RTX vs. LMT, BA, GD, TDG, NOC, LHX, HEI, TATT, SIF, and LDOS
Should you be buying RTX stock or one of its competitors? The main competitors of RTX include Lockheed Martin (LMT), Boeing (BA), General Dynamics (GD), TransDigm Group (TDG), Northrop Grumman (NOC), L3Harris Technologies (LHX), HEICO (HEI), TAT Technologies (TATT), SIFCO Industries (SIF), and Leidos (LDOS). These companies are all part of the "aerospace" sector.
RTX (NYSE:RTX) and Lockheed Martin (NYSE:LMT) are both large-cap aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability, analyst recommendations, community ranking and media sentiment.
RTX pays an annual dividend of $2.36 per share and has a dividend yield of 2.3%. Lockheed Martin pays an annual dividend of $12.60 per share and has a dividend yield of 2.7%. RTX pays out 92.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lockheed Martin pays out 46.1% of its earnings in the form of a dividend. Lockheed Martin is clearly the better dividend stock, given its higher yield and lower payout ratio.
86.5% of RTX shares are held by institutional investors. Comparatively, 74.2% of Lockheed Martin shares are held by institutional investors. 0.1% of RTX shares are held by insiders. Comparatively, 0.1% of Lockheed Martin shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Lockheed Martin has lower revenue, but higher earnings than RTX. Lockheed Martin is trading at a lower price-to-earnings ratio than RTX, indicating that it is currently the more affordable of the two stocks.
RTX currently has a consensus target price of $96.93, suggesting a potential downside of 6.09%. Lockheed Martin has a consensus target price of $485.40, suggesting a potential upside of 4.04%. Given Lockheed Martin's stronger consensus rating and higher possible upside, analysts clearly believe Lockheed Martin is more favorable than RTX.
Lockheed Martin has a net margin of 9.73% compared to RTX's net margin of 4.90%. Lockheed Martin's return on equity of 85.96% beat RTX's return on equity.
Lockheed Martin received 655 more outperform votes than RTX when rated by MarketBeat users. Likewise, 58.87% of users gave Lockheed Martin an outperform vote while only 55.56% of users gave RTX an outperform vote.
In the previous week, RTX had 10 more articles in the media than Lockheed Martin. MarketBeat recorded 45 mentions for RTX and 35 mentions for Lockheed Martin. Lockheed Martin's average media sentiment score of 0.60 beat RTX's score of 0.35 indicating that Lockheed Martin is being referred to more favorably in the news media.
RTX has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Lockheed Martin has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.
Summary
Lockheed Martin beats RTX on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding RTX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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