TXT
Textron Inc.
Aerospace & Defense
Market Cap$16.21B
5Y Perf.+200.6%
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Stock Comparison
TXT vs LHX
Revenue, margins, valuation, and 5-year total return — side by side.
LHX
L3Harris Technologies, Inc.
Aerospace & Defense
Market Cap$56.45B
5Y Perf.+51.5%
TXT vs LHX — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | TXT | LHX |
|---|---|---|
| Industry | Aerospace & Defense | Aerospace & Defense |
| Market Cap | $16.21B | $56.45B |
| Revenue (TTM) | $15.19B | $22.48B |
| Net Income (TTM) | $934M | $1.73B |
| Gross Margin | 14.4% | 24.5% |
| Operating Margin | 8.4% | 10.0% |
| Forward P/E | 14.4x | 26.1x |
| Total Debt | $4.28B | $10.44B |
| Cash & Equiv. | $2.02B | $1.07B |
TXT vs LHX — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
TXT
LHX
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Textron Inc. (TXT) | 100 | 300.6 | +200.6% |
| L3Harris Technologi… (LHX) | 100 | 151.5 | +51.5% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TXT vs LHX
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: LHX leads in 4 of 7 categories, making it the strongest pick for profitability and margin quality and capital preservation and lower volatility. Textron Inc. is the stronger pick specifically for growth and revenue expansion and valuation and capital efficiency. As sector peers, any of these can serve as alternatives in the same allocation.
TXT
Textron Inc.
The Growth Play
TXT is the clearest fit if your priority is growth exposure and valuation efficiency.
- Rev growth 8.0%, EPS growth 18.0%, 3Y rev CAGR 4.8%
- PEG 0.47 vs LHX's 2.49
- 8.0% revenue growth vs LHX's 2.5%
Best for: growth exposure and valuation efficiency
LHX
L3Harris Technologies, Inc.
The Income Pick
LHX carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 6 yrs, beta 0.39, yield 1.6%
- 353.9% 10Y total return vs TXT's 145.6%
- Lower volatility, beta 0.39, Low D/E 53.2%, current ratio 1.19x
Best for: income & stability and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | TXT | 8.0% revenue growth vs LHX's 2.5% |
| Value | TXT | Lower P/E (14.4x vs 26.1x), PEG 0.47 vs 2.49 |
| Quality / Margins | LHX | 7.7% margin vs TXT's 6.1% |
| Stability / Safety | LHX | Beta 0.39 vs TXT's 0.90, lower leverage |
| Dividends | LHX | 1.6% yield, 6-year raise streak, vs TXT's 0.1% |
| Momentum (1Y) | LHX | +42.0% vs TXT's +34.1% |
| Efficiency (ROA) | TXT | 5.3% ROA vs LHX's 4.2%, ROIC 9.4% vs 5.4% |
TXT vs LHX — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
TXT vs LHX — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLLHXLAGGINGTXT
TXTTextron Inc.
2leads
LHXL3Harris Technologies…
3leads
6 Total Categories
CATEGORYLEADERvs TXTMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
LHX6/6
Valuation MetricsMultiples, price ratios, and targets
TXT7/7
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
TXT7/9
Total Returns1Y, 3Y, 5Y total returns with dividends
LHX5/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
LHX2/2
Income & Cash Flow (Last 12 Months)
LHX leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
LHX and TXT operate at a comparable scale, with $22.5B and $15.2B in trailing revenue. Profitability is closely matched — net margins range from 7.7% (LHX) to 6.1% (TXT).
| Metric | TXTTextron Inc. | LHXL3Harris Technolo… |
|---|---|---|
| RevenueTrailing 12 months | $15.2B | $22.5B |
| EBITDAEarnings before interest/tax | $1.7B | $3.3B |
| Net IncomeAfter-tax profit | $934M | $1.7B |
| Free Cash FlowCash after capex | $707M | $2.6B |
| Gross MarginGross profit ÷ Revenue | +14.4% | +24.5% |
| Operating MarginEBIT ÷ Revenue | +8.4% | +10.0% |
| Net MarginNet income ÷ Revenue | +6.1% | +7.7% |
| FCF MarginFCF ÷ Revenue | +4.7% | +11.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +11.8% | +11.9% |
| EPS Growth (YoY)Latest quarter vs prior year | +10.6% | +33.3% |
LHX leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
TXT leads this category, winning 7 of 7 comparable metrics.
