TRI vs. TXT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at TRI and TXT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | TRI | TXT |
|---|---|---|
| Company Name | Thomson Reuters Corporation | Textron Inc. |
| Country | Canada | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Professional Services | Aerospace & Defense |
| Market Capitalization | 70.72 billion USD | 15.18 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | June 12, 2002 | February 21, 1973 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of TRI 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 | TRI | TXT |
|---|---|---|
| 5-Day Price Return | -1.45% | 2.09% |
| 13-Week Price Return | -20.30% | 5.23% |
| 26-Week Price Return | -11.99% | 12.40% |
| 52-Week Price Return | -6.32% | -3.72% |
| Month-to-Date Return | -11.40% | 5.40% |
| Year-to-Date Return | -6.38% | 10.46% |
| 10-Day Avg. Volume | 0.71M | 1.47M |
| 3-Month Avg. Volume | 0.43M | 1.49M |
| 3-Month Volatility | 32.21% | 23.76% |
| Beta | 0.36 | 1.14 |
Profitability
Return on Equity (TTM)
TRI
13.40%
Professional Services Industry
- Max
- 68.01%
- Q3
- 35.32%
- Median
- 21.92%
- Q1
- 11.67%
- Min
- -20.25%
TRI’s Return on Equity of 13.40% is on par with the norm for the Professional Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
TXT
11.31%
Aerospace & Defense Industry
- Max
- 37.11%
- Q3
- 20.14%
- Median
- 11.72%
- Q1
- 6.30%
- 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)
TRI
22.34%
Professional Services Industry
- Max
- 31.75%
- Q3
- 15.50%
- Median
- 8.95%
- Q1
- 4.51%
- Min
- 0.35%
A Net Profit Margin of 22.34% places TRI in the upper quartile for the Professional Services industry, signifying strong profitability and more effective cost management than most of its peers.
TXT
5.80%
Aerospace & Defense Industry
- Max
- 13.66%
- Q3
- 8.61%
- Median
- 6.59%
- Q1
- 4.92%
- Min
- 1.01%
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)
TRI
29.19%
Professional Services Industry
- Max
- 30.62%
- Q3
- 19.06%
- Median
- 13.60%
- Q1
- 8.60%
- Min
- -2.18%
An Operating Profit Margin of 29.19% places TRI in the upper quartile for the Professional Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
TXT
5.50%
Aerospace & Defense Industry
- Max
- 22.35%
- Q3
- 12.83%
- Median
- 9.29%
- Q1
- 6.38%
- Min
- -2.15%
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 | TRI | TXT |
|---|---|---|
| Return on Equity (TTM) | 13.40% | 11.31% |
| Return on Assets (TTM) | 8.92% | 4.85% |
| Net Profit Margin (TTM) | 22.34% | 5.80% |
| Operating Profit Margin (TTM) | 29.19% | 5.50% |
| Gross Profit Margin (TTM) | 95.36% | 19.73% |
Financial Strength
Current Ratio (MRQ)
TRI
0.79
Professional Services Industry
- Max
- 2.28
- Q3
- 1.75
- Median
- 1.34
- Q1
- 1.10
- Min
- 0.47
TRI’s Current Ratio of 0.79 falls into the lower quartile for the Professional Services 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
- 3.35
- Q3
- 2.03
- Median
- 1.24
- Q1
- 1.04
- Min
- 0.77
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)
TRI
0.17
Professional Services Industry
- Max
- 2.93
- Q3
- 1.45
- Median
- 0.98
- Q1
- 0.45
- Min
- 0.00
Falling into the lower quartile for the Professional Services industry, TRI’s Debt-to-Equity Ratio of 0.17 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
TXT
0.50
Aerospace & Defense Industry
- Max
- 1.72
- Q3
- 0.96
- Median
- 0.63
- Q1
- 0.37
- Min
- 0.03
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)
TRI
17.23
Professional Services Industry
- Max
- 39.45
- Q3
- 20.41
- Median
- 11.64
- Q1
- 5.46
- Min
- -1.21
TRI’s Interest Coverage Ratio of 17.23 is positioned comfortably within the norm for the Professional Services industry, indicating a standard and healthy capacity to cover its interest payments.
