RTO vs. TXT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at RTO and TXT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
RTO trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, TXT is a standard domestic listing.
| Symbol | RTO | TXT |
|---|---|---|
| Company Name | Rentokil Initial plc | Textron Inc. |
| Country | United Kingdom | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Commercial Services & Supplies | Aerospace & Defense |
| Market Capitalization | 12.23 billion USD | 14.39 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | November 18, 1996 | February 21, 1973 |
| Security Type | ADR | Common Stock |
Historical Performance
This chart compares the performance of RTO 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.
Historical Performance at a Glance
| Symbol | RTO | TXT |
|---|---|---|
| 5-Day Price Return | 0.42% | 1.36% |
| 13-Week Price Return | 2.55% | 9.91% |
| 26-Week Price Return | -14.42% | 11.24% |
| 52-Week Price Return | -24.62% | -9.02% |
| Month-to-Date Return | -4.45% | 3.84% |
| Year-to-Date Return | -9.53% | 5.58% |
| 10-Day Avg. Volume | 2.76M | 1.22M |
| 3-Month Avg. Volume | 3.96M | 1.54M |
| 3-Month Volatility | 31.82% | 23.12% |
| Beta | 0.90 | 1.14 |
Profitability
Return on Equity (TTM)
RTO
6.17%
Commercial Services & Supplies Industry
- Max
- 31.93%
- Q3
- 18.03%
- Median
- 9.43%
- Q1
- 6.44%
- Min
- -9.69%
RTO’s Return on Equity of 6.17% is in the lower quartile for the Commercial Services & Supplies industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
TXT
11.31%
Aerospace & Defense Industry
- Max
- 43.89%
- Q3
- 22.42%
- Median
- 12.50%
- Q1
- 5.21%
- Min
- -6.24%
TXT’s Return on Equity of 11.31% 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)
RTO
5.49%
Commercial Services & Supplies Industry
- Max
- 17.53%
- Q3
- 9.01%
- Median
- 5.20%
- Q1
- 2.75%
- Min
- -2.31%
RTO’s Net Profit Margin of 5.49% is aligned with the median group of its peers in the Commercial Services & Supplies industry. This indicates its ability to convert revenue into profit is typical for the sector.
TXT
5.80%
Aerospace & Defense Industry
- Max
- 14.54%
- Q3
- 8.08%
- Median
- 6.17%
- Q1
- 2.49%
- Min
- -1.63%
TXT’s Net Profit Margin of 5.80% 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)
RTO
9.93%
Commercial Services & Supplies Industry
- Max
- 23.43%
- Q3
- 12.19%
- Median
- 8.10%
- Q1
- 3.18%
- Min
- -6.03%
RTO’s Operating Profit Margin of 9.93% is around the midpoint for the Commercial Services & Supplies industry, indicating that its efficiency in managing core business operations is typical for the sector.
TXT
5.50%
Aerospace & Defense Industry
- Max
- 16.63%
- Q3
- 10.38%
- Median
- 8.29%
- Q1
- 6.21%
- Min
- 0.95%
TXT’s Operating Profit Margin of 5.50% is in the lower quartile for the Aerospace & Defense industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | RTO | TXT |
|---|---|---|
| Return on Equity (TTM) | 6.17% | 11.31% |
| Return on Assets (TTM) | 2.38% | 4.85% |
| Net Profit Margin (TTM) | 5.49% | 5.80% |
| Operating Profit Margin (TTM) | 9.93% | 5.50% |
| Gross Profit Margin (TTM) | -- | 19.73% |
Financial Strength
Current Ratio (MRQ)
RTO
1.12
Commercial Services & Supplies Industry
- Max
- 2.94
- Q3
- 1.89
- Median
- 1.38
- Q1
- 0.87
- Min
- 0.53
RTO’s Current Ratio of 1.12 aligns with the median group of the Commercial Services & Supplies industry, indicating that its short-term liquidity is in line with its sector peers.
TXT
1.70
Aerospace & Defense Industry
- Max
- 3.09
- Q3
- 1.98
- Median
- 1.23
- Q1
- 1.03
- Min
- 0.02
TXT’s Current Ratio of 1.70 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 (MRQ)
RTO
1.14
Commercial Services & Supplies Industry
- Max
- 1.67
- Q3
- 1.08
- Median
- 0.73
- Q1
- 0.36
- Min
- 0.00
RTO’s leverage is in the upper quartile of the Commercial Services & Supplies industry, with a Debt-to-Equity Ratio of 1.14. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
TXT
0.50
Aerospace & Defense Industry
- Max
- 1.70
- Q3
- 1.04
- Median
- 0.68
- Q1
- 0.41
- Min
- 0.00
TXT’s Debt-to-Equity Ratio of 0.50 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)
RTO
5.22
Commercial Services & Supplies Industry
- Max
- 24.70
- Q3
- 12.37
- Median
- 7.16
- Q1
- 2.69
- Min
- -10.97
RTO’s Interest Coverage Ratio of 5.22 is positioned comfortably within the norm for the Commercial Services & Supplies industry, indicating a standard and healthy capacity to cover its interest payments.
