RTX
RTX Corporation
Aerospace & Defense
Market Cap$232.80B
5Y Perf.+173.9%
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Stock Comparison
RTX vs NOC
Revenue, margins, valuation, and 5-year total return — side by side.
NOC
Northrop Grumman Corporation
Aerospace & Defense
Market Cap$79.34B
5Y Perf.+66.7%
RTX vs NOC — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | RTX | NOC |
|---|---|---|
| Industry | Aerospace & Defense | Aerospace & Defense |
| Market Cap | $232.80B | $79.34B |
| Revenue (TTM) | $90.37B | $42.37B |
| Net Income (TTM) | $7.26B | $4.58B |
| Gross Margin | 20.2% | 20.5% |
| Operating Margin | 10.4% | 11.1% |
| Forward P/E | 25.0x | 20.0x |
| Total Debt | $39.51B | $19.74B |
| Cash & Equiv. | $7.43B | $4.40B |
RTX vs NOC — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
RTX
NOC
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| RTX Corporation (RTX) | 100 | 273.9 | +173.9% |
| Northrop Grumman Co… (NOC) | 100 | 166.7 | +66.7% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RTX vs NOC
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: NOC leads in 5 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. RTX Corporation is the stronger pick specifically for growth and revenue expansion and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
RTX
RTX Corporation
The Growth Play
RTX is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 9.7%, EPS growth 39.7%, 3Y rev CAGR 9.7%
- 227.4% 10Y total return vs NOC's 192.7%
- 9.7% revenue growth vs NOC's 2.2%
Best for: growth exposure and long-term compounding
NOC
Northrop Grumman Corporation
The Income Pick
NOC carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 22 yrs, beta 0.03, yield 1.6%
- Lower volatility, beta 0.03, current ratio 1.09x
- Beta 0.03, yield 1.6%, current ratio 1.09x
Best for: income & stability and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | RTX | 9.7% revenue growth vs NOC's 2.2% |
| Value | NOC | Lower P/E (20.0x vs 25.0x) |
| Quality / Margins | NOC | 10.8% margin vs RTX's 8.0% |
| Stability / Safety | NOC | Beta 0.03 vs RTX's 0.51 |
| Dividends | NOC | 1.6% yield, 22-year raise streak, vs RTX's 1.5% |
| Momentum (1Y) | RTX | +36.6% vs NOC's +15.1% |
| Efficiency (ROA) | NOC | 9.1% ROA vs RTX's 4.3%, ROIC 10.2% vs 6.7% |
RTX vs NOC — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
RTX vs NOC — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLNOCLAGGINGRTX
RTXRTX Corporation
1leads
NOCNorthrop Grumman Corp…
4leads
6 Total Categories
CATEGORYLEADERvs RTXMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
NOC4/6
Valuation MetricsMultiples, price ratios, and targets
NOC5/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
NOC7/9
Total Returns1Y, 3Y, 5Y total returns with dividends
RTX5/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
NOC2/2
Income & Cash Flow (Last 12 Months)
NOC 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 — 2.1x NOC's $42.4B. Profitability is closely matched — net margins range from 10.8% (NOC) to 8.0% (RTX). On growth, RTX holds the edge at +8.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | RTXRTX Corporation | NOCNorthrop Grumman … |
|---|---|---|
| RevenueTrailing 12 months | $90.4B | $42.4B |
| EBITDAEarnings before interest/tax | $13.8B | $6.2B |
| Net IncomeAfter-tax profit | $7.3B | $4.6B |
| Free Cash FlowCash after capex | $8.4B | $3.3B |
| Gross MarginGross profit ÷ Revenue | +20.2% | +20.5% |
| Operating MarginEBIT ÷ Revenue | +10.4% | +11.1% |
| Net MarginNet income ÷ Revenue | +8.0% | +10.8% |
| FCF MarginFCF ÷ Revenue | +9.2% | +7.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +8.7% | +4.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +32.5% | +84.9% |
NOC leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
NOC leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 19.2x trailing earnings, NOC trades at a 45% valuation discount to RTX's 34.9x P/E. On an enterprise value basis, NOC's 16.5x EV/EBITDA is more attractive than RTX's 20.6x.
| Metric | RTXRTX Corporation | NOCNorthrop Grumman … |
|---|---|---|
| Market CapShares × price | $232.8B | $79.3B |
| Enterprise ValueMkt cap + debt − cash | $264.9B | $94.7B |
| Trailing P/EPrice ÷ TTM EPS | 34.85x | 19.21x |
| Forward P/EPrice ÷ next-FY EPS est. | 24.98x | 19.99x |
| PEG RatioP/E ÷ EPS growth rate | — | 2.17x |
| EV / EBITDAEnterprise value multiple | 20.55x | 16.46x |
| Price / SalesMarket cap ÷ Revenue | 2.63x | 1.89x |
| Price / BookPrice ÷ Book value/share | 3.49x | 4.82x |
| Price / FCFMarket cap ÷ FCF | 29.32x | 23.99x |
NOC leads this category, winning 5 of 6 comparable metrics.
Profitability & Efficiency
NOC leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
NOC delivers a 28.1% return on equity — every $100 of shareholder capital generates $28 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 NOC's 1.18x. On the Piotroski fundamental quality scale (0–9), RTX scores 8/9 vs NOC's 6/9, reflecting strong financial health.
| Metric | RTXRTX Corporation | NOCNorthrop Grumman … |
|---|---|---|
| ROE (TTM)Return on equity | +10.9% | +28.1% |
| ROA (TTM)Return on assets | +4.3% | +9.1% |
| ROICReturn on invested capital | +6.7% | +10.2% |
| ROCEReturn on capital employed | +7.9% | +11.8% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 6 |
| Debt / EquityFinancial leverage | 0.59x | 1.18x |
| Net DebtTotal debt minus cash | $32.1B | $15.3B |
| Cash & Equiv.Liquid assets | $7.4B | $4.4B |
| Total DebtShort + long-term debt | $39.5B | $19.7B |
| Interest CoverageEBIT ÷ Interest expense | 5.58x | 8.92x |
NOC leads this category, winning 7 of 9 comparable metrics.
