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AVAV vs. RTX: Which Aerospace-Defense Stock Offers More Potential?
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Key Takeaways
RTX shares rose 19.1% in the past year, while AVAV fell 48.3%, highlighting contrasting stock trends.
RTX posts a 13.99% ROE versus AeroVironment's 4.04% and trades at a lower forward P/S multiple.
AeroVironment secured major laser-system orders, while RTX expanded aftermarket and MRO agreements.
As military forces increasingly rely on autonomous strike systems and precision-guided weapons, investor interest is growing in companies developing advanced tactical defense technologies. Two notable players in this space are AeroVironment, Inc. (AVAV - Free Report) and RTX Corporation (RTX - Free Report) . Both companies provide precision strike and missile-related solutions aimed at improving targeting, threat engagement and overall battlefield effectiveness.
Defense strategies are increasingly focused on technologies that can identify, track and counter threats with greater speed and accuracy. Loitering munitions, missile systems, interceptors and advanced targeting solutions are playing a growing role in military modernization programs. These capabilities can enhance response times, mission effectiveness and operational flexibility in contested environments. With governments continuing to increase spending on sophisticated strike and missile-defense systems, demand for these technologies is likely to remain supported.
Let’s compare the fundamentals of AeroVironment and RTX to assess how the two stocks currently stack up.
Tailwinds for AVAV
AeroVironment continues to benefit from rising demand for counter-drone and directed-energy defense systems, supported by major contract wins and growing international interest.
In September 2026, AVAV received its first international purchase order for its LOCUST Laser Weapon System, valued at more than $50 million. The order includes initial system deliveries and related support, marking an important step in the global adoption of AV’s counter-drone technology.
Earlier in the month, AVAV was awarded a $464.8 million U.S. Army contract for its Enduring-High Energy Laser (E-HEL) program. The award represents the first production contract for high-energy laser weapon systems in U.S. history, highlighting growing demand for AV’s directed-energy capabilities.
Tailwinds for RTX
RTX continues to benefit from strong demand for aftermarket services, strategic partnerships and MRO capabilities, supporting growth across its commercial aerospace and defense businesses.
In September 2026, Collins Aerospace and ST Engineering signed three multi-year agreements to expand component support for airlines. The deals include repair services for Boeing 787 components, expanded spare parts support and continued repairs for Airbus A320 and Boeing 737 components. These agreements are expected to improve repair turnaround times and strengthen RTX’s aftermarket business.
Additionally, Pratt & Whitney Canada signed a four-year agreement with AirBorneo Airways to provide MRO services for the PW127M engines powering its ATR 72-500 fleet through 2030. The engines will primarily be serviced at its Singapore facility, where recent investments have expanded turboprop MRO capabilities and strengthened customer support in the Asia-Pacific region.
How Does the Zacks Consensus Estimate Compare for AVAV & RTX?
The Zacks Consensus Estimate for AVAV’s fiscal 2027 sales implies a year-over-year rise of 11.7%, and the same for earnings per share (EPS) suggests a decline of 1.8%. The stock’s fiscal 2027 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 EPS implies an improvement of 8.4% and 14.8%, 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
Return on Equity (ROE) of AVAV & RTX
ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. Currently, AeroVironment’s ROE is 4.04% compared with RTX’s 13.99%.
AVAV & RTX’s Price Performance
In the past year, RTX has outperformed AVAV. While RTX’s shares surged 19.1%, AVAV lost 48.3%.
Image Source: Zacks Investment Research
Valuation for AVAV & RTX
AVAV shares trade at a forward 12-month Price/Sales (P/S F12M) multiple of 3.39 compared with RTX’s P/S F12M of 2.57.
Image Source: Zacks Investment Research
AVAV vs. RTX: Which Stock Looks More Compelling Now?
Both AeroVironment and RTX are positioned to benefit from rising demand for advanced defense technologies. AeroVironment focuses on autonomous systems, loitering munitions, counter-drone solutions and directed-energy weapons, while RTX has a broader portfolio spanning missiles, interceptors, smart weapons, and air and missile defense systems.
