RTX vs. LMT, BA, GD, TDG, NOC, LHX, HEI, TATT, SIF, and LDOS
Should you be buying RTX stock or one of its competitors? The main competitors of RTX include Lockheed Martin (LMT), Boeing (BA), General Dynamics (GD), TransDigm Group (TDG), Northrop Grumman (NOC), L3Harris Technologies (LHX), HEICO (HEI), TAT Technologies (TATT), SIFCO Industries (SIF), and Leidos (LDOS). These companies are all part of the "aerospace" sector.
RTX (NYSE:RTX) and Lockheed Martin (NYSE:LMT) are both large-cap aerospace companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, community ranking, profitability, media sentiment, earnings, risk and valuation.
RTX has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Lockheed Martin has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.
RTX pays an annual dividend of $2.36 per share and has a dividend yield of 2.3%. Lockheed Martin pays an annual dividend of $12.60 per share and has a dividend yield of 2.7%. RTX pays out 92.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lockheed Martin pays out 46.1% of its earnings in the form of a dividend. Lockheed Martin is clearly the better dividend stock, given its higher yield and lower payout ratio.
In the previous week, Lockheed Martin had 4 more articles in the media than RTX. MarketBeat recorded 44 mentions for Lockheed Martin and 40 mentions for RTX. RTX's average media sentiment score of 0.48 beat Lockheed Martin's score of 0.44 indicating that RTX is being referred to more favorably in the media.
Lockheed Martin received 654 more outperform votes than RTX when rated by MarketBeat users. Likewise, 58.87% of users gave Lockheed Martin an outperform vote while only 55.79% of users gave RTX an outperform vote.
Lockheed Martin has lower revenue, but higher earnings than RTX. Lockheed Martin is trading at a lower price-to-earnings ratio than RTX, indicating that it is currently the more affordable of the two stocks.
RTX presently has a consensus price target of $98.33, suggesting a potential downside of 5.66%. Lockheed Martin has a consensus price target of $485.40, suggesting a potential upside of 4.12%. Given Lockheed Martin's stronger consensus rating and higher probable upside, analysts plainly believe Lockheed Martin is more favorable than RTX.
86.5% of RTX shares are owned by institutional investors. Comparatively, 74.2% of Lockheed Martin shares are owned by institutional investors. 0.1% of RTX shares are owned by company insiders. Comparatively, 0.2% of Lockheed Martin shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Lockheed Martin has a net margin of 9.73% compared to RTX's net margin of 4.90%. Lockheed Martin's return on equity of 85.96% beat RTX's return on equity.
Summary
Lockheed Martin beats RTX on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding RTX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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