TXT
10.72
Aerospace & Defense Industry
- Max
- 36.57
- Q3
- 19.90
- Median
- 7.04
- Q1
- 2.40
- Min
- -7.63
TXT’s Interest Coverage Ratio of 10.72 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 | RTO | TXT |
|---|---|---|
| Current Ratio (MRQ) | 1.12 | 1.70 |
| Quick Ratio (MRQ) | 1.03 | 0.71 |
| Debt-to-Equity Ratio (MRQ) | 1.14 | 0.50 |
| Interest Coverage Ratio (TTM) | 5.22 | 10.72 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
RTO
3.44%
Commercial Services & Supplies Industry
- Max
- 3.44%
- Q3
- 2.30%
- Median
- 1.37%
- Q1
- 0.63%
- Min
- 0.00%
RTO’s Dividend Yield of 3.44% is exceptionally high, placing it well above the typical range for the Commercial Services & Supplies industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
TXT
0.08%
Aerospace & Defense Industry
- Max
- 2.03%
- Q3
- 1.22%
- Median
- 0.43%
- Q1
- 0.00%
- Min
- 0.00%
TXT’s Dividend Yield of 0.08% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
RTO
93.97%
Commercial Services & Supplies Industry
- Max
- 137.88%
- Q3
- 72.93%
- Median
- 40.45%
- Q1
- 23.31%
- Min
- 0.00%
RTO’s Dividend Payout Ratio of 93.97% is in the upper quartile for the Commercial Services & Supplies 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.
TXT
1.85%
Aerospace & Defense Industry
- Max
- 83.87%
- Q3
- 49.90%
- Median
- 16.48%
- Q1
- 0.00%
- Min
- 0.00%
TXT’s Dividend Payout Ratio of 1.85% 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 | RTO | TXT |
|---|---|---|
| Dividend Yield (TTM) | 3.44% | 0.08% |
| Dividend Payout Ratio (TTM) | 93.97% | 1.85% |
Valuation
Price-to-Earnings Ratio (TTM)
RTO
27.30
Commercial Services & Supplies Industry
- Max
- 57.20
- Q3
- 37.10
- Median
- 22.38
- Q1
- 16.35
- Min
- 0.00
RTO’s P/E Ratio of 27.30 is within the middle range for the Commercial Services & Supplies industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
TXT
17.34
Aerospace & Defense Industry
- Max
- 65.97
- Q3
- 54.11
- Median
- 34.53
- Q1
- 23.66
- Min
- 0.00
In the lower quartile for the Aerospace & Defense industry, TXT’s P/E Ratio of 17.34 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
RTO
1.50
Commercial Services & Supplies Industry
- Max
- 4.64
- Q3
- 2.28
- Median
- 0.97
- Q1
- 0.64
- Min
- 0.00
RTO’s P/S Ratio of 1.50 aligns with the market consensus for the Commercial Services & Supplies industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
TXT
1.01
Aerospace & Defense Industry
- Max
- 8.07
- Q3
- 4.49
- Median
- 2.42
- Q1
- 1.39
- Min
- 0.00
In the lower quartile for the Aerospace & Defense industry, TXT’s P/S Ratio of 1.01 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 (MRQ)
RTO
1.69
Commercial Services & Supplies Industry
- Max
- 6.71
- Q3
- 4.38
- Median
- 2.39
- Q1
- 1.57
- Min
- 0.43
RTO’s P/B Ratio of 1.69 is within the conventional range for the Commercial Services & Supplies 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.
TXT
1.95
Aerospace & Defense Industry
- Max
- 13.67
- Q3
- 7.92
- Median
- 4.65
- Q1
- 2.68
- Min
- 0.82
TXT’s P/B Ratio of 1.95 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 | RTO | TXT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 27.30 | 17.34 |
| Price-to-Sales Ratio (TTM) | 1.50 | 1.01 |
| Price-to-Book Ratio (MRQ) | 1.69 | 1.95 |
| Price-to-Free Cash Flow Ratio (TTM) | 13.32 | 19.15 |