TXT vs HII vs GD vs LMT vs RTX

For growth investors, General Dynamics Corporation (GD) is the stronger pick with 10.

1% revenue growth year-over-year, versus 5. 7% for Lockheed Martin Corporation (LMT). Textron Inc. (TXT) offers the better valuation at 17. 9x trailing P/E (14. 2x forward), making it the more compelling value choice. Analysts rate General Dynamics Corporation (GD) a "Buy" — based on 34 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.

On trailing P/E, Textron Inc.

(TXT) is the cheapest at 17. 9x versus RTX Corporation at 35. 6x. On forward P/E, Textron Inc. is actually cheaper at 14. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Textron Inc. wins at 0. 46x versus General Dynamics Corporation's 2. 99x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, RTX Corporation (RTX) delivered a total return of +120.

1%, compared to +35. 1% for Textron Inc. (TXT). Over 10 years, the gap is even starker: RTX returned +234. 7% versus HII's +130. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Lockheed Martin Corporation (LMT) is the lower-risk stock at 0.

12β versus Textron Inc. 's 0. 90β — meaning TXT is approximately 628% more volatile than LMT relative to the S&P 500. On balance sheet safety, General Dynamics Corporation (GD) carries a lower debt/equity ratio of 38% versus 3% for Lockheed Martin Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), General Dynamics Corporation (GD) is pulling ahead at 10.

1% versus 5. 7% for Lockheed Martin Corporation (LMT). On earnings-per-share growth, the picture is similar: RTX Corporation grew EPS 39. 7% year-over-year, compared to -3. 7% for Lockheed Martin Corporation. Over a 3-year CAGR, GD leads at 10. 1% 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.

General Dynamics Corporation (GD) is the more profitable company, earning 8.

0% net margin versus 4. 8% for Huntington Ingalls Industries, Inc. — meaning it keeps 8. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LMT leads at 10. 3% 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Textron Inc. (TXT) is the more undervalued stock at a PEG of 0. 46x versus General Dynamics Corporation's 2. 99x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Textron Inc. (TXT) trades at 14. 2x forward P/E versus 25. 5x for RTX Corporation — 11. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HII: 33. 5% to $420. 00.

All stocks in this comparison pay dividends.

Lockheed Martin Corporation (LMT) offers the highest yield at 2. 6%, versus 0. 1% for Textron Inc. (TXT).

For long-horizon retirement investors, Lockheed Martin Corporation (LMT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

12), 2. 6% yield, +156. 2% 10Y return). Both have compounded well over 10 years (LMT: +156. 2%, TXT: +142. 8%), 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.

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: TXT is a mid-cap deep-value stock; HII is a mid-cap quality compounder stock; GD is a mid-cap quality compounder stock; LMT is a mid-cap quality compounder stock; RTX is a large-cap quality compounder stock. HII, GD, LMT, RTX pay a dividend while TXT 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.