AAR Corp (AIR)vsRaytheon Technologies Corp (RTX)
AIR
AAR Corp
$101.33
-7.22%
INDUSTRIALS · Cap: $4.01B
RTX
Raytheon Technologies Corp
$198.16
-1.28%
INDUSTRIALS · Cap: $266.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Raytheon Technologies Corp generates 2886% more annual revenue ($88.60B vs $2.97B). RTX leads profitability with a 7.6% profit margin vs 3.2%. AIR appears more attractively valued with a PEG of 2.40. AIR earns a higher WallStSmart Score of 57/100 (C).
AIR
Buy57
out of 100
Grade: C
RTX
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+5.2%
Fair Value
$119.81
Current Price
$101.33
$18.48 discount
Margin of Safety
-99.4%
Fair Value
$99.40
Current Price
$198.16
$98.76 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 92.0% YoY
Reasonable price relative to book value
15.9% revenue growth
Mega-cap, among the largest globally
Generating 3.2B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
ROE of 6.9% — below average capital efficiency
3.2% margin — thin
Distress zone — elevated risk
7.6% margin — thin
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : AIR
The strongest argument for AIR centers on EPS Growth, Price/Book, Revenue Growth. Revenue growth of 15.9% demonstrates continued momentum.
Bull Case : RTX
The strongest argument for RTX centers on Market Cap, Free Cash Flow. Revenue growth of 12.1% demonstrates continued momentum.
Bear Case : AIR
The primary concerns for AIR are PEG Ratio, P/E Ratio, Return on Equity. Thin 3.2% margins leave little buffer for downturns.
Bear Case : RTX
The primary concerns for RTX are Altman Z-Score, Profit Margin, PEG Ratio. A P/E of 40.0x leaves little room for execution misses.
Key Dynamics to Monitor
AIR profiles as a growth stock while RTX is a value play — different risk/reward profiles.
AIR carries more volatility with a beta of 1.20 — expect wider price swings.
AIR is growing revenue faster at 15.9% — sustainability is the question.
RTX generates stronger free cash flow (3.2B), providing more financial flexibility.
Bottom Line
AIR scores higher overall (57/100 vs 55/100) and 15.9% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
AAR Corp
INDUSTRIALS · AEROSPACE & DEFENSE · USA
AAR Corp. The company is headquartered in Wood Dale, Illinois.
Visit Website →Raytheon Technologies Corp
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.
Visit Website →Compare with Other AEROSPACE & DEFENSE Stocks
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