Valuation Metrics
At 18.2x trailing earnings, TXT trades at a 49% valuation discount to LHX's 35.4x P/E. Adjusting for growth (PEG ratio), TXT offers better value at 0.60x vs LHX's 3.38x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | TXTTextron Inc. | LHXL3Harris Technolo… |
|---|---|---|
| Market CapShares × price | $16.2B | $56.4B |
| Enterprise ValueMkt cap + debt − cash | $18.5B | $65.8B |
| Trailing P/EPrice ÷ TTM EPS | 18.22x | 35.43x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.39x | 26.09x |
| PEG RatioP/E ÷ EPS growth rate | 0.60x | 3.38x |
| EV / EBITDAEnterprise value multiple | 11.19x | 19.25x |
| Price / SalesMarket cap ÷ Revenue | 1.10x | 2.58x |
| Price / BookPrice ÷ Book value/share | 2.13x | 2.90x |
| Price / FCFMarket cap ÷ FCF | 18.33x | 21.05x |
TXT leads this category, winning 7 of 7 comparable metrics.
Profitability & Efficiency
TXT leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
TXT delivers a 12.1% return on equity — every $100 of shareholder capital generates $12 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 TXT's 0.54x. On the Piotroski fundamental quality scale (0–9), LHX scores 9/9 vs TXT's 7/9, reflecting strong financial health.
| Metric | TXTTextron Inc. | LHXL3Harris Technolo… |
|---|---|---|
| ROE (TTM)Return on equity | +12.1% | +8.9% |
| ROA (TTM)Return on assets | +5.3% | +4.2% |
| ROICReturn on invested capital | +9.4% | +5.4% |
| ROCEReturn on capital employed | +9.5% | +6.4% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 9 |
| Debt / EquityFinancial leverage | 0.54x | 0.53x |
| Net DebtTotal debt minus cash | $2.3B | $9.4B |
| Cash & Equiv.Liquid assets | $2.0B | $1.1B |
| Total DebtShort + long-term debt | $4.3B | $10.4B |
| Interest CoverageEBIT ÷ Interest expense | 12.38x | 4.41x |
TXT leads this category, winning 7 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
LHX leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in LHX five years ago would be worth $14,977 today (with dividends reinvested), compared to $13,889 for TXT. Over the past 12 months, LHX leads with a +42.0% total return vs TXT's +34.1%. The 3-year compound annual growth rate (CAGR) favors LHX at 19.1% vs TXT's 12.4% — a key indicator of consistent wealth creation.
| Metric | TXTTextron Inc. | LHXL3Harris Technolo… |
|---|---|---|
| YTD ReturnYear-to-date | +7.0% | -0.3% |
| 1-Year ReturnPast 12 months | +34.1% | +42.0% |
| 3-Year ReturnCumulative with dividends | +42.0% | +68.9% |
| 5-Year ReturnCumulative with dividends | +38.9% | +49.8% |
| 10-Year ReturnCumulative with dividends | +145.6% | +353.9% |
| CAGR (3Y)Annualised 3-year return | +12.4% | +19.1% |
LHX leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
Evenly matched — TXT and LHX 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 TXT's 0.90 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TXT currently trades 91.7% from its 52-week high vs LHX's 79.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TXTTextron Inc. | LHXL3Harris Technolo… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.90x | 0.39x |
| 52-Week HighHighest price in past year | $101.57 | $379.23 |
| 52-Week LowLowest price in past year | $69.46 | $214.10 |
| % of 52W HighCurrent price vs 52-week peak | +91.7% | +79.7% |
| RSI (14)Momentum oscillator 0–100 | 51.5 | 24.4 |
| Avg Volume (50D)Average daily shares traded | 1.3M | 1.4M |
Evenly matched — TXT and LHX each lead in 1 of 2 comparable metrics.
