RTX vs. LMT, BA, GD, NOC, TDG, LHX, HEI, TATT, TDY, and TXT
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), Northrop Grumman (NOC), TransDigm Group (TDG), L3Harris Technologies (LHX), HEICO (HEI), TAT Technologies (TATT), Teledyne Technologies (TDY), and Textron (TXT). These companies are all part of the "aerospace" sector.
Lockheed Martin (NYSE:LMT) and RTX (NYSE:RTX) are both large-cap aerospace companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, media sentiment, valuation, dividends, institutional ownership, community ranking and analyst recommendations.
Lockheed Martin has a net margin of 9.73% compared to Lockheed Martin's net margin of 4.90%. RTX's return on equity of 85.96% beat Lockheed Martin's return on equity.
74.2% of Lockheed Martin shares are owned by institutional investors. Comparatively, 86.5% of RTX shares are owned by institutional investors. 0.2% of Lockheed Martin shares are owned by insiders. Comparatively, 0.1% of RTX shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
In the previous week, RTX had 13 more articles in the media than Lockheed Martin. MarketBeat recorded 69 mentions for RTX and 56 mentions for Lockheed Martin. RTX's average media sentiment score of 0.63 beat Lockheed Martin's score of 0.47 indicating that Lockheed Martin is being referred to more favorably in the media.
Lockheed Martin pays an annual dividend of $12.60 per share and has a dividend yield of 2.7%. RTX pays an annual dividend of $2.36 per share and has a dividend yield of 2.3%. Lockheed Martin pays out 46.1% of its earnings in the form of a dividend. 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 has increased its dividend for 21 consecutive years and RTX has increased its dividend for 3 consecutive years. Lockheed Martin is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Lockheed Martin received 655 more outperform votes than RTX when rated by MarketBeat users. Likewise, 58.87% of users gave Lockheed Martin an outperform vote while only 55.85% of users gave RTX an outperform vote.
Lockheed Martin currently has a consensus target price of $485.40, suggesting a potential upside of 4.96%. RTX has a consensus target price of $96.27, suggesting a potential downside of 5.17%. Given RTX's stronger consensus rating and higher probable upside, equities analysts clearly believe Lockheed Martin is more favorable than RTX.
Lockheed Martin has higher earnings, but lower revenue 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.
Lockheed Martin has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, RTX has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
Summary
Lockheed Martin beats RTX on 14 of the 21 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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