Aerospace & Defense
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RTX vs HII
Revenue, margins, valuation, and 5-year total return — side by side.
Aerospace & Defense
RTX vs HII — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Aerospace & Defense | Aerospace & Defense |
| Market Cap | $238.01B | $12.58B |
| Revenue (TTM) | $90.37B | $12.85B |
| Net Income (TTM) | $7.26B | $605M |
| Gross Margin | 20.2% | 12.4% |
| Operating Margin | 10.4% | 4.9% |
| Forward P/E | 25.5x | 18.4x |
| Total Debt | $39.51B | $3.15B |
| Cash & Equiv. | $7.43B | $774M |
RTX vs HII — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| RTX Corporation (RTX) | 100 | 273.9 | +173.9% |
| Huntington Ingalls … (HII) | 100 | 159.9 | +59.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RTX vs HII
Each card shows where this stock fits in a portfolio — not just who wins on paper.
RTX carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 9.7%, EPS growth 39.7%, 3Y rev CAGR 9.7%
- 231.2% 10Y total return vs HII's 132.6%
- Lower volatility, beta 0.51, Low D/E 58.8%, current ratio 1.03x
HII is the clearest fit if your priority is income & stability and defensive.
- Dividend streak 13 yrs, beta 0.69, yield 1.7%
- Beta 0.69, yield 1.7%, current ratio 1.13x
- Lower P/E (18.4x vs 25.5x)
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 9.7% revenue growth vs HII's 8.2% | |
| Value | Lower P/E (18.4x vs 25.5x) | |
| Quality / Margins | 8.0% margin vs HII's 4.7% | |
| Stability / Safety | Beta 0.51 vs HII's 0.69, lower leverage | |
| Dividends | 1.7% yield, 13-year raise streak, vs RTX's 1.5% | |
| Momentum (1Y) | +40.0% vs HII's +39.5% | |
| Efficiency (ROA) | 4.9% ROA vs RTX's 4.3%, ROIC 6.2% vs 6.7% |
RTX vs HII — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
RTX vs HII — 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)
RTX is the larger business by revenue, generating $90.4B annually — 7.0x HII's $12.8B. Profitability is closely matched — net margins range from 8.0% (RTX) to 4.7% (HII). On growth, HII holds the edge at +13.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $90.4B | $12.8B |
| EBITDAEarnings before interest/tax | $13.8B | $953M |
| Net IncomeAfter-tax profit | $7.3B | $605M |
| Free Cash FlowCash after capex | $8.4B | $1.1B |
| Gross MarginGross profit ÷ Revenue | +20.2% | +12.4% |
| Operating MarginEBIT ÷ Revenue | +10.4% | +4.9% |
| Net MarginNet income ÷ Revenue | +8.0% | +4.7% |
| FCF MarginFCF ÷ Revenue | +9.2% | +8.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +8.7% | +13.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +32.5% | 0.0% |
Valuation Metrics
HII leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 20.8x trailing earnings, HII trades at a 42% valuation discount to RTX's 35.6x P/E. On an enterprise value basis, HII's 16.0x EV/EBITDA is more attractive than RTX's 21.0x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $238.0B | $12.6B |
| Enterprise ValueMkt cap + debt − cash | $270.1B | $15.0B |
| Trailing P/EPrice ÷ TTM EPS | 35.63x | 20.76x |
| Forward P/EPrice ÷ next-FY EPS est. | 25.54x | 18.43x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 20.96x | 15.96x |
| Price / SalesMarket cap ÷ Revenue | 2.69x | 1.01x |
| Price / BookPrice ÷ Book value/share | 3.57x | 2.48x |
| Price / FCFMarket cap ÷ FCF | 29.98x | 15.85x |
Profitability & Efficiency
HII leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
HII delivers a 12.0% return on equity — every $100 of shareholder capital generates $12 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 HII's 0.62x. On the Piotroski fundamental quality scale (0–9), HII scores 9/9 vs RTX's 8/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +10.9% | +12.0% |
| ROA (TTM)Return on assets | +4.3% | +4.9% |
| ROICReturn on invested capital | +6.7% | +6.2% |
| ROCEReturn on capital employed | +7.9% | +6.4% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 9 |
| Debt / EquityFinancial leverage | 0.59x | 0.62x |
| Net DebtTotal debt minus cash | $32.1B | $2.4B |
| Cash & Equiv.Liquid assets | $7.4B | $774M |
| Total DebtShort + long-term debt | $39.5B | $3.1B |
| Interest CoverageEBIT ÷ Interest expense | 5.58x | 8.86x |
Total Returns (Dividends Reinvested)
RTX leads this category, winning 6 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 $15,797 for HII. Over the past 12 months, RTX leads with a +40.0% total return vs HII's +39.5%. The 3-year compound annual growth rate (CAGR) favors RTX at 24.5% vs HII's 20.0% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -5.2% | -8.2% |