Based on the current comparison, RTX appears to have the stronger fundamentals, supported by its better recent stock performance, higher ROE, more attractive valuation and more favorable earnings estimate trends.
View the Zacks #1 Rank List
Image: Bigstock
AVAV vs. RTX: Which Aerospace-Defense Stock Offers More Potential?
Key Takeaways
As military forces increasingly rely on autonomous strike systems and precision-guided weapons, investor interest is growing in companies developing advanced tactical defense technologies. Two notable players in this space are AeroVironment, Inc. (AVAV - Free Report) and RTX Corporation (RTX - Free Report) . Both companies provide precision strike and missile-related solutions aimed at improving targeting, threat engagement and overall battlefield effectiveness.
Defense strategies are increasingly focused on technologies that can identify, track and counter threats with greater speed and accuracy. Loitering munitions, missile systems, interceptors and advanced targeting solutions are playing a growing role in military modernization programs. These capabilities can enhance response times, mission effectiveness and operational flexibility in contested environments. With governments continuing to increase spending on sophisticated strike and missile-defense systems, demand for these technologies is likely to remain supported.
Let’s compare the fundamentals of AeroVironment and RTX to assess how the two stocks currently stack up.
Tailwinds for AVAV
AeroVironment continues to benefit from rising demand for counter-drone and directed-energy defense systems, supported by major contract wins and growing international interest.
In September 2026, AVAV received its first international purchase order for its LOCUST Laser Weapon System, valued at more than $50 million. The order includes initial system deliveries and related support, marking an important step in the global adoption of AV’s counter-drone technology.
Earlier in the month, AVAV was awarded a $464.8 million U.S. Army contract for its Enduring-High Energy Laser (E-HEL) program. The award represents the first production contract for high-energy laser weapon systems in U.S. history, highlighting growing demand for AV’s directed-energy capabilities.
Tailwinds for RTX
RTX continues to benefit from strong demand for aftermarket services, strategic partnerships and MRO capabilities, supporting growth across its commercial aerospace and defense businesses.
In September 2026, Collins Aerospace and ST Engineering signed three multi-year agreements to expand component support for airlines. The deals include repair services for Boeing 787 components, expanded spare parts support and continued repairs for Airbus A320 and Boeing 737 components. These agreements are expected to improve repair turnaround times and strengthen RTX’s aftermarket business.
Additionally, Pratt & Whitney Canada signed a four-year agreement with AirBorneo Airways to provide MRO services for the PW127M engines powering its ATR 72-500 fleet through 2030. The engines will primarily be serviced at its Singapore facility, where recent investments have expanded turboprop MRO capabilities and strengthened customer support in the Asia-Pacific region.
How Does the Zacks Consensus Estimate Compare for AVAV & RTX?
The Zacks Consensus Estimate for AVAV’s fiscal 2027 sales implies a year-over-year rise of 11.7%, and the same for earnings per share (EPS) suggests a decline of 1.8%. The stock’s fiscal 2027 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 EPS implies an improvement of 8.4% and 14.8%, 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
Return on Equity (ROE) of AVAV & RTX
ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. Currently, AeroVironment’s ROE is 4.04% compared with RTX’s 13.99%.
AVAV & RTX’s Price Performance
In the past year, RTX has outperformed AVAV. While RTX’s shares surged 19.1%, AVAV lost 48.3%.
Image Source: Zacks Investment Research
Valuation for AVAV & RTX
AVAV shares trade at a forward 12-month Price/Sales (P/S F12M) multiple of 3.39 compared with RTX’s P/S F12M of 2.57.
Image Source: Zacks Investment Research
AVAV vs. RTX: Which Stock Looks More Compelling Now?
Both AeroVironment and RTX are positioned to benefit from rising demand for advanced defense technologies. AeroVironment focuses on autonomous systems, loitering munitions, counter-drone solutions and directed-energy weapons, while RTX has a broader portfolio spanning missiles, interceptors, smart weapons, and air and missile defense systems.
Based on the current comparison, RTX appears to have the stronger fundamentals, supported by its better recent stock performance, higher ROE, more attractive valuation and more favorable earnings estimate trends.
RTX carries a Zacks Rank #2 (Buy) at present, while AVAV carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.