The Boeing Company (BA) vs RTX Corporation (RTX)

The Boeing Company and RTX Corporation are both Aerospace & Defense companies. RTX Corporation is the larger, with a market value of $252.0B against $149.2B — 1.7× the size. RTX Corporation trades at the lower P/E: 33.7× against 71.2×. The Boeing Company grew revenue faster over the last twelve months: 24.8% against 11.8%. RTX Corporation has the higher net margin (8.28% vs 2.22%) and the lower return on invested capital (6.74% vs 8.99%). Across the 20 metrics below, RTX Corporation leads on 13 and The Boeing Company on 7.

Valuation

Metric BA RTX Aerospace & Defense median
P/E 71.24 33.73 31.81
P/S 1.60 2.80 3.55
P/B 24.61 3.85 2.59
Price to free cash flow n/m 23.84 31.99
EV/EBITDA 25.93 19.55 18.08
EV/Sales 1.88 3.11 3.37
Earnings yield 1.40% 2.97% 1.38%
Free cash flow yield (0.09%) 4.19% 0.21%

Profitability

Metric BA RTX Aerospace & Defense median
Gross margin 4.68% 20.35% 25.48%
Operating margin 4.89% 11.21% 4.54%
Net margin 2.22% 8.28% 2.22%
Free cash flow margin (0.14%) 11.75% 1.43%
Return on equity 148.84% 11.70% 6.43%
Return on assets 1.30% 4.54% 2.70%
Return on invested capital 8.99% 6.74% 1.56%

Growth

Metric BA RTX Aerospace & Defense median
Revenue growth (TTM) 24.78% 11.84% 18.43%
EPS growth (last fiscal year) 113.51% 39.72% 24.27%
Revenue growth, 5-year CAGR 9.00% 9.38% 9.73%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BA RTX Aerospace & Defense median
Debt to equity 7.51 0.55 0.24
Current ratio 1.14 1.01 2.72
Net debt to EBITDA 3.96 2.23 1.12

Dividend

Metric BA RTX Aerospace & Defense median
Dividend yield — 1.45% 0.90%
Payout ratio — 0.50 0.32

Size

Metric BA RTX Aerospace & Defense median
Market cap 149.17b 251.96b 2.19b

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