Honeywell Aerospace inc. (HONA) vs RTX Corporation (RTX)

Honeywell Aerospace inc. and RTX Corporation are both Aerospace & Defense companies. RTX Corporation is the larger, with a market value of $258.9B against $47.4B — 5.5× the size. Honeywell Aerospace inc. has the higher net margin (13.7% vs 8.75%) and the higher return on invested capital (19.8% vs 7.12%). Only RTX Corporation pays a dividend (1.47%). Across the 14 metrics below, Honeywell Aerospace inc. leads on 8 and RTX Corporation on 6.

Valuation

Metric HONA RTX Aerospace & Defense median
P/E — 30.88 28.48
P/S 2.64 2.71 2.95
P/B n/m 3.67 2.68
Price to free cash flow n/m 28.50 31.70
EV/EBITDA 15.60 18.39 16.85
EV/Sales 3.43 3.00 2.74
Earnings yield — 3.24% 0.89%
Free cash flow yield 0.00% 3.51% 0.00%

Profitability

Metric HONA RTX Aerospace & Defense median
Gross margin 36.23% 21.10% 26.41%
Operating margin 20.84% 11.77% 3.69%
Net margin 13.68% 8.75% 2.74%
Free cash flow margin 0.00% 9.51% 0.00%
Return on equity 0.00% 12.24% 4.44%
Return on assets 0.00% 4.87% 1.90%
Return on invested capital 19.84% 7.12% 0.26%

Growth

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

Health

Metric HONA RTX Aerospace & Defense median
Debt to equity (6.37) 0.53 0.20
Current ratio 1.64 1.05 2.85
Net debt to EBITDA — 2.23 1.29

Dividend

Metric HONA RTX Aerospace & Defense median
Dividend yield 0.00% 1.47% 0.91%
Payout ratio — 0.46 0.30

Size

Metric HONA RTX Aerospace & Defense median
Market cap 47.42b 258.93b 1.78b

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