WallStSmart

Raytheon Technologies Corp (RTX)vsTextron Inc (TXT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Raytheon Technologies Corp generates 499% more annual revenue ($88.60B vs $14.80B). RTX leads profitability with a 7.6% profit margin vs 6.2%. TXT appears more attractively valued with a PEG of 1.16. TXT earns a higher WallStSmart Score of 67/100 (B-).

RTX

Buy

55

out of 100

Grade: C-

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

TXT

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 5.5Value: 10.0Quality: 6.5
Piotroski: 5/9
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
TXTUndervalued (+59.4%)

Margin of Safety

+59.4%

Fair Value

$239.62

Current Price

$90.71

$148.91 discount

UndervaluedFair: $239.62Overvalued

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

TXT4 strengths · Avg: 8.5/10
EPS GrowthGrowth
74.4%10/10

Earnings expanding 74.4% YoY

P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.6%8/10

15.6% revenue growth

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

TXT1 concerns · Avg: 3.0/10
Profit MarginProfitability
6.2%3/10

6.2% margin — thin

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 : TXT

The strongest argument for TXT centers on EPS Growth, P/E Ratio, Price/Book. Revenue growth of 15.6% demonstrates continued momentum. PEG of 1.16 suggests the stock is reasonably priced for its growth.

Bear Case : RTX

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

Bear Case : TXT

The primary concerns for TXT are Profit Margin.

Key Dynamics to Monitor

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

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

TXT is growing revenue faster at 15.6% — sustainability is the question.

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

Bottom Line

TXT scores higher overall (67/100 vs 55/100) and 15.6% 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.

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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Textron Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Textron Inc. is an American industrial conglomerate based in Providence, Rhode Island. Textron's subsidiaries include Arctic Cat, Bell Textron, Textron Aviation (which itself includes the Beechcraft, Hawker, and Cessna brands), and Lycoming Engines.

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