7.70
Median
4.81
Q1
2.37
Min
0.83

RTX’s P/S Ratio of 2.66 aligns with the market consensus for the Aerospace & Defense industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ETN vs. RTX: A comparison of their Price-to-Sales Ratio (TTM) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio (MRQ)

ETN

6.37

Electrical Equipment Industry
Max
11.68
Q3
6.90
Median
5.06
Q1
2.93
Min
0.46

ETN’s P/B Ratio of 6.37 is within the conventional range for the Electrical Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

RTX

3.92

Aerospace & Defense Industry
Max
16.33
Q3
8.88
Median
4.32
Q1
2.91
Min
1.10

RTX’s P/B Ratio of 3.92 is within the conventional range for the Aerospace & Defense industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ETN vs. RTX: A comparison of their Price-to-Book Ratio (MRQ) against their respective Electrical Equipment and Aerospace & Defense industry benchmarks.

Valuation at a Glance

SymbolETNRTX
Price-to-Earnings Ratio (TTM)38.9833.15
Price-to-Sales Ratio (TTM)7.812.66
Price-to-Book Ratio (MRQ)6.373.92
Price-to-Free Cash Flow Ratio (TTM)44.8729.46