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RTX vs. GD: Which Defense Stock Has Greater Upside Potential?
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Key Takeaways
RTX leads in projected 2026 sales and earnings growth, with stronger stock performance over the past year.
RTX's 2026 sales and EPS are projected to rise 8.5% and 19.2%, versus 6.4% and 9.8% for GD, respectively.
GD trades at 19.09 times forward earnings versus RTX's 24.21, while both benefit from defense demand.
Growing defense budgets in the United States and allied nations, fueled by rising geopolitical tensions, are boosting demand for advanced military research, development and procurement. This trend is creating favorable growth prospects for major defense contractors such as RTX Corporation (RTX - Free Report) and General Dynamics (GD - Free Report) . Both companies benefit from sizable, long-term contracts covering missiles, radar systems, naval vessels and other essential defense technologies. Their presence in the commercial aerospace industry also provides business diversification and supports revenue stability.
RTX has a diversified portfolio that includes commercial and military aircraft engines, aerostructures, advanced missiles, sensors, radars and interceptors. General Dynamics, meanwhile, has a strong position in naval shipbuilding, complemented by its businesses in business jets, munitions and wheeled and tracked combat vehicles.
With global defense spending likely to remain on an upward trajectory amid escalating regional conflicts and security concerns, both companies are positioned to benefit from sustained demand for military equipment and modernization programs.
Against this backdrop, investors looking to capitalize on long-term opportunities in the defense sector may consider evaluating RTX and GD. A closer comparison of their financial performance, growth catalysts and potential risks can help determine which stock offers a more attractive investment opportunity.
Tailwinds for RTX
RTX’s recent performance has benefited from strategic investments in manufacturing, defense contracts and next-generation engine development, supporting growth across its aerospace and defense businesses.
In October 2026, Pratt & Whitney announced a $100 million investment to expand its Rzeszów facility in Poland, boosting production of critical components for GTF, F135 and F100 engines. The facility is expected to become operational in 2028 and create more than 120 jobs.
During the month, Raytheon UK secured contracts to supply Landshield and Landshield Plus GPS anti-jamming systems to the Swedish military, enhancing navigation reliability against electronic warfare threats.
Additionally, Pratt & Whitney Canada unveiled a new turboprop engine that delivers 33% more power at altitude and reduces fuel consumption by 20% compared with previous-generation engines.
Tailwinds for GD
General Dynamics’ performance has benefited from strong contract wins across defense, naval shipbuilding and government IT services. Its growing backlog and healthy order activity support long-term revenue visibility.
In August 2026, General Dynamics Information Technology (GDIT) secured a contract to provide enterprise IT and cybersecurity services to the Army National Guard and other federal government partners, including network modernization and AI-driven capabilities.
The company also benefits from rising demand for naval vessels, combat vehicles and munitions, driven by U.S. defense priorities and increasing military requirements across Europe. Its international presence creates opportunities for additional contract wins.
GD’s diversified businesses, multiyear defense programs and investments in production capacity are expected to support sustained demand and long-term growth.
How Does the Zacks Consensus Estimate Compare for RTX & GD?
The Zacks Consensus Estimate for RTX’s 2026 sales and earnings per share (EPS) implies an improvement of 8.5% and 19.2%, respectively, from the year-ago quarter’s reported figures. RTX’s EPS estimates for 2026 and 2027 have moved north over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GD’s 2026 sales and EPS implies an improvement of 6.4% and 9.8%, respectively, from the year-ago quarter’s reported figures. GD’s EPS estimates for 2026 and 2027 have moved north over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: RTX vs. GD
In the past year, RTX has outperformed GD. While RTX’s shares surged 6.5%, GD declined 1.3%.
Image Source: Zacks Investment Research
RTX’s Valuation More Attractive Than GD
GD is trading at a forward earnings multiple (P/E F12M) of 19.09, below RTX’s forward earnings multiple of 24.21.
Image Source: Zacks Investment Research
Final Call
While both RTX and General Dynamics benefit from rising defense budgets and diversified business portfolios, RTX appears better positioned due to its stronger stock price performance and better projected sales and earnings growth. RTX’s diversified portfolio across defense, commercial aerospace and space, supported by strategic investments in manufacturing capacity, next-generation engine development and recent defense contract wins, strengthens its long-term growth prospects.
Although General Dynamics benefits from a strong backlog, rising demand for naval vessels and combat vehicles, and expanding government IT services, RTX’s stronger growth outlook and upward revisions to its earnings estimates make it a more compelling investment choice. Both companies are positioned to benefit from sustained defense spending and military modernization programs, but RTX’s superior stock performance and growth prospects give it an edge for investors seeking opportunities in the defense and aerospace sector.
