WallStSmart

GE Aerospace (GE)vsRaytheon Technologies Corp (RTX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Raytheon Technologies Corp generates 93% more annual revenue ($88.60B vs $45.85B). GE leads profitability with a 19.0% profit margin vs 7.6%. RTX appears more attractively valued with a PEG of 2.89. GE earns a higher WallStSmart Score of 65/100 (C+).

GE

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 6.7Quality: 5.3
Piotroski: 4/9Altman Z: 1.69

RTX

Buy

55

out of 100

Grade: C-

Growth: 6.0Profit: 5.5Value: 4.7Quality: 7.0
Piotroski: 6/9Altman Z: 1.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GEUndervalued (+22.7%)

Margin of Safety

+22.7%

Fair Value

$377.21

Current Price

$300.96

$76.25 discount

UndervaluedFair: $377.21Overvalued
RTXSignificantly Overvalued (-101.1%)

Margin of Safety

-101.1%

Fair Value

$99.80

Current Price

$204.56

$104.76 premium

UndervaluedFair: $99.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GE5 strengths · Avg: 8.8/10
Market CapQuality
$320.66B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
44.7%10/10

Every $100 of equity generates 45 in profit

Revenue GrowthGrowth
17.6%8/10

17.6% revenue growth

EPS GrowthGrowth
37.4%8/10

Earnings expanding 37.4% YoY

Free Cash FlowQuality
$1.79B8/10

Generating 1.8B in free cash flow

RTX2 strengths · Avg: 9.0/10
Market CapQuality
$277.35B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$3.19B8/10

Generating 3.2B in free cash flow

Areas to Watch

GE4 concerns · Avg: 3.5/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
16.9x4/10

Trading at 16.9x book value

Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

PEG RatioValuation
5.182/10

Expensive relative to growth rate

RTX4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

PEG RatioValuation
2.892/10

Expensive relative to growth rate

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : GE

The strongest argument for GE centers on Market Cap, Return on Equity, Revenue Growth. Profitability is solid with margins at 19.0% and operating margin at 19.6%. Revenue growth of 17.6% 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 : GE

The primary concerns for GE are P/E Ratio, Price/Book, Altman Z-Score.

Bear Case : RTX

The primary concerns for RTX are Altman Z-Score, Profit Margin, PEG Ratio. A P/E of 41.5x leaves little room for execution misses.

Key Dynamics to Monitor

GE profiles as a growth stock while RTX is a value play — different risk/reward profiles.

GE carries more volatility with a beta of 1.37 — expect wider price swings.

GE is growing revenue faster at 17.6% — sustainability is the question.

RTX generates stronger free cash flow (3.2B), providing more financial flexibility.

Bottom Line

GE scores higher overall (65/100 vs 55/100), backed by strong 19.0% margins and 17.6% 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.

GE Aerospace

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Electric Company (GE) is an American multinational conglomerate incorporated in New York City and headquartered in Boston. As of 2018, the company operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing and venture capital and finance.

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.

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