RTX vs. TXT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at RTX and TXT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | RTX | TXT |
|---|---|---|
| Company Name | RTX Corporation | Textron Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Aerospace & Defense | Aerospace & Defense |
| Market Capitalization | 209.13 billion USD | 14.53 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | April 2, 1962 | February 21, 1973 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of RTX 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 | RTX | TXT |
|---|---|---|
| 5-Day Price Return | 0.48% | 3.11% |
| 13-Week Price Return | 15.78% | 11.11% |
| 26-Week Price Return | 26.24% | 12.55% |
| 52-Week Price Return | 33.24% | -8.02% |
| Month-to-Date Return | -0.84% | 4.83% |
| Year-to-Date Return | 35.02% | 6.59% |
| 10-Day Avg. Volume | 3.68M | 1.31M |
| 3-Month Avg. Volume | 5.33M | 1.54M |
| 3-Month Volatility | 19.36% | 24.13% |
| Beta | 0.66 | 1.14 |
Profitability
Return on Equity (TTM)
RTX
10.03%
Aerospace & Defense Industry
- Max
- 43.89%
- Q3
- 22.42%
- Median
- 12.50%
- Q1
- 5.21%
- Min
- -6.24%
RTX’s Return on Equity of 10.03% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.
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)
RTX
7.35%
Aerospace & Defense Industry
- Max
- 14.54%
- Q3
- 8.08%
- Median
- 6.17%
- Q1
- 2.49%
- Min
- -1.63%
RTX’s Net Profit Margin of 7.35% 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.
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)
RTX
9.95%
Aerospace & Defense Industry
- Max
- 16.63%
- Q3
- 10.38%
- Median
- 8.29%
- Q1
- 6.21%
- Min
- 0.95%
RTX’s Operating Profit Margin of 9.95% is around the midpoint for the Aerospace & Defense 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 | RTX | TXT |
|---|---|---|
| Return on Equity (TTM) | 10.03% | 11.31% |
| Return on Assets (TTM) | 3.73% | 4.85% |
| Net Profit Margin (TTM) | 7.35% | 5.80% |
| Operating Profit Margin (TTM) | 9.95% | 5.50% |
| Gross Profit Margin (TTM) | 20.05% | 19.73% |
Financial Strength
Current Ratio (MRQ)
RTX
1.01
Aerospace & Defense Industry
- Max
- 3.09
- Q3
- 1.98
- Median
- 1.23
- Q1
- 1.03
- Min
- 0.02
RTX’s Current Ratio of 1.01 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.
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)
RTX
0.67
Aerospace & Defense Industry
- Max
- 1.70
- Q3
- 1.04
- Median
- 0.68
- Q1
- 0.41
- Min
- 0.00
RTX’s Debt-to-Equity Ratio of 0.67 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.
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)
RTX
4.32
Aerospace & Defense Industry
- Max
- 36.57
- Q3
- 19.90
- Median
- 7.04
- Q1
- 2.40
- Min
- -7.63
RTX’s Interest Coverage Ratio of 4.32 is positioned comfortably within the norm for the Aerospace & Defense 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 | RTX | TXT |
|---|---|---|
| Current Ratio (MRQ) | 1.01 | 1.70 |
| Quick Ratio (MRQ) | 0.75 | 0.71 |
| Debt-to-Equity Ratio (MRQ) | 0.67 | 0.50 |
| Interest Coverage Ratio (TTM) | 4.32 | 10.72 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
RTX
1.61%
Aerospace & Defense Industry
- Max
- 2.03%
- Q3
- 1.22%
- Median
- 0.43%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.61%, RTX offers a more attractive income stream than most of its peers in the Aerospace & Defense industry, signaling a strong commitment to shareholder returns.
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)
RTX
54.91%
Aerospace & Defense Industry
- Max
- 83.87%
- Q3
- 49.90%
- Median
- 16.48%
- Q1
- 0.00%
- Min
- 0.00%
RTX’s Dividend Payout Ratio of 54.91% 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.
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 | RTX | TXT |
|---|---|---|
| Dividend Yield (TTM) | 1.61% | 0.08% |
| Dividend Payout Ratio (TTM) | 54.91% | 1.85% |
Valuation
Price-to-Earnings Ratio (TTM)
RTX
34.20
Aerospace & Defense Industry
- Max
- 65.97
- Q3
- 54.11
- Median
- 34.53
- Q1
- 23.66
- Min
- 0.00
RTX’s P/E Ratio of 34.20 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.
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)
RTX
2.51
Aerospace & Defense Industry
- Max
- 8.07
- Q3
- 4.49
- Median
- 2.42
- Q1
- 1.39
- Min
- 0.00
RTX’s P/S Ratio of 2.51 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.
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)
RTX
3.13
Aerospace & Defense Industry
- Max
- 13.67
- Q3
- 7.92
- Median
- 4.65
- Q1
- 2.68
- Min
- 0.82
RTX’s P/B Ratio of 3.13 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.
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 | RTX | TXT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 34.20 | 17.34 |
| Price-to-Sales Ratio (TTM) | 2.51 | 1.01 |
| Price-to-Book Ratio (MRQ) | 3.13 | 1.95 |
| Price-to-Free Cash Flow Ratio (TTM) | 42.91 | 19.15 |