Aerospace & Defense
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LHX vs RTX
Revenue, margins, valuation, and 5-year total return — side by side.
Aerospace & Defense
LHX vs RTX — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Aerospace & Defense | Aerospace & Defense |
| Market Cap | $56.45B | $238.01B |
| Revenue (TTM) | $22.48B | $90.37B |
| Net Income (TTM) | $1.73B | $7.26B |
| Gross Margin | 24.5% | 20.2% |
| Operating Margin | 10.0% | 10.4% |
| Forward P/E | 26.1x | 25.5x |
| Total Debt | $10.44B | $39.51B |
| Cash & Equiv. | $1.07B | $7.43B |
LHX vs RTX — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| L3Harris Technologi… (LHX) | 100 | 151.5 | +51.5% |
| RTX Corporation (RTX) | 100 | 273.9 | +173.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: LHX vs RTX
Each card shows where this stock fits in a portfolio — not just who wins on paper.
LHX is the clearest fit if your priority is income & stability and long-term compounding.
- Dividend streak 6 yrs, beta 0.39, yield 1.6%
- 353.9% 10Y total return vs RTX's 231.2%
- Lower volatility, beta 0.39, Low D/E 53.2%, current ratio 1.19x
RTX carries the broadest edge in this set and is the clearest fit for growth exposure.
- Rev growth 9.7%, EPS growth 39.7%, 3Y rev CAGR 9.7%
- 9.7% revenue growth vs LHX's 2.5%
- Lower P/E (25.5x vs 26.1x)
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 9.7% revenue growth vs LHX's 2.5% | |
| Value | Lower P/E (25.5x vs 26.1x) | |
| Quality / Margins | 8.0% margin vs LHX's 7.7% | |
| Stability / Safety | Beta 0.39 vs RTX's 0.51, lower leverage | |
| Dividends | 1.6% yield, 6-year raise streak, vs RTX's 1.5% | |
| Momentum (1Y) | +42.0% vs RTX's +40.0% | |
| Efficiency (ROA) | 4.3% ROA vs LHX's 4.2%, ROIC 6.7% vs 5.4% |
LHX vs RTX — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
LHX 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)
LHX leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
RTX is the larger business by revenue, generating $90.4B annually — 4.0x LHX's $22.5B. Profitability is closely matched — net margins range from 8.0% (RTX) to 7.7% (LHX). On growth, LHX holds the edge at +11.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $22.5B | $90.4B |
| EBITDAEarnings before interest/tax | $3.3B | $13.8B |
| Net IncomeAfter-tax profit | $1.7B | $7.3B |
| Free Cash FlowCash after capex | $2.6B | $8.4B |
| Gross MarginGross profit ÷ Revenue | +24.5% | +20.2% |
| Operating MarginEBIT ÷ Revenue | +10.0% | +10.4% |
| Net MarginNet income ÷ Revenue | +7.7% | +8.0% |
| FCF MarginFCF ÷ Revenue | +11.5% | +9.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +11.9% | +8.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +33.3% | +32.5% |
Valuation Metrics
LHX leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 35.4x trailing earnings, LHX trades at a 1% valuation discount to RTX's 35.6x P/E. On an enterprise value basis, LHX's 19.3x EV/EBITDA is more attractive than RTX's 21.0x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $56.4B | $238.0B |
| Enterprise ValueMkt cap + debt − cash | $65.8B | $270.1B |
| Trailing P/EPrice ÷ TTM EPS | 35.43x | 35.63x |
| Forward P/EPrice ÷ next-FY EPS est. | 26.09x | 25.54x |
| PEG RatioP/E ÷ EPS growth rate | 3.38x | — |
| EV / EBITDAEnterprise value multiple | 19.25x | 20.96x |
| Price / SalesMarket cap ÷ Revenue | 2.58x | 2.69x |
| Price / BookPrice ÷ Book value/share | 2.90x | 3.57x |
| Price / FCFMarket cap ÷ FCF | 21.05x | 29.98x |
Profitability & Efficiency
RTX leads this category, winning 5 of 9 comparable metrics.
Profitability & Efficiency
RTX delivers a 10.9% return on equity — every $100 of shareholder capital generates $11 in annual profit, vs $9 for LHX. LHX carries lower financial leverage with a 0.53x debt-to-equity ratio, signaling a more conservative balance sheet compared to RTX's 0.59x. On the Piotroski fundamental quality scale (0–9), LHX scores 9/9 vs RTX's 8/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +8.9% | +10.9% |
| ROA (TTM)Return on assets | +4.2% | +4.3% |
| ROICReturn on invested capital | +5.4% | +6.7% |
| ROCEReturn on capital employed | +6.4% | +7.9% |
| Piotroski ScoreFundamental quality 0–9 | 9 | 8 |
| Debt / EquityFinancial leverage | 0.53x | 0.59x |
| Net DebtTotal debt minus cash | $9.4B | $32.1B |
| Cash & Equiv.Liquid assets | $1.1B | $7.4B |
| Total DebtShort + long-term debt | $10.4B | $39.5B |
| Interest CoverageEBIT ÷ Interest expense | 4.41x | 5.58x |
Total Returns (Dividends Reinvested)
Evenly matched — LHX and RTX each lead in 3 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in RTX five years ago would be worth $22,270 today (with dividends reinvested), compared to $14,977 for LHX. Over the past 12 months, LHX leads with a +42.0% total return vs RTX's +40.0%. The 3-year compound annual growth rate (CAGR) favors RTX at 24.5% vs LHX's 19.1% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -0.3% | -5.2% |
| 1-Year ReturnPast 12 months | +42.0% | +40.0% |
| 3-Year ReturnCumulative with dividends | +68.9% | +92.9% |
| 5-Year ReturnCumulative with dividends | +49.8% | +122.7% |
| 10-Year ReturnCumulative with dividends | +353.9% | +231.2% |
| CAGR (3Y)Annualised 3-year return | +19.1% | +24.5% |
Risk & Volatility
Evenly matched — LHX and RTX each lead in 1 of 2 comparable metrics.
