WallStSmart

Raytheon Technologies Corp (RTX)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Raytheon Technologies Corp generates 40% more annual revenue ($88.60B vs $63.42B). RY leads profitability with a 33.1% profit margin vs 7.6%. RY appears more attractively valued with a PEG of 2.41. RY earns a higher WallStSmart Score of 68/100 (B-).

RTX

Buy

55

out of 100

Grade: C-

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

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 10.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RTXSignificantly Overvalued (-95.4%)

Margin of Safety

-95.4%

Fair Value

$99.80

Current Price

$195.00

$95.20 premium

UndervaluedFair: $99.80Overvalued
RYUndervalued (+44.3%)

Margin of Safety

+44.3%

Fair Value

$306.13

Current Price

$162.50

$143.63 discount

UndervaluedFair: $306.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RTX2 strengths · Avg: 9.0/10
Market CapQuality
$261.12B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$3.19B8/10

Generating 3.2B in free cash flow

RY6 strengths · Avg: 9.3/10
Market CapQuality
$225.89B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.1%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
46.2%10/10

Strong operational efficiency at 46.2%

Free Cash FlowQuality
$37.30B10/10

Generating 37.3B in free cash flow

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

RTX4 concerns · Avg: 3.3/10
P/E RatioValuation
39.0x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

PEG RatioValuation
2.782/10

Expensive relative to growth rate

RY1 concerns · Avg: 4.0/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : RTX

The strongest argument for RTX centers on Market Cap, Free Cash Flow. Revenue growth of 12.1% demonstrates continued momentum.

Bull Case : RY

The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.1% and operating margin at 46.2%.

Bear Case : RTX

The primary concerns for RTX are P/E Ratio, Altman Z-Score, Profit Margin.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

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

RY carries more volatility with a beta of 0.94 — expect wider price swings.

RTX is growing revenue faster at 12.1% — sustainability is the question.

RY generates stronger free cash flow (37.3B), providing more financial flexibility.

Bottom Line

RY scores higher overall (68/100 vs 55/100), backed by strong 33.1% margins. 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.

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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Royal Bank of Canada

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.

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