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Boeing vs. RTX: Which Aerospace Stock Is the Better Investment Choice?
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Key Takeaways
Boeing and RTX are benefiting from rising global air travel and expanding U.S. defense spending.
BA saw a 75% jump in Q1 commercial revenues, while RTX posted 8% organic growth on aftermarket strength.
BA outpaced RTX in recent stock performance and trades at a more attractive forward sales multiple.
As global travel continues to soar and defense budgets swell amid rising geopolitical tensions, investor interest in aerospace stocks climbs steadily. Two major beneficiaries of these twin tailwinds are The Boeing Company (BA - Free Report) and RTX Corporation (RTX - Free Report) , both of which share overlapping growth drivers. Their complementary business models offer investors diversified exposure across the aerospace value chain.
Boeing’s commercial unit is rebounding as rising global air traffic drives demand for new jets, while its defense arm benefits from higher U.S. military spending. RTX’s diversified model sees strong growth across commercial engines and aftermarket services, alongside defense gains from an increase in missile, radar and space system modernization trends.
With long-term defense contracts churning into robust backlogs and expanding global demand for next-generation aerospace technologies both in combat and commercial aviation, BA and RTX are well-positioned to capitalize on the industry growth trends and offer compelling investment cases.
So, the inevitable question arises for an investor: Which stock offers a more attractive risk-reward profile? To answer that, we must dig deeper into their financial metrics and growth catalysts, as well as analyze risks associated with investing in them.
Financial Stability & Growth Drivers: BA vs RTX
As of the first quarter of 2025, Boeing held $23.67 billion in cash and equivalents against $7.93 billion in current debt, indicating its strong near-term solvency. The jet maker also narrowed its operating cash outflow to $1.62 billion from $3.36 billion a year ago, signaling steady financial recovery, especially in its commercial segment.
In contrast, RTX reported $5.16 billion in cash and equivalents, with $3.06 billion in current debt and $38.24 billion in long-term debt. Despite its heavier long-term debt load, the company maintains solid short-term liquidity to support continued investments in advanced defense systems and commercial engine technologies.
As far as growth catalysts are concerned, both BA and RTX are poised to benefit from the expanding U.S. defense budget. In May 2025, the White House proposed a 13% increase in defense spending to $1.01 trillion for FY26, emphasizing space dominance. Boeing and RTX, both with strong space programs, stand to gain. RTX’s Raytheon unit offers full-spectrum space solutions, from ground control to on-orbit sensors, while Boeing serves as the prime contractor for key components of the U.S. Space Launch System.
The proposal also allocated funding worth $3.1 billion for F-15EX fighter jet production and $3.5 billion for the Next Generation Air Dominance platform, both built by Boeing. On the other hand, RTX should benefit from the $3.9 billion in hypersonic weapons and $2.5 billion in missile production funding offered by the proposal.
On the commercial side, as global air traffic continues to rise, Boeing’s commercial revenues jumped 75% year over year in the first quarter on higher jet deliveries. RTX also posted 8% organic sales growth, driven by double-digit aftermarket sales and modest OEM sales growth. With the International Air Transport Association projecting 5.8% year-over-year passenger traffic growth in 2025, both companies are well positioned to capitalize on strengthening commercial aviation trends.
Risks of Investing in Boeing vs. RTX
Despite its reputation as a leading commercial jet maker, Boeing continues to grapple with execution and reputational risks stemming from persistent quality control issues, particularly within its 737 MAX and 787 programs. A labor strike in September 2024, compounded by these issues, led to a temporary production halt and a significant buildup of 737 inventory, driving up storage and maintenance costs and pressuring the company’s bottom line.
Meanwhile, both Boeing and RTX are contending with broader industry challenges, including ongoing supply-chain disruptions and labor shortages. According to the 2024 “On the Horizon” Workforce Study, Aerospace Industries Association’s member attrition averaged 13% over the past two years — substantially higher than the U.S. national average of 3.8%. This elevated turnover heightens the risk of production delays and quality setbacks for both BA and RTX, as experienced workers exit the workforce.
Additionally, severe supply-chain bottlenecks are expected to remain a key growth inhibitor for the commercial aviation sector in 2025. These constraints threaten to reduce aircraft delivery volumes for manufacturers like Boeing and, in turn, limit engine and systems deliveries for suppliers like RTX, potentially weighing on both companies’ operational performance.
How Do Zacks Estimates Compare for BA & RTX?
The Zacks Consensus Estimate for Boeing’s 2025 sales implies a year-over-year rise of 28.1%, and the same for its loss also suggests an improvement. The stock’s annual bottom-line estimates have, however, moved south over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2025 sales implies a year-over-year rise of 4.2%, while that for its earnings suggests growth of 3.5%. The stock’s annual bottom-line estimates have, however, moved south over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: BA vs RTX
BA (up 33%) has outperformed RTX (up 26%) over the past three months, but has underperformed the same in the past year. Shares of BA have surged 22.9%, while those of RTX have grown 44.3% in the past year.
Image Source: Zacks Investment Research
Valuation of BA More Attractive Than That of RTX
RTX is trading at a forward sales multiple of 2.33, above BA’s 1.89.
Image Source: Zacks Investment Research
Conclusion
Both Boeing and RTX stand to benefit from robust defense spending and a resurgence in global air travel.
While RTX offers operational consistency and diversification, Boeing presents a more compelling risk-reward opportunity in 2025. Despite ongoing challenges — such as quality control issues and elevated production costs — Boeing is showing clear signs of recovery, with strong growth in commercial revenues, improved cash flow and its recent outperformance over RTX at the bourses.
For investors with a long-term horizon, Boeing’s cheaper valuation and commercial rebound make it the more lucrative investment choice in the aerospace sector at present.