| 1-Year ReturnPast 12 months | +40.0% | +39.5% |
| 3-Year ReturnCumulative with dividends | +92.9% | +72.7% |
| 5-Year ReturnCumulative with dividends | +122.7% | +58.0% |
| 10-Year ReturnCumulative with dividends | +231.2% | +132.6% |
| CAGR (3Y)Annualised 3-year return | +24.5% | +20.0% |
Risk & Volatility
RTX leads this category, winning 2 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 HII's 0.69 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. RTX currently trades 82.4% from its 52-week high vs HII's 69.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.51x | 0.69x |
| 52-Week HighHighest price in past year | $214.50 | $460.00 |
| 52-Week LowLowest price in past year | $126.03 | $215.05 |
| % of 52W HighCurrent price vs 52-week peak | +82.4% | +69.5% |
| RSI (14)Momentum oscillator 0–100 | 29.7 | 23.4 |
| Avg Volume (50D)Average daily shares traded | 5.3M | 474K |
Analyst Outlook
HII leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates RTX as "Buy" and HII as "Hold". Consensus price targets imply 31.4% upside for HII (target: $420) vs 27.2% for RTX (target: $225). For income investors, HII offers the higher dividend yield at 1.70% vs RTX's 1.49%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $224.89 | $420.00 |
| # AnalystsCovering analysts | 26 | 27 |
| Dividend YieldAnnual dividend ÷ price | +1.5% | +1.7% |
| Dividend StreakConsecutive years of raises | 4 | 13 |
| Dividend / ShareAnnual DPS | $2.63 | $5.42 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.0% | 0.0% |
RTX leads in 3 of 6 categories (Income & Cash Flow, Total Returns). HII leads in 3 (Valuation Metrics, Profitability & Efficiency).
RTX vs HII: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is RTX or HII a better buy right now?
For growth investors, RTX Corporation (RTX) is the stronger pick with 9.
7% revenue growth year-over-year, versus 8. 2% for Huntington Ingalls Industries, Inc. (HII). Huntington Ingalls Industries, Inc. (HII) offers the better valuation at 20. 8x trailing P/E (18. 4x forward), making it the more compelling value choice. Analysts rate RTX Corporation (RTX) a "Buy" — based on 26 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 — RTX or HII?
On trailing P/E, Huntington Ingalls Industries, Inc.
(HII) is the cheapest at 20. 8x versus RTX Corporation at 35. 6x. On forward P/E, Huntington Ingalls Industries, Inc. is actually cheaper at 18. 4x.
03Which is the better long-term investment — RTX or HII?
Over the past 5 years, RTX Corporation (RTX) delivered a total return of +122.
7%, compared to +58. 0% for Huntington Ingalls Industries, Inc. (HII). Over 10 years, the gap is even starker: RTX returned +231. 2% versus HII's +132. 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 — RTX or HII?
By beta (market sensitivity over 5 years), RTX Corporation (RTX) is the lower-risk stock at 0.
51β versus Huntington Ingalls Industries, Inc. 's 0. 69β — meaning HII is approximately 35% 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 62% for Huntington Ingalls Industries, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — RTX or HII?
By revenue growth (latest reported year), RTX Corporation (RTX) is pulling ahead at 9.
7% versus 8. 2% for Huntington Ingalls Industries, Inc. (HII). On earnings-per-share growth, the picture is similar: RTX Corporation grew EPS 39. 7% year-over-year, compared to 10. 2% for Huntington Ingalls Industries, 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 — RTX or HII?
RTX Corporation (RTX) is the more profitable company, earning 7.
6% net margin versus 4. 8% for Huntington Ingalls Industries, Inc. — 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 4. 9% for HII. 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 RTX or HII more undervalued right now?
On forward earnings alone, Huntington Ingalls Industries, Inc.
(HII) trades at 18. 4x forward P/E versus 25. 5x for RTX Corporation — 7. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HII: 31. 4% to $420. 00.
08Which pays a better dividend — RTX or HII?
All stocks in this comparison pay dividends.
Huntington Ingalls Industries, Inc. (HII) offers the highest yield at 1. 7%, versus 1. 5% for RTX Corporation (RTX).
09Is RTX or HII 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, +231. 2% 10Y return). Both have compounded well over 10 years (RTX: +231. 2%, HII: +132. 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 RTX and HII?
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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