LHX vs RTX Stock Comparison: AI Score, Valuation, Performance and Upside
L3Harris and RTX are both defense technology companies, but at different scales and portfolio composition. RTX is much larger with significant commercial aerospace exposure (Collins, Pratt & Whitney) alongside Raytheon's missiles. L3Harris is purely defense-focused on electronics, communications, and ISR. RTX's scale and NATO missile demand are strong; L3Harris offers pure-play defense electronics exposure.
LHX vs RTX is a focused defense electronics specialist in communications, ISR, and EW (L3Harris) versus a large-scale diversified aerospace and defense conglomerate with commercial aviation and premier missile systems (RTX) — RTX's scale and NATO missile demand are compelling; L3Harris offers pure-play defense electronics at a smaller scale.
LHX holds the edge across 3 of 5 key metrics in this comparison. RTX has delivered stronger 1-year price return (+25.00% vs +17.52%), though LHX trades at the lower forward P/E (22.58x vs 24.21x). On fundamentals, LHX is growing revenue faster (190.00%), while RTX maintains the higher operating margin (13.18%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for LHX (+24.09%) than for RTX (+17.54%).
- →prefer a focused defense electronics company with tactical communications, ISR, and electronic warfare as core competencies
- →value L3Harris's merger synergy execution improving operating margins in defense electronics
- →want mid-size defense electronics exposure without commercial aerospace cyclicality tied to airline travel volume
- →are comfortable with smaller scale versus RTX and competition from larger defense primes in electronic warfare
- →prefer the large-scale diversified aerospace and defense company with Patriot and AMRAAM demand driven by NATO rearmament
- →value commercial aerospace exposure through Collins avionics aftermarket and Pratt & Whitney engine services as diversification from defense cycles
- →want defense exposure to the world's most in-demand air defense and precision strike systems with NATO rearmament backlog
- →are comfortable with Pratt & Whitney GTF engine remediation costs and commercial aerospace recovery timeline dependencies
| Metric | LHX | RTX |
|---|---|---|
| AI score | 60.0 | 52.0 |
| AI rank | #163 | #349 |
| Latest close | $294.82 | $185.60 |
| 1M return | -4.33% | +6.37% |
| 6M return | +5.78% | +4.74% |
| 1Y return | +17.52% | +25.00% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | LHX | RTX |
|---|---|---|
| 1Y ago | $11.85K (+18.5%) started 2025-06-18 | $12.72K (+27.2%) started 2025-06-18 |
| 5Y ago | $15.53K (+55.3%) started 2021-06-21 | $25.3K (+153.0%) started 2021-06-21 |
| 10Y ago | $50.23K (+402.3%) started 2016-06-20 | $45.11K (+351.1%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
| Metric | LHX | RTX |
|---|---|---|
| Market cap | $57.34B | $247.16B |
| Trailing P/E | 33.46 | 34.50 |
| Forward P/E | 22.58 | 24.21 |
| Price/Sales | N/A | 2.27 |
| EV/Revenue | 5.84 | 3.11 |
| Analyst target | $381.95 | $215.73 |
| Target upside | +24.09% | +17.54% |
| Metric | LHX | RTX |
|---|---|---|
| Revenue growth | 190.00% | 8.70% |
| Earnings growth | -6.10% | 32.50% |
| EPS growth | -6.10% | +32.50% |
| FCF margin | +21.21% | +8.00% |
| Operating margin | 9.73% | 13.18% |
| Profit margin | 10.37% | 8.03% |
| ROIC proxy | 8.19% | 11.57% |
| Return on equity | 8.19% | 11.57% |
| Dividend yield | 1.62% | 1.51% |
| Beta | 0.75 | 0.31 |
| Debt/equity | 34.57 | 57.23 |
| Current ratio | 1.19 | 1.02 |
| Quick ratio | 0.84 | 0.65 |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | LHX | RTX |
|---|---|---|---|
| 1Y | Growth | +18.48% | +27.24% |
| CAGR | +18.51% | +27.28% | |
| Sharpe ratio | 0.63 | 0.93 | |
| Max drawdown | 22.10% | 19.32% | |
| Max daily drop | 5.86% | 4.40% | |
| Max wkly drop | 9.37% | 11.45% | |
| 5Y | Growth | +43.18% | +130.58% |
| CAGR | +7.45% | +18.22% | |
| Sharpe ratio | 0.23 | 0.63 | |
| Max drawdown | 38.16% | 32.84% | |
| Max daily drop | 6.32% | 10.22% | |
| Max wkly drop | 9.38% | 12.34% | |
| 10Y | Growth | +318.83% | +257.64% |
| CAGR | +15.41% | +13.60% | |
| Sharpe ratio | 0.51 | 0.44 | |
| Max drawdown | 38.16% | 51.98% | |
| Max daily drop | 14.30% | 14.48% | |
| Max wkly drop | 18.04% | 26.15% |
| Category | LHX | RTX |
|---|---|---|
| Company | L3Harris Technologies, Inc. | RTX Corporation |
| Sector | Industrials | Industrials |
| Industry | N/A | Aerospace & Defense |
| Core business | L3Harris Technologies (formed from the 2019 merger of L3 Technologies and Harris Corporation) is a leading defense electronics company specializing in communications, ISR, avionics, and electronic warfare. Its divisions serve the US military with tactical radio systems, airborne sensor pods, electronic warfare systems, satellite communications, night vision devices, and coastal surveillance. | RTX (formed from United Technologies and Raytheon merger in 2020) is one of the largest aerospace and defense companies globally. Segments: Collins Aerospace (avionics, interiors, aerostructures), Pratt & Whitney (jet engines for commercial and military aircraft), and Raytheon (missiles, air defense systems, sensors, cybersecurity). RTX has significant commercial aerospace exposure alongside the Raytheon defense business. |
| Investor focus | Investors track segment revenue growth, margin improvement from merger synergies and portfolio optimization, and contract wins for tactical communication systems, ISR, and electronic warfare. | Investors track Collins Aerospace commercial aftermarket, Pratt & Whitney GTF engine delivery and powder metal disc remediation costs, Raytheon missile backlog (Patriot, AIM-120), and overall margin recovery. |
- →Leading tactical radio communications provider to US forces — critical battlefield communications requiring continuous upgrade cycles
- →Electronic warfare systems are an increasingly important defense capability as adversaries develop advanced EW countermeasures
- →L3/Harris merger created scale advantages in defense electronics over either company standalone
- →Patriot air defense systems and AIM-120 AMRAAM missiles are in high demand from NATO nations and Ukraine-conflict replenishment
- →Pratt & Whitney and Collins commercial aerospace exposure diversifies earnings from pure defense revenue cycles
- →Raytheon's missile and air defense portfolio directly addresses the highest-priority national security threats in Europe and Indo-Pacific
- →DoD budget prioritization toward China-focused programs may shift spending away from some Middle East-focused ISR and communications programs
- →Competition from Northrop, Raytheon, and BAE Systems in electronic warfare creates ongoing contract award share pressure
- →Portfolio rationalization (selling non-core businesses) can create near-term revenue headwinds
- →Pratt & Whitney GTF engine powder metal disc issue requires significant multi-year inspection and remediation costs
- →Collins commercial aftermarket growth depends on commercial air travel recovery and fleet utilization rates
- →Scale and complexity of the United Technologies/Raytheon merger created prolonged margin pressure during integration
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