Risk & Volatility
LHX is the less volatile stock with a 0.39 beta — it tends to amplify market swings less than RTX's 0.51 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.39x | 0.51x |
| 52-Week HighHighest price in past year | $379.23 | $214.50 |
| 52-Week LowLowest price in past year | $214.10 | $126.03 |
| % of 52W HighCurrent price vs 52-week peak | +79.7% | +82.4% |
| RSI (14)Momentum oscillator 0–100 | 24.4 | 29.7 |
| Avg Volume (50D)Average daily shares traded | 1.4M | 5.3M |
Analyst Outlook
LHX leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates LHX as "Buy" and RTX as "Buy". Consensus price targets imply 27.2% upside for RTX (target: $225) vs 16.6% for LHX (target: $352). For income investors, LHX offers the higher dividend yield at 1.59% vs RTX's 1.49%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $352.25 | $224.89 |
| # AnalystsCovering analysts | 32 | 26 |
| Dividend YieldAnnual dividend ÷ price | +1.6% | +1.5% |
| Dividend StreakConsecutive years of raises | 6 | 4 |
| Dividend / ShareAnnual DPS | $4.79 | $2.63 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.0% | +0.0% |
LHX leads in 3 of 6 categories (Income & Cash Flow, Valuation Metrics). RTX leads in 1 (Profitability & Efficiency). 2 tied.
LHX vs RTX: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is LHX or RTX a better buy right now?
For growth investors, RTX Corporation (RTX) is the stronger pick with 9.
7% revenue growth year-over-year, versus 2. 5% for L3Harris Technologies, Inc. (LHX). L3Harris Technologies, Inc. (LHX) offers the better valuation at 35. 4x trailing P/E (26. 1x forward), making it the more compelling value choice. Analysts rate L3Harris Technologies, Inc. (LHX) a "Buy" — based on 32 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 — LHX or RTX?
On trailing P/E, L3Harris Technologies, Inc.
(LHX) is the cheapest at 35. 4x versus RTX Corporation at 35. 6x. On forward P/E, RTX Corporation is actually cheaper at 25. 5x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — LHX or RTX?
Over the past 5 years, RTX Corporation (RTX) delivered a total return of +122.
7%, compared to +49. 8% for L3Harris Technologies, Inc. (LHX). Over 10 years, the gap is even starker: LHX returned +353. 9% versus RTX's +231. 2%. 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 — LHX or RTX?
By beta (market sensitivity over 5 years), L3Harris Technologies, Inc.
(LHX) is the lower-risk stock at 0. 39β versus RTX Corporation's 0. 51β — meaning RTX is approximately 31% more volatile than LHX relative to the S&P 500. On balance sheet safety, L3Harris Technologies, Inc. (LHX) carries a lower debt/equity ratio of 53% versus 59% for RTX Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — LHX or RTX?
By revenue growth (latest reported year), RTX Corporation (RTX) is pulling ahead at 9.
7% versus 2. 5% for L3Harris Technologies, Inc. (LHX). On earnings-per-share growth, the picture is similar: RTX Corporation grew EPS 39. 7% year-over-year, compared to 8. 4% for L3Harris Technologies, Inc.. Over a 3-year CAGR, RTX leads at 9. 7% 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 — LHX or RTX?
RTX Corporation (RTX) is the more profitable company, earning 7.
6% net margin versus 7. 3% for L3Harris Technologies, Inc. — meaning it keeps 7. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LHX leads at 10. 0% versus 10. 0% for RTX. At the gross margin level — before operating expenses — LHX leads at 25. 7%, 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 LHX or RTX more undervalued right now?
On forward earnings alone, RTX Corporation (RTX) trades at 25.
5x forward P/E versus 26. 1x for L3Harris Technologies, Inc. — 0. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RTX: 27. 2% to $224. 89.
08Which pays a better dividend — LHX or RTX?
All stocks in this comparison pay dividends.
L3Harris Technologies, Inc. (LHX) offers the highest yield at 1. 6%, versus 1. 5% for RTX Corporation (RTX).
09Is LHX or RTX better for a retirement portfolio?
For long-horizon retirement investors, L3Harris Technologies, Inc.
(LHX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 39), 1. 6% yield, +353. 9% 10Y return). Both have compounded well over 10 years (LHX: +353. 9%, RTX: +231. 2%), 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 LHX 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.
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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