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 $325.2B against $258.9B — 1.3× the size. RTX Corporation trades at the lower P/E: 30.9× against 36.0×. GE Aerospace grew revenue faster over the last twelve months: 19.6% against 11.6%. GE Aerospace has the higher net margin (17.3% vs 8.75%) and the higher return on invested capital (27.4% vs 7.12%). Both pay a dividend; RTX Corporation yields more (1.47% vs 0.56%). Across the 23 metrics below, RTX Corporation leads on 13 and GE Aerospace on 10.

Valuation

Metric GE RTX Aerospace & Defense median
P/E 35.97 30.88 28.48
P/S 6.18 2.71 2.95
P/B 18.31 3.67 2.68
Price to free cash flow 49.64 28.50 31.70
EV/EBITDA 24.57 18.39 16.85
EV/Sales 6.38 3.00 2.74
Earnings yield 2.78% 3.24% 0.89%
Free cash flow yield 2.01% 3.51% 0.00%

Profitability

Metric GE RTX Aerospace & Defense median
Gross margin 35.22% 21.10% 26.41%
Operating margin 23.56% 11.77% 3.69%
Net margin 17.31% 8.75% 2.74%
Free cash flow margin 15.68% 9.51% 0.00%
Return on equity 49.51% 12.24% 4.44%
Return on assets 7.13% 4.87% 1.90%
Return on invested capital 27.35% 7.12% 0.26%

Growth

Metric GE RTX Aerospace & Defense median
Revenue growth (TTM) 19.62% 11.63% 18.03%
EPS growth (last fiscal year) 35.89% 39.72% 24.80%
Revenue growth, 5-year CAGR (9.57%) 9.38% 9.73%
Net income growth, 5-year CAGR 10.72% 0.00% 0.00%

Health

Metric GE RTX Aerospace & Defense median
Debt to equity 1.09 0.53 0.20
Current ratio 0.98 1.05 2.85
Net debt to EBITDA 0.65 2.23 1.29

Dividend

Metric GE RTX Aerospace & Defense median
Dividend yield 0.56% 1.47% 0.91%
Payout ratio 0.20 0.46 0.30

Size

Metric GE RTX Aerospace & Defense median
Market cap 325.23b 258.93b 1.78b

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