GE Aerospace (GE) vs RTX Corporation (RTX)

GE Aerospace and RTX Corporation are both Aerospace & Defense companies. GE Aerospace is the larger, with a market value of $333.1B against $253.9B — 1.3× the size. RTX Corporation trades at the lower P/E: 32.9× against 38.2×. GE Aerospace grew revenue faster over the last twelve months: 21.7% against 11.8%. GE Aerospace has the higher net margin (17.7% vs 8.28%) and the higher return on invested capital (26.5% vs 6.74%). Both pay a dividend; RTX Corporation yields more (2.71% vs 0.29%). Across the 23 metrics below, RTX Corporation leads on 13 and GE Aerospace on 10.

Valuation

Metric GE RTX Aerospace & Defense median
P/E 38.21 32.94 33.00
P/S 6.72 2.74 3.63
P/B 19.04 3.76 3.24
Price to free cash flow 49.62 23.29 34.01
EV/EBITDA 26.96 19.14 18.69
EV/Sales 6.91 3.05 3.94
Earnings yield 2.62% 3.04% 1.31%
Free cash flow yield 2.02% 4.29% 0.00%

Profitability

Metric GE RTX Aerospace & Defense median
Gross margin 35.38% 20.35% 25.48%
Operating margin 23.20% 11.21% 4.54%
Net margin 17.72% 8.28% 2.22%
Free cash flow margin 16.89% 11.75% 0.00%
Return on equity 48.22% 11.70% 6.43%
Return on assets 7.09% 4.54% 2.70%
Return on invested capital 26.53% 6.74% 1.56%

Growth

Metric GE RTX Aerospace & Defense median
Revenue growth (TTM) 21.69% 11.84% 18.43%
EPS growth (last fiscal year) 35.89% 39.72% —
Revenue growth, 5-year CAGR (9.57%) 9.38% 9.62%
Net income growth, 5-year CAGR 10.72% 0.00% 0.00%

Health

Metric GE RTX Aerospace & Defense median
Debt to equity 1.07 0.55 0.24
Current ratio 0.98 1.01 2.72
Net debt to EBITDA 0.65 2.23 1.12

Dividend

Metric GE RTX Aerospace & Defense median
Dividend yield 0.29% 2.71% 1.04%
Payout ratio 0.03 0.59 0.00

Size

Metric GE RTX Aerospace & Defense median
Market cap 333.06b 253.92b 2.52b

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