WallStSmart

Howmet Aerospace Inc (HWM)vsRaytheon Technologies Corp (RTX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Raytheon Technologies Corp generates 974% more annual revenue ($88.60B vs $8.25B). HWM leads profitability with a 18.3% profit margin vs 7.6%. HWM appears more attractively valued with a PEG of 0.80. HWM earns a higher WallStSmart Score of 69/100 (B-).

HWM

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 9.0Value: 4.7Quality: 5.0

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

HWMSignificantly Overvalued (-58.8%)

Margin of Safety

-58.8%

Fair Value

$145.34

Current Price

$232.94

$87.60 premium

UndervaluedFair: $145.34Overvalued
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

HWM5 strengths · Avg: 8.6/10
Return on EquityProfitability
30.4%10/10

Every $100 of equity generates 30 in profit

Market CapQuality
$97.38B9/10

Large-cap with strong market position

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Operating MarginProfitability
26.3%8/10

Strong operational efficiency at 26.3%

EPS GrowthGrowth
20.3%8/10

Earnings expanding 20.3% YoY

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

HWM2 concerns · Avg: 3.0/10
Price/BookValuation
17.5x4/10

Trading at 17.5x book value

P/E RatioValuation
65.4x2/10

Premium valuation, high expectations priced in

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 : HWM

The strongest argument for HWM centers on Return on Equity, Market Cap, PEG Ratio. Profitability is solid with margins at 18.3% and operating margin at 26.3%. Revenue growth of 14.6% 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 : HWM

The primary concerns for HWM are Price/Book, P/E Ratio. A P/E of 65.4x leaves little room for execution misses.

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

HWM profiles as a mature stock while RTX is a value play — different risk/reward profiles.

HWM carries more volatility with a beta of 1.19 — expect wider price swings.

HWM is growing revenue faster at 14.6% — sustainability is the question.

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

Bottom Line

HWM scores higher overall (69/100 vs 55/100), backed by strong 18.3% margins and 14.6% revenue growth. Both earn "Strong 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.

Howmet Aerospace Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Howmet Aerospace Inc. is an American aerospace company based in Pittsburgh, Pennsylvania. The company manufactures components for jet engines, fasteners and titanium structures for aerospace applications, and forged aluminum wheels for heavy trucks.

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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