RTX CORPORATION vs TransDigm Group Incorporated, two Aerospace & Defense stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
RTX and TransDigm both draw on aerospace, but they sit at opposite ends of it. RTX is the $256.5B prime blending defense with commercial jet engines, earning 10.67% on equity and 8.03% on revenue, converting cash at 3.3%, paying a 1.42% dividend, no net debt, priced at 35.26 times earnings and 3.77 times book. TransDigm is the narrower, richer play, proprietary components at a 21.91% net margin, priced at 41.34 times earnings, a $77.1B cap, leaning on debt to lift returns. RTX gives you scale, diversification, and a clean balance sheet. TransDigm gives you a fatter margin on irreplaceable parts at a fuller multiple.
Comparison updated 2026-07-11.
| Metric | RTX | TDG |
|---|---|---|
| Price | $195.96 | $1291.90 |
| Market cap | $267.4B | $75.2B |
| Sector | Aerospace & Defense | Aerospace & Defense |
| Stage | Mature | Growth |
| Implied growth (priced in) | +22.6% | +13.1% |
| P/E | 36.8 | 40.3 |
| P/B | 3.93 | — |
| P/S | 2.96 | 7.91 |
| EV/EBITDA | 26.6 | 22.2 |
| Revenue growth | +10.5% | +13.3% |
| Gross margin | — | 59.4% |
| Operating margin | 11.6% | 46.3% |
| Net margin | 8.0% | 21.9% |
| Return on equity | 10.7% | — |
| Return on assets | 4.3% | 8.2% |
| Return on invested capital | 12.3% | 15.4% |
| FCF yield | 3.2% | 2.5% |
| Dividend yield | 1.4% | — |
| Debt / equity | 0.00 | — |
| Current ratio | 1.02 | 3.52 |
| Altman Z (solvency) | 2.63 | 1.58 |
| Piotroski F (quality) | 6 / 9 | 7 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.