Over the past three months, the Aerospace & Defense industry has been one of the top growth leaders in the S&P 500 index, up +7.1%.
Some of the largest companies in this industry (by market capitalization) are: RTX ($171.8B), an aerospace and defense company formed as a result of the merger of United Technologies and Raytheon, and Boeing ($146.9B), an aerospace company operating in 65 countries and employing 165 thousand people.
According to the latest quarterly reporting data, we analyzed each company’s profitability, strength, and efficiency criteria according to the methodology of Stanford University professor Joseph Piotroski.
As you can see, in terms of fundamental data, RTX is showing stronger results. RTX outperforms its competitor Boeing in terms of profitability and efficiency, but Boeing is superior in terms of sustainability.
Over the past 3 months, RTX shares have risen by +0.5% and Boeing by +7.3% (the S&P 500 index is down -6.0%). Both companies showed better results compared to the index.
So, the winner in this issue is RTX. Although Boeing’s shares demonstrate better profitability and prevail in terms of liquidity, RTX looks healthier in terms of change in return on assets, change in return on assets, operating cash flow, operating margin, and asset turnover.
* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