TXT
10.72
Aerospace & Defense Industry
- Max
- 36.57
- Q3
- 19.08
- Median
- 7.25
- Q1
- 2.65
- 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 | TRI | TXT |
|---|---|---|
| Current Ratio (MRQ) | 0.79 | 1.70 |
| Quick Ratio (MRQ) | 0.64 | 0.71 |
| Debt-to-Equity Ratio (MRQ) | 0.17 | 0.50 |
| Interest Coverage Ratio (TTM) | 17.23 | 10.72 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
TRI
1.42%
Professional Services Industry
- Max
- 4.83%
- Q3
- 2.44%
- Median
- 1.52%
- Q1
- 0.52%
- Min
- 0.00%
TRI’s Dividend Yield of 1.42% is consistent with its peers in the Professional Services industry, providing a dividend return that is standard for its sector.
TXT
0.07%
Aerospace & Defense Industry
- Max
- 2.72%
- Q3
- 1.45%
- Median
- 0.48%
- Q1
- 0.08%
- Min
- 0.00%
TXT’s Dividend Yield of 0.07% is in the lower quartile for the Aerospace & Defense industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio (TTM)
TRI
60.86%
Professional Services Industry
- Max
- 128.51%
- Q3
- 69.03%
- Median
- 47.00%
- Q1
- 18.05%
- Min
- 0.00%
TRI’s Dividend Payout Ratio of 60.86% is within the typical range for the Professional Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
TXT
1.85%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 50.43%
- Median
- 17.11%
- Q1
- 0.46%
- 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 | TRI | TXT |
|---|---|---|
| Dividend Yield (TTM) | 1.42% | 0.07% |
| Dividend Payout Ratio (TTM) | 60.86% | 1.85% |
Valuation
Price-to-Earnings Ratio (TTM)
TRI
42.74
Professional Services Industry
- Max
- 52.60
- Q3
- 33.83
- Median
- 24.95
- Q1
- 17.59
- Min
- 7.96
A P/E Ratio of 42.74 places TRI in the upper quartile for the Professional Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
TXT
18.47
Aerospace & Defense Industry
- Max
- 67.20
- Q3
- 55.74
- Median
- 33.28
- Q1
- 27.49
- Min
- 15.02
In the lower quartile for the Aerospace & Defense industry, TXT’s P/E Ratio of 18.47 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
TRI
9.55
Professional Services Industry
- Max
- 8.27
- Q3
- 4.40
- Median
- 2.09
- Q1
- 0.99
- Min
- 0.17
With a P/S Ratio of 9.55, TRI trades at a valuation that eclipses even the highest in the Professional Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
TXT
1.07
Aerospace & Defense Industry
- Max
- 9.06
- Q3
- 4.87
- Median
- 2.47
- Q1
- 1.61
- Min
- 0.33
In the lower quartile for the Aerospace & Defense industry, TXT’s P/S Ratio of 1.07 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)
TRI
7.02
Professional Services Industry
- Max
- 18.75
- Q3
- 9.53
- Median
- 5.88
- Q1
- 2.95
- Min
- 0.59
TRI’s P/B Ratio of 7.02 is within the conventional range for the Professional Services 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
- 14.90
- Q3
- 8.93
- Median
- 4.70
- Q1
- 3.03
- Min
- 0.83
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 | TRI | TXT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 42.74 | 18.47 |
| Price-to-Sales Ratio (TTM) | 9.55 | 1.07 |
| Price-to-Book Ratio (MRQ) | 7.02 | 1.95 |
| Price-to-Free Cash Flow Ratio (TTM) | 37.03 | 20.39 |