Analyst Outlook
LHX leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates TXT as "Hold" and LHX as "Buy". Consensus price targets imply 16.6% upside for LHX (target: $352) vs 11.5% for TXT (target: $104). For income investors, LHX offers the higher dividend yield at 1.59% vs TXT's 0.11%.
| Metric | TXTTextron Inc. | LHXL3Harris Technolo… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $103.80 | $352.25 |
| # AnalystsCovering analysts | 29 | 32 |
| Dividend YieldAnnual dividend ÷ price | +0.1% | +1.6% |
| Dividend StreakConsecutive years of raises | 2 | 6 |
| Dividend / ShareAnnual DPS | $0.11 | $4.79 |
| Buyback YieldShare repurchases ÷ mkt cap | +6.6% | +2.0% |
LHX leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
LHX leads in 3 of 6 categories (Income & Cash Flow, Total Returns). TXT leads in 2 (Valuation Metrics, Profitability & Efficiency). 1 tied.
Best OverallL3Harris Technologies, Inc. (LHX)Leads 3 of 6 categories
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TXT vs LHX: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TXT or LHX a better buy right now?
For growth investors, Textron Inc.
(TXT) is the stronger pick with 8. 0% revenue growth year-over-year, versus 2. 5% for L3Harris Technologies, Inc. (LHX). Textron Inc. (TXT) offers the better valuation at 18. 2x trailing P/E (14. 4x 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 — TXT or LHX?
On trailing P/E, Textron Inc.
(TXT) is the cheapest at 18. 2x versus L3Harris Technologies, Inc. at 35. 4x. On forward P/E, Textron Inc. is actually cheaper at 14. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Textron Inc. wins at 0. 47x versus L3Harris Technologies, Inc. 's 2. 49x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — TXT or LHX?
Over the past 5 years, L3Harris Technologies, Inc.
(LHX) delivered a total return of +49. 8%, compared to +38. 9% for Textron Inc. (TXT). Over 10 years, the gap is even starker: LHX returned +353. 9% versus TXT's +145. 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 — TXT or LHX?
By beta (market sensitivity over 5 years), L3Harris Technologies, Inc.
(LHX) is the lower-risk stock at 0. 39β versus Textron Inc. 's 0. 90β — meaning TXT is approximately 132% 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 54% for Textron Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — TXT or LHX?
By revenue growth (latest reported year), Textron Inc.
(TXT) is pulling ahead at 8. 0% versus 2. 5% for L3Harris Technologies, Inc. (LHX). On earnings-per-share growth, the picture is similar: Textron Inc. grew EPS 18. 0% year-over-year, compared to 8. 4% for L3Harris Technologies, Inc.. Over a 3-year CAGR, LHX leads at 8. 6% 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 — TXT or LHX?
L3Harris Technologies, Inc.
(LHX) is the more profitable company, earning 7. 3% net margin versus 6. 2% for Textron Inc. — meaning it keeps 7. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LHX leads at 10. 0% versus 8. 4% for TXT. 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 TXT or LHX more undervalued right now?
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. 47x versus L3Harris Technologies, Inc. 's 2. 49x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Textron Inc. (TXT) trades at 14. 4x forward P/E versus 26. 1x for L3Harris Technologies, Inc. — 11. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LHX: 16. 6% to $352. 25.
08Which pays a better dividend — TXT or LHX?
All stocks in this comparison pay dividends.
L3Harris Technologies, Inc. (LHX) offers the highest yield at 1. 6%, versus 0. 1% for Textron Inc. (TXT).
09Is TXT or LHX 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%, TXT: +145. 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 TXT and LHX?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
LHX pays 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.
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Revenue Growth>
%
(TXT: 11.8% · LHX: 11.9%)Net Margin>
%
(TXT: 6.1% · LHX: 7.7%)P/E Ratio<
x
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