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TXT vs. VRT: A Head-to-Head Stock Comparison

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

Company Profile

SymbolTXTVRT
Company NameTextron Inc.Vertiv Holdings Co
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryAerospace & DefenseElectrical Equipment
Market Capitalization15.18 billion USD61.71 billion USD
ExchangeNYSENYSE
Listing DateFebruary 21, 1973August 2, 2018
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of TXT and VRT 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.

TXT vs. VRT: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolTXTVRT
5-Day Price Return2.09%15.61%
13-Week Price Return5.23%31.87%
26-Week Price Return12.40%111.73%
52-Week Price Return-3.72%62.42%
Month-to-Date Return5.40%7.11%
Year-to-Date Return10.46%42.23%
10-Day Avg. Volume1.47M7.86M
3-Month Avg. Volume1.49M7.05M
3-Month Volatility23.76%47.70%
Beta1.142.02

Profitability

Return on Equity (TTM)

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.

VRT

32.36%

Electrical Equipment Industry

Max
35.67%
Q3
23.64%
Median
11.74%
Q1
6.08%
Min
-4.39%

In the upper quartile for the Electrical Equipment industry, VRT’s Return on Equity of 32.36% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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

Net Profit Margin (TTM)

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.

VRT

8.93%

Electrical Equipment Industry

Max
20.60%
Q3
10.26%
Median
5.83%
Q1
2.92%
Min
-0.75%

VRT’s Net Profit Margin of 8.93% 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.

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

Operating Profit Margin (TTM)

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.

VRT

13.20%

Electrical Equipment Industry

Max
26.24%
Q3
14.53%
Median
7.97%
Q1
3.45%
Min
-5.64%

VRT’s Operating Profit Margin of 13.20% is around the midpoint for the Electrical Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

SymbolTXTVRT
Return on Equity (TTM)11.31%32.36%
Return on Assets (TTM)4.85%8.58%
Net Profit Margin (TTM)5.80%8.93%
Operating Profit Margin (TTM)5.50%13.20%
Gross Profit Margin (TTM)19.73%35.29%

Financial Strength

Current Ratio (MRQ)

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.

VRT

1.74

Electrical Equipment Industry

Max
3.31
Q3
2.09
Median
1.48
Q1
1.09
Min
0.85

VRT’s Current Ratio of 1.74 aligns with the median group of the Electrical Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

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

Debt-to-Equity Ratio (MRQ)

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.

VRT

0.93

Electrical Equipment Industry

Max
1.57
Q3
0.96
Median
0.57
Q1
0.30
Min
0.00

VRT’s Debt-to-Equity Ratio of 0.93 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.

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

Interest Coverage Ratio (TTM)

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.

VRT

2.36

Electrical Equipment Industry

Max
44.15
Q3
19.29
Median
9.38
Q1
0.98
Min
-19.47

VRT’s Interest Coverage Ratio of 2.36 is positioned comfortably within the norm for the Electrical Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

SymbolTXTVRT
Current Ratio (MRQ)1.701.74
Quick Ratio (MRQ)0.711.35
Debt-to-Equity Ratio (MRQ)0.500.93
Interest Coverage Ratio (TTM)10.722.36

Growth

Revenue Growth

TXT vs. VRT: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

TXT vs. VRT: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

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.

VRT

0.08%

Electrical Equipment Industry

Max
3.04%
Q3
1.58%
Median
1.00%
Q1
0.00%
Min
0.00%

VRT’s Dividend Yield of 0.08% is consistent with its peers in the Electrical Equipment industry, providing a dividend return that is standard for its sector.

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

Dividend Payout Ratio (TTM)

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.

VRT

6.39%

Electrical Equipment Industry

Max
165.68%
Q3
71.84%
Median
38.15%
Q1
0.00%
Min
0.00%

VRT’s Dividend Payout Ratio of 6.39% is within the typical range for the Electrical Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolTXTVRT
Dividend Yield (TTM)0.07%0.08%
Dividend Payout Ratio (TTM)1.85%6.39%

Valuation

Price-to-Earnings Ratio (TTM)

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.

VRT

75.98

Electrical Equipment Industry

Max
65.02
Q3
38.99
Median
27.41
Q1
19.88
Min
8.37

At 75.98, VRT’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Electrical Equipment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

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

Price-to-Sales Ratio (TTM)

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.

VRT

6.79

Electrical Equipment Industry

Max
7.01
Q3
4.03
Median
1.79
Q1
1.10
Min
0.47

VRT’s P/S Ratio of 6.79 is in the upper echelon for the Electrical Equipment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

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

Price-to-Book Ratio (MRQ)

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.

VRT

15.66

Electrical Equipment Industry

Max
10.97
Q3
5.57
Median
3.50
Q1
1.66
Min
0.64

At 15.66, VRT’s P/B Ratio is at an extreme premium to the Electrical Equipment 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.

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

Valuation at a Glance

SymbolTXTVRT
Price-to-Earnings Ratio (TTM)18.4775.98
Price-to-Sales Ratio (TTM)1.076.79
Price-to-Book Ratio (MRQ)1.9515.66
Price-to-Free Cash Flow Ratio (TTM)20.3949.68