GE vs. RTX: A Head-to-Head Stock Comparison
Here's a clear look at GE and RTX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | GE | RTX |
|---|---|---|
| Company Name | GE Aerospace | RTX Corporation |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Capital Goods | Capital Goods |
| GICS Industry | Industrial Conglomerates | Aerospace & Defense |
| GICS Sub-Industry | Industrial Conglomerates | Aerospace & Defense |
| Market Capitalization | 298.31 billion USD | 255.34 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | January 2, 1962 | April 2, 1962 |
| Security Type | Common Stock | Common Stock |
GE's market capitalization stands at 298.31 billion USD, while RTX's is 255.34 billion USD, indicating their market valuations are broadly comparable.
Historical Performance
This chart compares the performance of GE 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.
Historical Performance at a Glance
| Symbol | GE | RTX |
|---|---|---|
| 5-Day Price Return | -2.99% | -2.62% |
| 13-Week Price Return | -10.37% | 2.13% |
| 26-Week Price Return | -6.05% | 18.99% |
| 52-Week Price Return | 37.37% | 42.18% |
| Month-to-Date Return | -17.37% | -6.37% |
| Year-to-Date Return | -8.19% | 3.44% |
| 10-Day Avg. Volume | 5.84M | 4.89M |
| 3-Month Avg. Volume | 5.30M | 5.69M |
| 3-Month Volatility | 34.41% | 24.94% |
| Beta | 1.50 | 0.43 |
GE's beta of 1.50 points to significantly higher volatility compared to RTX (beta: 0.43), suggesting GE has greater potential for both gains and losses relative to market movements.
Profitability
Return on Equity (TTM)
GE
45.88%
Industrial Conglomerates Industry
- Max
- 19.74%
- Q3
- 13.65%
- Median
- 8.53%
- Q1
- 5.88%
- Min
- -3.73%
GE's Return on Equity of 45.88% is exceptionally high, placing it well beyond the typical range for the Industrial Conglomerates industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
RTX
10.62%
Aerospace & Defense Industry
- Max
- 43.22%
- Q3
- 22.91%
- Median
- 14.92%
- Q1
- 8.33%
- Min
- -6.41%
RTX's Return on Equity of 10.62% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
GE
18.98%
Industrial Conglomerates Industry
- Max
- 18.98%
- Q3
- 12.86%
- Median
- 9.45%
- Q1
- 4.34%
- Min
- -2.43%
A Net Profit Margin of 18.98% places GE in the upper quartile for the Industrial Conglomerates industry, signifying strong profitability and more effective cost management than most of its peers.
RTX
7.60%
Aerospace & Defense Industry
- Max
- 15.84%
- Q3
- 9.85%
- Median
- 7.02%
- Q1
- 4.53%
- Min
- -3.23%
RTX's Net Profit Margin of 7.60% 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 (TTM)
GE
16.86%
Industrial Conglomerates Industry
- Max
- 27.11%
- Q3
- 17.04%
- Median
- 12.58%
- Q1
- 8.53%
- Min
- -3.91%
GE's Operating Profit Margin of 16.86% is around the midpoint for the Industrial Conglomerates industry, indicating that its efficiency in managing core business operations is typical for the sector.
RTX
10.50%
Aerospace & Defense Industry
- Max
- 22.71%
- Q3
- 13.36%
- Median
- 9.57%
- Q1
- 6.49%
- Min
- -3.63%
RTX's Operating Profit Margin of 10.50% 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 | GE | RTX |
|---|---|---|
| Return on Equity (TTM) | 45.88% | 10.62% |
| Return on Assets (TTM) | 6.86% | 4.01% |
| Net Profit Margin (TTM) | 18.98% | 7.60% |
| Operating Profit Margin (TTM) | 16.86% | 10.50% |
| Gross Profit Margin (TTM) | 35.00% | 20.08% |
Financial Strength
Current Ratio (MRQ)
GE
1.04
Industrial Conglomerates Industry
- Max
- 1.93
- Q3
- 1.55
- Median
- 1.33
- Q1
- 1.23
- Min
- 0.87
GE's Current Ratio of 1.04 falls into the lower quartile for the Industrial Conglomerates industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
RTX
1.03
Aerospace & Defense Industry
- Max
- 3.10
- Q3
- 2.22
- Median
- 1.22
- Q1
- 1.10
- Min
- 0.47
RTX's Current Ratio of 1.03 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.
Debt-to-Equity Ratio (MRQ)
GE
1.10
Industrial Conglomerates Industry
- Max
- 2.65
- Q3
- 1.43
- Median
- 0.86
- Q1
- 0.61
- Min
- 0.17
GE's Debt-to-Equity Ratio of 1.10 is typical for the Industrial Conglomerates industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
RTX
0.58
Aerospace & Defense Industry
- Max
- 1.89
- Q3
- 0.98
- Median
- 0.58
- Q1
- 0.36
- Min
- 0.03
RTX's Debt-to-Equity Ratio of 0.58 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 (TTM)
GE
5.01
Industrial Conglomerates Industry
- Max
- 13.50
- Q3
- 7.98
- Median
- 4.18
- Q1
- 2.90
- Min
- -2.15
GE's Interest Coverage Ratio of 5.01 is positioned comfortably within the norm for the Industrial Conglomerates industry, indicating a standard and healthy capacity to cover its interest payments.
