RTX (NYSE:RTX) & StandardAero (NYSE:SARO) Critical Analysis

RTX (NYSE:RTX) and StandardAero (NYSE:SARO) are both aerospace companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Earnings and Valuation

This table compares RTX and StandardAero”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RTX	$79.04 billion	1.97	$3.20 billion	$3.50	33.35
StandardAero	$4.99 billion	1.72	N/A	N/A	N/A

RTX has higher revenue and earnings than StandardAero.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for RTX and StandardAero, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RTX	0	7	5	2	2.64
StandardAero	0	3	6	1	2.80

RTX currently has a consensus target price of $177.93, indicating a potential upside of 52.46%. StandardAero has a consensus target price of $35.67, indicating a potential upside of 39.43%. Given RTX’s higher probable upside, equities analysts plainly believe RTX is more favorable than StandardAero.

Profitability

This table compares RTX and StandardAero’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RTX	5.97%	11.96%	4.56%
StandardAero	N/A	N/A	N/A

Insider and Institutional Ownership

86.5% of RTX shares are held by institutional investors. 0.1% of RTX shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

RTX beats StandardAero on 9 of the 11 factors compared between the two stocks.

About RTX

RTX Corporation, an aerospace and defense company, provides systems and services for the commercial, military, and government customers in the United States and internationally. It operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems segment offers aerospace and defense products, and aftermarket service solutions for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations. This segment also designs, produces, and supports cabin interior, including oxygen systems, food and beverage preparation, storage and galley systems, and lavatory and wastewater management systems; battlespace, test and training range systems, crew escape systems, and simulation and training solutions; information management services; and aftermarket services that include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services. Its Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units. The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for U.S., foreign government, and commercial customers. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.

About StandardAero

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.