Rocket Lab Corporation (RKLB) vs RTX Corporation (RTX)

Rocket Lab Corporation and RTX Corporation are both Aerospace & Defense companies. RTX Corporation is the larger, with a market value of $253.9B against $44.8B — 5.7× the size. Rocket Lab Corporation has negative trailing earnings, so its P/E is not meaningful; RTX Corporation trades at 32.9×. Rocket Lab Corporation grew revenue faster over the last twelve months: 52.5% against 11.8%. RTX Corporation has the higher net margin (8.28% vs −21.5%) and the higher return on invested capital (6.74% vs −11.5%). Across the 18 metrics below, RTX Corporation leads on 13 and Rocket Lab Corporation on 5.

Valuation

Metric RKLB RTX Aerospace & Defense median
P/E n/m 32.94 33.00
P/S 60.54 2.74 3.63
P/B 13.33 3.76 3.24
Price to free cash flow n/m 23.29 34.01
EV/EBITDA n/m 19.14 18.69
EV/Sales 57.61 3.05 3.94
Earnings yield (0.37%) 3.04% 1.31%
Free cash flow yield (0.79%) 4.29% 0.00%

Profitability

Metric RKLB RTX Aerospace & Defense median
Gross margin 37.26% 20.35% 25.48%
Operating margin (29.06%) 11.21% 4.54%
Net margin (21.51%) 8.28% 2.22%
Free cash flow margin (48.13%) 11.75% 0.00%
Return on equity (7.92%) 11.70% 6.43%
Return on assets (5.76%) 4.54% 2.70%
Return on invested capital (11.46%) 6.74% 1.56%

Growth

Metric RKLB RTX Aerospace & Defense median
Revenue growth (TTM) 52.53% 11.84% 18.43%
EPS growth (last fiscal year) 2.63% 39.72% —
Revenue growth, 5-year CAGR 76.47% 9.38% 9.62%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RKLB RTX Aerospace & Defense median
Debt to equity 0.01 0.55 0.24
Current ratio 5.48 1.01 2.72
Net debt to EBITDA 4.66 2.23 1.12

Dividend

Metric RKLB RTX Aerospace & Defense median
Dividend yield — 2.71% 1.04%
Payout ratio 0.00 0.59 0.00

Size

Metric RKLB RTX Aerospace & Defense median
Market cap 44.78b 253.92b 2.52b

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