VHI vs RTX

For growth investors, RTX Corporation (RTX) is the stronger pick with 9.

7% revenue growth year-over-year, versus -1. 3% for Valhi, Inc. (VHI). RTX Corporation (RTX) offers the better valuation at 35. 6x trailing P/E (25. 5x 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.

On forward P/E, Valhi, Inc.

is actually cheaper at 4. 2x — notably different from the trailing picture, reflecting expected earnings growth.

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

1%, compared to -46. 5% for Valhi, Inc. (VHI). Over 10 years, the gap is even starker: RTX returned +234. 7% versus VHI's -2. 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), RTX Corporation (RTX) is the lower-risk stock at 0.

51β versus Valhi, Inc. 's 1. 06β — meaning VHI is approximately 109% more volatile than RTX relative to the S&P 500. On balance sheet safety, Valhi, Inc. (VHI) carries a lower debt/equity ratio of 45% versus 59% for RTX Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), RTX Corporation (RTX) is pulling ahead at 9.

7% versus -1. 3% for Valhi, Inc. (VHI). On earnings-per-share growth, the picture is similar: RTX Corporation grew EPS 39. 7% year-over-year, compared to -153. 3% for Valhi, 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.

RTX Corporation (RTX) is the more profitable company, earning 7.

6% net margin versus -2. 8% for Valhi, 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 -0. 0% for VHI. 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.

On forward earnings alone, Valhi, Inc.

(VHI) trades at 4. 2x forward P/E versus 25. 5x for RTX Corporation — 21. 4x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

Valhi, Inc. (VHI) offers the highest yield at 2. 2%, versus 1. 5% for RTX Corporation (RTX).

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, +234. 7% 10Y return). Both have compounded well over 10 years (RTX: +234. 7%, VHI: -2. 7%), 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.

These companies operate in different sectors (VHI (Basic Materials) and RTX (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

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.