RTX carries a Zacks Rank #2 (Buy) and General Dynamics currently carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
RTX vs. GD: Which Defense Stock Has Greater Upside Potential?
Key Takeaways
Growing defense budgets in the United States and allied nations, fueled by rising geopolitical tensions, are boosting demand for advanced military research, development and procurement. This trend is creating favorable growth prospects for major defense contractors such as RTX Corporation (RTX - Free Report) and General Dynamics (GD - Free Report) . Both companies benefit from sizable, long-term contracts covering missiles, radar systems, naval vessels and other essential defense technologies. Their presence in the commercial aerospace industry also provides business diversification and supports revenue stability.
RTX has a diversified portfolio that includes commercial and military aircraft engines, aerostructures, advanced missiles, sensors, radars and interceptors. General Dynamics, meanwhile, has a strong position in naval shipbuilding, complemented by its businesses in business jets, munitions and wheeled and tracked combat vehicles.
With global defense spending likely to remain on an upward trajectory amid escalating regional conflicts and security concerns, both companies are positioned to benefit from sustained demand for military equipment and modernization programs.
Against this backdrop, investors looking to capitalize on long-term opportunities in the defense sector may consider evaluating RTX and GD. A closer comparison of their financial performance, growth catalysts and potential risks can help determine which stock offers a more attractive investment opportunity.
Tailwinds for RTX
RTX’s recent performance has benefited from strategic investments in manufacturing, defense contracts and next-generation engine development, supporting growth across its aerospace and defense businesses.
In October 2026, Pratt & Whitney announced a $100 million investment to expand its Rzeszów facility in Poland, boosting production of critical components for GTF, F135 and F100 engines. The facility is expected to become operational in 2028 and create more than 120 jobs.
During the month, Raytheon UK secured contracts to supply Landshield and Landshield Plus GPS anti-jamming systems to the Swedish military, enhancing navigation reliability against electronic warfare threats.
Additionally, Pratt & Whitney Canada unveiled a new turboprop engine that delivers 33% more power at altitude and reduces fuel consumption by 20% compared with previous-generation engines.
Tailwinds for GD
General Dynamics’ performance has benefited from strong contract wins across defense, naval shipbuilding and government IT services. Its growing backlog and healthy order activity support long-term revenue visibility.
In August 2026, General Dynamics Information Technology (GDIT) secured a contract to provide enterprise IT and cybersecurity services to the Army National Guard and other federal government partners, including network modernization and AI-driven capabilities.
The company also benefits from rising demand for naval vessels, combat vehicles and munitions, driven by U.S. defense priorities and increasing military requirements across Europe. Its international presence creates opportunities for additional contract wins.
GD’s diversified businesses, multiyear defense programs and investments in production capacity are expected to support sustained demand and long-term growth.
How Does the Zacks Consensus Estimate Compare for RTX & GD?
The Zacks Consensus Estimate for RTX’s 2026 sales and earnings per share (EPS) implies an improvement of 8.5% and 19.2%, respectively, from the year-ago quarter’s reported figures. RTX’s EPS estimates for 2026 and 2027 have moved north over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GD’s 2026 sales and EPS implies an improvement of 6.4% and 9.8%, respectively, from the year-ago quarter’s reported figures. GD’s EPS estimates for 2026 and 2027 have moved north over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: RTX vs. GD
In the past year, RTX has outperformed GD. While RTX’s shares surged 6.5%, GD declined 1.3%.
Image Source: Zacks Investment Research
RTX’s Valuation More Attractive Than GD
GD is trading at a forward earnings multiple (P/E F12M) of 19.09, below RTX’s forward earnings multiple of 24.21.
Image Source: Zacks Investment Research
Final Call
While both RTX and General Dynamics benefit from rising defense budgets and diversified business portfolios, RTX appears better positioned due to its stronger stock price performance and better projected sales and earnings growth. RTX’s diversified portfolio across defense, commercial aerospace and space, supported by strategic investments in manufacturing capacity, next-generation engine development and recent defense contract wins, strengthens its long-term growth prospects.
Although General Dynamics benefits from a strong backlog, rising demand for naval vessels and combat vehicles, and expanding government IT services, RTX’s stronger growth outlook and upward revisions to its earnings estimates make it a more compelling investment choice. Both companies are positioned to benefit from sustained defense spending and military modernization programs, but RTX’s superior stock performance and growth prospects give it an edge for investors seeking opportunities in the defense and aerospace sector.
RTX carries a Zacks Rank #2 (Buy) and General Dynamics currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.