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RTX vs. TDY: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Aerospace - Defense Equipment sector might want to consider either Raytheon Technologies (RTX - Free Report) or Teledyne Technologies (TDY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Raytheon Technologies and Teledyne Technologies are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
RTX currently has a forward P/E ratio of 20.52, while TDY has a forward P/E of 22.86. We also note that RTX has a PEG ratio of 2.46. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TDY currently has a PEG ratio of 3.37.
Another notable valuation metric for RTX is its P/B ratio of 2.04. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TDY has a P/B of 2.51.
These are just a few of the metrics contributing to RTX's Value grade of B and TDY's Value grade of C.
Both RTX and TDY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RTX is the superior value option right now.
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RTX vs. TDY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Aerospace - Defense Equipment sector might want to consider either Raytheon Technologies (RTX - Free Report) or Teledyne Technologies (TDY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Raytheon Technologies and Teledyne Technologies are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
RTX currently has a forward P/E ratio of 20.52, while TDY has a forward P/E of 22.86. We also note that RTX has a PEG ratio of 2.46. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TDY currently has a PEG ratio of 3.37.
Another notable valuation metric for RTX is its P/B ratio of 2.04. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TDY has a P/B of 2.51.
These are just a few of the metrics contributing to RTX's Value grade of B and TDY's Value grade of C.
Both RTX and TDY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RTX is the superior value option right now.