RTX
5.99
Aerospace & Defense Industry
- Max
- 43.00
- Q3
- 22.16
- Median
- 8.02
- Q1
- 3.54
- Min
- -5.44
RTX's Interest Coverage Ratio of 5.99 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | GE | RTX |
|---|---|---|
| Current Ratio (MRQ) | 1.04 | 1.03 |
| Quick Ratio (MRQ) | 0.74 | 0.80 |
| Debt-to-Equity Ratio (MRQ) | 1.10 | 0.58 |
| Interest Coverage Ratio (TTM) | 5.01 | 5.99 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | GE | RTX |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 17.63% | 12.09% |
| Revenue Growth (TTM vs Prior YoY) | 18.48% | 9.74% |
| 3-Year Revenue CAGR | 16.32% | 9.72% |
| 5-Year Revenue CAGR | -9.57% | 9.38% |
EPS Growth
EPS Growth at a Glance
| Symbol | GE | RTX |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 36.66% | 8.43% |
| EPS Growth (TTM vs Prior YoY) | 35.99% | 39.69% |
| 3-Year EPS CAGR | 198.60% | 12.37% |
| 5-Year EPS CAGR | 9.37% | -- |
Dividend
Dividend Yield (TTM)
GE
0.49%
Industrial Conglomerates Industry
- Max
- 10.51%
- Q3
- 5.21%
- Median
- 2.87%
- Q1
- 1.61%
- Min
- 0.00%
GE's Dividend Yield of 0.49% is in the lower quartile for the Industrial Conglomerates industry. This suggests the company's strategy likely favors retaining earnings for growth over providing a high dividend income.
RTX
1.40%
Aerospace & Defense Industry
- Max
- 2.21%
- Q3
- 1.41%
- Median
- 0.64%
- Q1
- 0.10%
- Min
- 0.00%
RTX's Dividend Yield of 1.40% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
GE
16.68%
Industrial Conglomerates Industry
- Max
- 182.48%
- Q3
- 97.32%
- Median
- 49.85%
- Q1
- 26.34%
- Min
- 0.00%
GE's Dividend Payout Ratio of 16.68% is in the lower quartile for the Industrial Conglomerates industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
RTX
53.09%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 50.63%
- Median
- 20.44%
- Q1
- 0.80%
- Min
- 0.00%
RTX's Dividend Payout Ratio of 53.09% 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.
Dividend at a Glance
| Symbol | GE | RTX |
|---|---|---|
| Dividend Yield (TTM) | 0.49% | 1.40% |
| Dividend Payout Ratio (TTM) | 16.68% | 53.09% |
Valuation
Price-to-Earnings Ratio (TTM)
GE
34.08
Industrial Conglomerates Industry
- Max
- 40.03
- Q3
- 23.21
- Median
- 13.96
- Q1
- 8.74
- Min
- 5.20
A P/E Ratio of 34.08 places GE in the upper quartile for the Industrial Conglomerates industry. This high valuation relative to peers suggests the market holds elevated expectations for the company's future growth.
RTX
37.83
Aerospace & Defense Industry
- Max
- 91.95
- Q3
- 51.00
- Median
- 31.74
- Q1
- 21.93
- Min
- 12.34
RTX's P/E Ratio of 37.83 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.
Price-to-Sales Ratio (TTM)
GE
6.47
Industrial Conglomerates Industry
- Max
- 4.57
- Q3
- 2.18
- Median
- 0.78
- Q1
- 0.51
- Min
- 0.11
With a P/S Ratio of 6.47, GE trades at a valuation that eclipses even the highest in the Industrial Conglomerates industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
RTX
2.87
Aerospace & Defense Industry
- Max
- 9.98
- Q3
- 5.37
- Median
- 2.68
- Q1
- 1.77
- Min
- 0.27
RTX's P/S Ratio of 2.87 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.
Price-to-Book Ratio (MRQ)
GE
17.40
Industrial Conglomerates Industry
- Max
- 5.72
- Q3
- 2.65
- Median
- 1.18
- Q1
- 0.57
- Min
- 0.28
At 17.40, GE's P/B Ratio is at an extreme premium to the Industrial Conglomerates industry. This signifies that the market's valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
RTX
3.77
Aerospace & Defense Industry
- Max
- 16.65
- Q3
- 10.07
- Median
- 5.92
- Q1
- 3.01
- Min
- 0.91
RTX's P/B Ratio of 3.77 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.
Valuation at a Glance
| Symbol | GE | RTX |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 34.08 | 37.83 |
| Price-to-Sales Ratio (TTM) | 6.47 | 2.87 |
| Price-to-Book Ratio (MRQ) | 17.40 | 3.77 |
| Price-to-Free Cash Flow Ratio (TTM) | 40.83 | 33.32 |