We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RTX vs. BA: Which Aerospace Player Holds Stronger Momentum Right Now?
Read MoreHide Full Article
Key Takeaways
RTX emerges stronger than Boeing due to better stock gains, lower debt and improving earnings outlook.
RTX benefits from defense demand, $100M Pratt & Whitney investment and jammer delivery to Australia.
Boeing posted 14% revenue growth and Dreamliner orders but carries high debt and weaker ROIC.
Rising global defense budgets and the recovery of commercial aviation demand continue to support growth across the aerospace sector, benefiting players like RTX Corporation (RTX - Free Report) and The Boeing Company (BA - Free Report) . Both companies maintain substantial order backlogs, offering solid revenue visibility and long-term growth potential.
RTX stands out with its diversified portfolio spanning commercial aerospace, defense systems and advanced technologies. Its Pratt & Whitney engines and Collins Aerospace systems are seeing steady demand from the ongoing recovery in global air travel, while its defense segment benefits from strong demand for missile systems, radar and next-generation military technologies.
In contrast, Boeing maintains a broad aerospace and defense presence, with operations spanning commercial airplanes, defense platforms, space systems and global services. Its defense, space and security segment supports military aircraft, autonomous systems and satellite programs, while its services business provides aftermarket support and logistics solutions, contributing to its overall growth profile.
With defense spending increasing worldwide and geopolitical tensions rising, both companies are well-positioned for continued growth. However, deciding which stock is stronger right now depends on comparing their individual strengths.
Tailwinds for BA
BA is supported by its strong quarterly results and notable contract wins, which have helped sustain investor confidence. In April 2026, the company reported its first-quarter 2026 results, showing revenue growth of 14% and an improvement in net losses compared with the same period last year.
Earlier this month, Boeing announced that Ethiopian Airlines had finalized the purchase of six 787 Dreamliner jets, fully exercising commitments from its landmark 2023 order. The airline plans to deploy the 787-9 aircraft to expand its intercontinental network from Addis Ababa while also boosting cargo capacity amid rising demand for long-haul travel.
Moreover, Boeing is expanding its space production capacity and broadening its satellite portfolio. This move reflects a strategic effort to enable government and commercial customers to deploy capabilities faster and with greater flexibility, while strengthening its position in the evolving space and satellite market.
Tailwinds for RTX
RTX is also supported by its strong quarterly results, strategic investments and some notable contract wins, which together contributed to investors’ optimism. The company released its first-quarter 2026 results in April 2026, wherein it reported solid revenue growth of 8.7%. The bottom line also improved 21.1% from the year-ago quarter.
Earlier in the month, RTX announced that its Pratt & Whitney unit is investing $100 million in its facility in Rzeszów to expand production capacity and enhance advanced manufacturing capabilities. The investment is aimed at meeting growing global demand for its commercial and military engines, including the GTF, F135 and F100 programs, while strengthening support for both civil aviation and defense customers.
Moreover, RTX, through its Raytheon business, has delivered its first Next Generation Jammer pods to the Royal Australian Air Force. This development highlights progress in a cooperative program aimed at strengthening airborne electronic attack capabilities, while reinforcing RTX’s position in advanced defense technologies designed to support modern military operations.
How Does the Zacks Consensus Estimate Compare for BA & RTX?
The Zacks Consensus Estimate for Boeing’s 2026 sales implies a year-over-year rise of 7.5%, and the same for losses suggests an improvement. The stock’s annual bottom-line estimates have moved south over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 sales and earnings per share (EPS) implies an improvement of 5.3% and 8.9%, respectively, from the year-ago quarter’s reported figures. The stock’s annual bottom-line estimates have moved north over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: BA & RTX
In the past year, RTX has outperformed BA. While RTX’s shares surged 39.7%, BA surged 27.5%.
Image Source: Zacks Investment Research
Valuation for BA & RTX
Boeing is trading at a forward sales multiple (P/E F12M) of 1.82, below RTX’s forward sales multiple of 2.46.
Image Source: Zacks Investment Research
Debt Performance: BA & RTX
BA is highly debt-ridden when compared with RTX, as evident from the image below, which reflects its total debt-to-capital ratio. BA has a total debt-to-capital ratio of 90.84, while RTX has a total debt-to-capital ratio of 36.10.
ROIC
RTX’s Return on Invested Capital (ROIC) stands at 6.03%. In contrast, Boeing reports a negative ROIC of 9.26%, indicating weaker capital efficiency. This comparison highlights RTX’s stronger ability to generate returns from its investments relative to Boeing.
Final Call
With strong global defense spending, both Boeing and RTX remain well-positioned. While Boeing benefits from notable defense and commercial programs, its higher debt levels and weaker stock performance limit its near-term appeal.
RTX, on the other hand, offers a balanced mix of commercial and defense exposure, improving earnings expectations and stronger contract momentum. It also carries much lower debt and has clearly outperformed Boeing over the past year.
