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L3Harris Technologies Inc (LHX) vs RTX Corporation (RTX)

L3Harris Technologies Inc and RTX Corporation are both Aerospace & Defense companies. RTX Corporation is the larger, with a market value of $269.1B against $51.9B — 5.2× the size. L3Harris Technologies Inc trades at the lower P/E: 27.9× against 34.8×. RTX Corporation grew revenue faster over the last twelve months: 11.8% against 7.29%. RTX Corporation has the higher net margin (8.28% vs 8.11%) and the higher return on invested capital (6.74% vs 5.12%). Both pay a dividend; L3Harris Technologies Inc yields more (1.78% vs 1.41%). Across the 23 metrics below, L3Harris Technologies Inc leads on 13 and RTX Corporation on 10.

Valuation

Metric LHX RTX Aerospace & Defense median
P/E 27.92 34.83 32.30
P/S 2.26 2.89 3.38
P/B 2.60 3.97 2.87
Price to free cash flow 18.45 24.63 31.68
EV/EBITDA 16.65 20.13 18.91
EV/Sales 2.67 3.20 3.33
Earnings yield 3.58% 2.87% 0.95%
Free cash flow yield 5.42% 4.06% (0.02%)

Profitability

Metric LHX RTX Aerospace & Defense median
Gross margin 25.48% 20.35% 25.48%
Operating margin 10.49% 11.21% 2.45%
Net margin 8.11% 8.28% 1.96%
Free cash flow margin 12.24% 11.75% 0.00%
Return on equity 9.50% 11.70% 4.20%
Return on assets 4.42% 4.54% 1.29%
Return on invested capital 5.12% 6.74% 0.25%

Growth

Metric LHX RTX Aerospace & Defense median
Revenue growth (TTM) 7.29% 11.84% 18.08%
EPS growth (last fiscal year) 8.39% 39.72% 24.80%
Revenue growth, 5-year CAGR 3.74% 9.38% 9.73%
Net income growth, 5-year CAGR 7.49% 0.00% 0.00%

Health

Metric LHX RTX Aerospace & Defense median
Debt to equity 0.55 0.55 0.20
Current ratio 1.18 1.01 2.85
Net debt to EBITDA 2.68 2.23 1.32

Dividend

Metric LHX RTX Aerospace & Defense median
Dividend yield 1.78% 1.41% 1.00%
Payout ratio 0.50 0.50 0.32

Size

Metric LHX RTX Aerospace & Defense median
Market cap 51.85b 269.08b 2.17b

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