Aerospace & Defense
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BA vs RTX
Revenue, margins, valuation, and 5-year total return — side by side.
Aerospace & Defense
BA vs RTX — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Aerospace & Defense | Aerospace & Defense |
| Market Cap | $176.88B | $232.80B |
| Revenue (TTM) | $92.18B | $90.37B |
| Net Income (TTM) | $2.27B | $7.26B |
| Gross Margin | 4.8% | 20.2% |
| Operating Margin | -5.9% | 10.4% |
| Forward P/E | 4835.8x | 25.0x |
| Total Debt | $54.43B | $39.51B |
| Cash & Equiv. | $10.92B | $7.43B |
BA vs RTX — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| The Boeing Company (BA) | 100 | 153.8 | +53.8% |
| RTX Corporation (RTX) | 100 | 267.9 | +167.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: BA vs RTX
Each card shows where this stock fits in a portfolio — not just who wins on paper.
BA is the clearest fit if your priority is growth exposure.
- Rev growth 34.5%, EPS growth 113.5%, 3Y rev CAGR 10.3%
- 34.5% revenue growth vs RTX's 9.7%
RTX carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 4 yrs, beta 0.51, yield 1.5%
- 227.4% 10Y total return vs BA's 89.6%
- Lower volatility, beta 0.51, Low D/E 58.8%, current ratio 1.03x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 34.5% revenue growth vs RTX's 9.7% | |
| Value | Lower P/E (25.0x vs 4835.8x) | |
| Quality / Margins | 8.0% margin vs BA's 2.5% | |
| Stability / Safety | Beta 0.51 vs BA's 0.97, lower leverage | |
| Dividends | 1.5% yield, 4-year raise streak, vs BA's 0.2% | |
| Momentum (1Y) | +36.6% vs BA's +20.3% | |
| Efficiency (ROA) | 4.3% ROA vs BA's 1.4%, ROIC 6.7% vs -9.5% |
BA vs RTX — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
BA vs RTX — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
RTX leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
BA and RTX operate at a comparable scale, with $92.2B and $90.4B in trailing revenue. RTX is the more profitable business, keeping 8.0% of every revenue dollar as net income compared to BA's 2.5%. On growth, BA holds the edge at +14.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $92.2B | $90.4B |
| EBITDAEarnings before interest/tax | -$3.4B | $13.8B |
| Net IncomeAfter-tax profit | $2.3B | $7.3B |
| Free Cash FlowCash after capex | -$1.0B | $8.4B |
| Gross MarginGross profit ÷ Revenue | +4.8% | +20.2% |
| Operating MarginEBIT ÷ Revenue | -5.9% | +10.4% |
| Net MarginNet income ÷ Revenue | +2.5% | +8.0% |
| FCF MarginFCF ÷ Revenue | -1.1% | +9.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +14.0% | +8.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +31.3% | +32.5% |
Valuation Metrics
RTX leads this category, winning 3 of 4 comparable metrics.
Valuation Metrics
At 34.9x trailing earnings, RTX trades at a 61% valuation discount to BA's 90.5x P/E.
| Metric | ||
|---|---|---|
| Market CapShares × price | $176.9B | $232.8B |
| Enterprise ValueMkt cap + debt − cash | $220.4B | $264.9B |
| Trailing P/EPrice ÷ TTM EPS | 90.48x | 34.85x |
| Forward P/EPrice ÷ next-FY EPS est. | 4835.78x | 24.98x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | 20.55x |
| Price / SalesMarket cap ÷ Revenue | 1.98x | 2.63x |
| Price / BookPrice ÷ Book value/share | 31.34x | 3.49x |
| Price / FCFMarket cap ÷ FCF | — | 29.32x |
Profitability & Efficiency
RTX leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
BA delivers a 2.9% return on equity — every $100 of shareholder capital generates $3 in annual profit, vs $11 for RTX. RTX carries lower financial leverage with a 0.59x debt-to-equity ratio, signaling a more conservative balance sheet compared to BA's 9.97x. On the Piotroski fundamental quality scale (0–9), RTX scores 8/9 vs BA's 6/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +2.9% | +10.9% |
| ROA (TTM)Return on assets | +1.4% | +4.3% |
| ROICReturn on invested capital | -9.5% | +6.7% |
| ROCEReturn on capital employed | -9.1% | +7.9% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 8 |
| Debt / EquityFinancial leverage | 9.97x | 0.59x |
| Net DebtTotal debt minus cash | $43.5B | $32.1B |
| Cash & Equiv.Liquid assets | $10.9B | $7.4B |
| Total DebtShort + long-term debt | $54.4B | $39.5B |
| Interest CoverageEBIT ÷ Interest expense | 1.89x | 5.58x |
Total Returns (Dividends Reinvested)
RTX leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in RTX five years ago would be worth $21,955 today (with dividends reinvested), compared to $9,833 for BA. Over the past 12 months, RTX leads with a +36.6% total return vs BA's +20.3%. The 3-year compound annual growth rate (CAGR) favors RTX at 23.2% vs BA's 4.2% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -1.5% | -7.3% |
| 1-Year ReturnPast 12 months | +20.3% | +36.6% |
| 3-Year ReturnCumulative with dividends | +13.1% | +86.9% |
| 5-Year ReturnCumulative with dividends | -1.7% | +119.6% |
| 10-Year ReturnCumulative with dividends | +89.6% | +227.4% |
| CAGR (3Y)Annualised 3-year return | +4.2% | +23.2% |
Risk & Volatility
Evenly matched — BA and RTX each lead in 1 of 2 comparable metrics.