While Boeing carries a Zacks Rank #3 (Hold), RTX holds a Zacks Rank #4 (Sell) currently.
Image: Bigstock
Boeing vs. RTX: Which Aerospace Stock Is the Better Investment Choice?
Key Takeaways
As global travel continues to soar and defense budgets swell amid rising geopolitical tensions, investor interest in aerospace stocks climbs steadily. Two major beneficiaries of these twin tailwinds are The Boeing Company (BA - Free Report) and RTX Corporation (RTX - Free Report) , both of which share overlapping growth drivers. Their complementary business models offer investors diversified exposure across the aerospace value chain.
Boeing’s commercial unit is rebounding as rising global air traffic drives demand for new jets, while its defense arm benefits from higher U.S. military spending. RTX’s diversified model sees strong growth across commercial engines and aftermarket services, alongside defense gains from an increase in missile, radar and space system modernization trends.
With long-term defense contracts churning into robust backlogs and expanding global demand for next-generation aerospace technologies both in combat and commercial aviation, BA and RTX are well-positioned to capitalize on the industry growth trends and offer compelling investment cases.
So, the inevitable question arises for an investor: Which stock offers a more attractive risk-reward profile? To answer that, we must dig deeper into their financial metrics and growth catalysts, as well as analyze risks associated with investing in them.
Financial Stability & Growth Drivers: BA vs RTX
As of the first quarter of 2025, Boeing held $23.67 billion in cash and equivalents against $7.93 billion in current debt, indicating its strong near-term solvency. The jet maker also narrowed its operating cash outflow to $1.62 billion from $3.36 billion a year ago, signaling steady financial recovery, especially in its commercial segment.
In contrast, RTX reported $5.16 billion in cash and equivalents, with $3.06 billion in current debt and $38.24 billion in long-term debt. Despite its heavier long-term debt load, the company maintains solid short-term liquidity to support continued investments in advanced defense systems and commercial engine technologies.
As far as growth catalysts are concerned, both BA and RTX are poised to benefit from the expanding U.S. defense budget. In May 2025, the White House proposed a 13% increase in defense spending to $1.01 trillion for FY26, emphasizing space dominance. Boeing and RTX, both with strong space programs, stand to gain. RTX’s Raytheon unit offers full-spectrum space solutions, from ground control to on-orbit sensors, while Boeing serves as the prime contractor for key components of the U.S. Space Launch System.
The proposal also allocated funding worth $3.1 billion for F-15EX fighter jet production and $3.5 billion for the Next Generation Air Dominance platform, both built by Boeing. On the other hand, RTX should benefit from the $3.9 billion in hypersonic weapons and $2.5 billion in missile production funding offered by the proposal.
On the commercial side, as global air traffic continues to rise, Boeing’s commercial revenues jumped 75% year over year in the first quarter on higher jet deliveries. RTX also posted 8% organic sales growth, driven by double-digit aftermarket sales and modest OEM sales growth. With the International Air Transport Association projecting 5.8% year-over-year passenger traffic growth in 2025, both companies are well positioned to capitalize on strengthening commercial aviation trends.
Risks of Investing in Boeing vs. RTX
Despite its reputation as a leading commercial jet maker, Boeing continues to grapple with execution and reputational risks stemming from persistent quality control issues, particularly within its 737 MAX and 787 programs. A labor strike in September 2024, compounded by these issues, led to a temporary production halt and a significant buildup of 737 inventory, driving up storage and maintenance costs and pressuring the company’s bottom line.
Meanwhile, both Boeing and RTX are contending with broader industry challenges, including ongoing supply-chain disruptions and labor shortages. According to the 2024 “On the Horizon” Workforce Study, Aerospace Industries Association’s member attrition averaged 13% over the past two years — substantially higher than the U.S. national average of 3.8%. This elevated turnover heightens the risk of production delays and quality setbacks for both BA and RTX, as experienced workers exit the workforce.
Additionally, severe supply-chain bottlenecks are expected to remain a key growth inhibitor for the commercial aviation sector in 2025. These constraints threaten to reduce aircraft delivery volumes for manufacturers like Boeing and, in turn, limit engine and systems deliveries for suppliers like RTX, potentially weighing on both companies’ operational performance.
How Do Zacks Estimates Compare for BA & RTX?
The Zacks Consensus Estimate for Boeing’s 2025 sales implies a year-over-year rise of 28.1%, and the same for its loss also suggests an improvement. The stock’s annual bottom-line estimates have, however, moved south over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2025 sales implies a year-over-year rise of 4.2%, while that for its earnings suggests growth of 3.5%. The stock’s annual bottom-line estimates have, however, moved south over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: BA vs RTX
BA (up 33%) has outperformed RTX (up 26%) over the past three months, but has underperformed the same in the past year. Shares of BA have surged 22.9%, while those of RTX have grown 44.3% in the past year.
Image Source: Zacks Investment Research
Valuation of BA More Attractive Than That of RTX
RTX is trading at a forward sales multiple of 2.33, above BA’s 1.89.
Image Source: Zacks Investment Research
Conclusion
Both Boeing and RTX stand to benefit from robust defense spending and a resurgence in global air travel.
While RTX offers operational consistency and diversification, Boeing presents a more compelling risk-reward opportunity in 2025. Despite ongoing challenges — such as quality control issues and elevated production costs — Boeing is showing clear signs of recovery, with strong growth in commercial revenues, improved cash flow and its recent outperformance over RTX at the bourses.
For investors with a long-term horizon, Boeing’s cheaper valuation and commercial rebound make it the more lucrative investment choice in the aerospace sector at present.
While Boeing carries a Zacks Rank #3 (Hold), RTX holds a Zacks Rank #4 (Sell) currently.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.