Both RTX and BA currently carry a Zacks Rank #3 (Hold), but given RTX’s healthier balance sheet and better recent share performance, it stands out as the stronger choice right now.
View the Zacks #1 Rank List
Image: Bigstock
RTX vs. BA: Which Aerospace Player Holds Stronger Momentum Right Now?
Key Takeaways
Rising global defense budgets and the recovery of commercial aviation demand continue to support growth across the aerospace sector, benefiting players like RTX Corporation (RTX - Free Report) and The Boeing Company (BA - Free Report) . Both companies maintain substantial order backlogs, offering solid revenue visibility and long-term growth potential.
RTX stands out with its diversified portfolio spanning commercial aerospace, defense systems and advanced technologies. Its Pratt & Whitney engines and Collins Aerospace systems are seeing steady demand from the ongoing recovery in global air travel, while its defense segment benefits from strong demand for missile systems, radar and next-generation military technologies.
In contrast, Boeing maintains a broad aerospace and defense presence, with operations spanning commercial airplanes, defense platforms, space systems and global services. Its defense, space and security segment supports military aircraft, autonomous systems and satellite programs, while its services business provides aftermarket support and logistics solutions, contributing to its overall growth profile.
With defense spending increasing worldwide and geopolitical tensions rising, both companies are well-positioned for continued growth. However, deciding which stock is stronger right now depends on comparing their individual strengths.
Tailwinds for BA
BA is supported by its strong quarterly results and notable contract wins, which have helped sustain investor confidence. In April 2026, the company reported its first-quarter 2026 results, showing revenue growth of 14% and an improvement in net losses compared with the same period last year.
Earlier this month, Boeing announced that Ethiopian Airlines had finalized the purchase of six 787 Dreamliner jets, fully exercising commitments from its landmark 2023 order. The airline plans to deploy the 787-9 aircraft to expand its intercontinental network from Addis Ababa while also boosting cargo capacity amid rising demand for long-haul travel.
Moreover, Boeing is expanding its space production capacity and broadening its satellite portfolio. This move reflects a strategic effort to enable government and commercial customers to deploy capabilities faster and with greater flexibility, while strengthening its position in the evolving space and satellite market.
Tailwinds for RTX
RTX is also supported by its strong quarterly results, strategic investments and some notable contract wins, which together contributed to investors’ optimism. The company released its first-quarter 2026 results in April 2026, wherein it reported solid revenue growth of 8.7%. The bottom line also improved 21.1% from the year-ago quarter.
Earlier in the month, RTX announced that its Pratt & Whitney unit is investing $100 million in its facility in Rzeszów to expand production capacity and enhance advanced manufacturing capabilities. The investment is aimed at meeting growing global demand for its commercial and military engines, including the GTF, F135 and F100 programs, while strengthening support for both civil aviation and defense customers.
Moreover, RTX, through its Raytheon business, has delivered its first Next Generation Jammer pods to the Royal Australian Air Force. This development highlights progress in a cooperative program aimed at strengthening airborne electronic attack capabilities, while reinforcing RTX’s position in advanced defense technologies designed to support modern military operations.
How Does the Zacks Consensus Estimate Compare for BA & RTX?
The Zacks Consensus Estimate for Boeing’s 2026 sales implies a year-over-year rise of 7.5%, and the same for losses suggests an improvement. The stock’s annual bottom-line estimates have moved south over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 sales and earnings per share (EPS) implies an improvement of 5.3% and 8.9%, respectively, from the year-ago quarter’s reported figures. The stock’s annual bottom-line estimates have moved north over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: BA & RTX
In the past year, RTX has outperformed BA. While RTX’s shares surged 39.7%, BA surged 27.5%.
Image Source: Zacks Investment Research
Valuation for BA & RTX
Boeing is trading at a forward sales multiple (P/E F12M) of 1.82, below RTX’s forward sales multiple of 2.46.
Image Source: Zacks Investment Research
Debt Performance: BA & RTX
BA is highly debt-ridden when compared with RTX, as evident from the image below, which reflects its total debt-to-capital ratio. BA has a total debt-to-capital ratio of 90.84, while RTX has a total debt-to-capital ratio of 36.10.
ROIC
RTX’s Return on Invested Capital (ROIC) stands at 6.03%. In contrast, Boeing reports a negative ROIC of 9.26%, indicating weaker capital efficiency. This comparison highlights RTX’s stronger ability to generate returns from its investments relative to Boeing.
Final Call
With strong global defense spending, both Boeing and RTX remain well-positioned. While Boeing benefits from notable defense and commercial programs, its higher debt levels and weaker stock performance limit its near-term appeal.
RTX, on the other hand, offers a balanced mix of commercial and defense exposure, improving earnings expectations and stronger contract momentum. It also carries much lower debt and has clearly outperformed Boeing over the past year.
Both RTX and BA currently carry a Zacks Rank #3 (Hold), but given RTX’s healthier balance sheet and better recent share performance, it stands out as the stronger choice right now.
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.