Risk & Volatility
RTX is the less volatile stock with a 0.51 beta — it tends to amplify market swings less than BA's 0.97 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. BA currently trades 88.2% from its 52-week high vs RTX's 80.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.97x | 0.51x |
| 52-Week HighHighest price in past year | $254.35 | $214.50 |
| 52-Week LowLowest price in past year | $176.77 | $126.03 |
| % of 52W HighCurrent price vs 52-week peak | +88.2% | +80.6% |
| RSI (14)Momentum oscillator 0–100 | 49.3 | 29.7 |
| Avg Volume (50D)Average daily shares traded | 6.4M | 5.4M |
Analyst Outlook
RTX leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates BA as "Buy" and RTX as "Buy". Consensus price targets imply 30.1% upside for RTX (target: $225) vs 17.5% for BA (target: $264). For income investors, RTX offers the higher dividend yield at 1.52% vs BA's 0.19%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $263.67 | $224.89 |
| # AnalystsCovering analysts | 54 | 26 |
| Dividend YieldAnnual dividend ÷ price | +0.2% | +1.5% |
| Dividend StreakConsecutive years of raises | 0 | 4 |
| Dividend / ShareAnnual DPS | $0.43 | $2.63 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.0% |
RTX leads in 5 of 6 categories — strongest in Income & Cash Flow and Valuation Metrics. 1 category is tied.
BA vs RTX: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is BA or RTX a better buy right now?
For growth investors, The Boeing Company (BA) is the stronger pick with 34.
5% revenue growth year-over-year, versus 9. 7% for RTX Corporation (RTX). RTX Corporation (RTX) offers the better valuation at 34. 9x trailing P/E (25. 0x forward), making it the more compelling value choice. Analysts rate The Boeing Company (BA) a "Buy" — based on 54 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — BA or RTX?
On trailing P/E, RTX Corporation (RTX) is the cheapest at 34.
9x versus The Boeing Company at 90. 5x. On forward P/E, RTX Corporation is actually cheaper at 25. 0x.
03Which is the better long-term investment — BA or RTX?
Over the past 5 years, RTX Corporation (RTX) delivered a total return of +119.
6%, compared to -1. 7% for The Boeing Company (BA). Over 10 years, the gap is even starker: RTX returned +227. 4% versus BA's +89. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — BA or RTX?
By beta (market sensitivity over 5 years), RTX Corporation (RTX) is the lower-risk stock at 0.
51β versus The Boeing Company's 0. 97β — meaning BA is approximately 90% more volatile than RTX relative to the S&P 500. On balance sheet safety, RTX Corporation (RTX) carries a lower debt/equity ratio of 59% versus 10% for The Boeing Company — giving it more financial flexibility in a downturn.
05Which is growing faster — BA or RTX?
By revenue growth (latest reported year), The Boeing Company (BA) is pulling ahead at 34.
5% versus 9. 7% for RTX Corporation (RTX). On earnings-per-share growth, the picture is similar: The Boeing Company grew EPS 113. 5% year-over-year, compared to 39. 7% for RTX Corporation. Over a 3-year CAGR, BA leads at 10. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — BA or RTX?
RTX Corporation (RTX) is the more profitable company, earning 7.
6% net margin versus 2. 5% for The Boeing Company — meaning it keeps 7. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RTX leads at 10. 0% versus -6. 1% for BA. At the gross margin level — before operating expenses — RTX leads at 20. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is BA or RTX more undervalued right now?
On forward earnings alone, RTX Corporation (RTX) trades at 25.
0x forward P/E versus 4835. 8x for The Boeing Company — 4810. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RTX: 30. 1% to $224. 89.
08Which pays a better dividend — BA or RTX?
All stocks in this comparison pay dividends.
RTX Corporation (RTX) offers the highest yield at 1. 5%, versus 0. 2% for The Boeing Company (BA).
09Is BA or RTX better for a retirement portfolio?
For long-horizon retirement investors, RTX Corporation (RTX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
51), 1. 5% yield, +227. 4% 10Y return). Both have compounded well over 10 years (RTX: +227. 4%, BA: +89. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between BA and RTX?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: BA is a mid-cap high-growth stock; RTX is a large-cap quality compounder stock. RTX pays a dividend while BA does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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