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 $15,999 for NOC. Over the past 12 months, RTX leads with a +36.6% total return vs NOC's +15.1%. The 3-year compound annual growth rate (CAGR) favors RTX at 23.2% vs NOC's 9.3% — a key indicator of consistent wealth creation.
| Metric | RTXRTX Corporation | NOCNorthrop Grumman … |
|---|---|---|
| YTD ReturnYear-to-date | -7.3% | -4.2% |
| 1-Year ReturnPast 12 months | +36.6% | +15.1% |
| 3-Year ReturnCumulative with dividends | +86.9% | +30.6% |
| 5-Year ReturnCumulative with dividends | +119.6% | +60.0% |
| 10-Year ReturnCumulative with dividends | +227.4% | +192.7% |
| CAGR (3Y)Annualised 3-year return | +23.2% | +9.3% |
RTX leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
Evenly matched — RTX and NOC each lead in 1 of 2 comparable metrics.
Risk & Volatility
NOC is the less volatile stock with a 0.03 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. RTX currently trades 80.6% from its 52-week high vs NOC's 72.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | RTXRTX Corporation | NOCNorthrop Grumman … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.51x | 0.03x |
| 52-Week HighHighest price in past year | $214.50 | $774.00 |
| 52-Week LowLowest price in past year | $126.03 | $453.01 |
| % of 52W HighCurrent price vs 52-week peak | +80.6% | +72.2% |
| RSI (14)Momentum oscillator 0–100 | 29.7 | 21.2 |
| Avg Volume (50D)Average daily shares traded | 5.4M | 776K |
Evenly matched — RTX and NOC each lead in 1 of 2 comparable metrics.
Analyst Outlook
NOC leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates RTX as "Buy" and NOC as "Buy". Consensus price targets imply 30.9% upside for NOC (target: $731) vs 30.1% for RTX (target: $225). For income investors, NOC offers the higher dividend yield at 1.61% vs RTX's 1.52%.
| Metric | RTXRTX Corporation | NOCNorthrop Grumman … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $224.89 | $731.46 |
| # AnalystsCovering analysts | 26 | 35 |
| Dividend YieldAnnual dividend ÷ price | +1.5% | +1.6% |
| Dividend StreakConsecutive years of raises | 4 | 22 |
| Dividend / ShareAnnual DPS | $2.63 | $8.99 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.0% | +2.0% |
NOC leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
NOC leads in 4 of 6 categories (Income & Cash Flow, Valuation Metrics). RTX leads in 1 (Total Returns). 1 tied.
Best OverallNorthrop Grumman Corporation (NOC)Leads 4 of 6 categories
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RTX vs NOC: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is RTX or NOC 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. 2% for Northrop Grumman Corporation (NOC). Northrop Grumman Corporation (NOC) offers the better valuation at 19. 2x trailing P/E (20. 0x 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 NOC?
On trailing P/E, Northrop Grumman Corporation (NOC) is the cheapest at 19.
2x versus RTX Corporation at 34. 9x. On forward P/E, Northrop Grumman Corporation is actually cheaper at 20. 0x.
03Which is the better long-term investment — RTX or NOC?
Over the past 5 years, RTX Corporation (RTX) delivered a total return of +119.
6%, compared to +60. 0% for Northrop Grumman Corporation (NOC). Over 10 years, the gap is even starker: RTX returned +227. 4% versus NOC's +192. 7%. 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 NOC?
By beta (market sensitivity over 5 years), Northrop Grumman Corporation (NOC) is the lower-risk stock at 0.
03β versus RTX Corporation's 0. 51β — meaning RTX is approximately 1681% more volatile than NOC relative to the S&P 500. On balance sheet safety, RTX Corporation (RTX) carries a lower debt/equity ratio of 59% versus 118% for Northrop Grumman Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — RTX or NOC?
By revenue growth (latest reported year), RTX Corporation (RTX) is pulling ahead at 9.
7% versus 2. 2% for Northrop Grumman Corporation (NOC). On earnings-per-share growth, the picture is similar: RTX Corporation grew EPS 39. 7% year-over-year, compared to 2. 6% for Northrop Grumman Corporation. 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 NOC?
Northrop Grumman Corporation (NOC) is the more profitable company, earning 10.
0% net margin versus 7. 6% for RTX Corporation — meaning it keeps 10. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NOC leads at 10. 2% versus 10. 0% for RTX. 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 NOC more undervalued right now?
On forward earnings alone, Northrop Grumman Corporation (NOC) trades at 20.
0x forward P/E versus 25. 0x for RTX Corporation — 5. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NOC: 30. 9% to $731. 46.
08Which pays a better dividend — RTX or NOC?
All stocks in this comparison pay dividends.
Northrop Grumman Corporation (NOC) offers the highest yield at 1. 6%, versus 1. 5% for RTX Corporation (RTX).
09Is RTX or NOC better for a retirement portfolio?
For long-horizon retirement investors, Northrop Grumman Corporation (NOC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
03), 1. 6% yield, +192. 7% 10Y return). Both have compounded well over 10 years (NOC: +192. 7%, RTX: +227. 4%), 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 NOC?
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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Revenue Growth>
%
(RTX: 8.7% · NOC: 4.4%)Net Margin>
%
(RTX: 8.0% · NOC: 10.8%)P/E Ratio<
x
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