Raytheon Technologies Corp (RTX)vsTransdigm Group Incorporated (TDG)
RTX
Raytheon Technologies Corp
$198.16
-1.28%
INDUSTRIALS · Cap: $266.72B
TDG
Transdigm Group Incorporated
$1,177.39
-1.22%
INDUSTRIALS · Cap: $66.49B
Smart Verdict
WallStSmart Research — data-driven comparison
Raytheon Technologies Corp generates 873% more annual revenue ($88.60B vs $9.11B). TDG leads profitability with a 22.2% profit margin vs 7.6%. RTX appears more attractively valued with a PEG of 2.78. RTX earns a higher WallStSmart Score of 55/100 (C-).
RTX
Buy55
out of 100
Grade: C-
TDG
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-99.4%
Fair Value
$99.40
Current Price
$198.16
$98.76 premium
Margin of Safety
-527.5%
Fair Value
$211.34
Current Price
$1177.39
$966.05 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 3.2B in free cash flow
Strong operational efficiency at 45.6%
Conservative balance sheet, low leverage
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Areas to Watch
Distress zone — elevated risk
7.6% margin — thin
Expensive relative to growth rate
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
ROE of 0.0% — below average capital efficiency
Expensive relative to growth rate
Earnings declined 12.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : RTX
The strongest argument for RTX centers on Market Cap, Free Cash Flow. Revenue growth of 12.1% demonstrates continued momentum.
Bull Case : TDG
The strongest argument for TDG centers on Operating Margin, Debt/Equity, Market Cap. Profitability is solid with margins at 22.2% and operating margin at 45.6%. Revenue growth of 13.9% demonstrates continued momentum.
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.
Bear Case : TDG
The primary concerns for TDG are P/E Ratio, Return on Equity, PEG Ratio.
Key Dynamics to Monitor
RTX profiles as a value stock while TDG is a mature play — different risk/reward profiles.
TDG carries more volatility with a beta of 0.92 — expect wider price swings.
TDG is growing revenue faster at 13.9% — sustainability is the question.
RTX generates stronger free cash flow (3.2B), providing more financial flexibility.
Bottom Line
RTX scores higher overall (55/100 vs 53/100) and 12.1% 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.
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 →Transdigm Group Incorporated
INDUSTRIALS · AEROSPACE & DEFENSE · USA
TransDigm Group is a publicly traded aerospace manufacturing company headquartered in Cleveland, Ohio. TransDigm develops and manufactures engineered aerospace components.
Visit Website →Compare with Other AEROSPACE & DEFENSE Stocks
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