Rocket Lab (NASDAQ:RKLB – Get Free Report) and RTX (NYSE:RTX – Get Free Report) are both large-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.
Valuation & Earnings
This table compares Rocket Lab and RTX”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rocket Lab | $601.80 million | 69.49 | -$198.21 million | ($0.27) | -258.85 |
| RTX | $88.60 billion | 2.96 | $6.73 billion | $5.68 | 34.23 |
Analyst Recommendations
This is a summary of current recommendations for Rocket Lab and RTX, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rocket Lab | 1 | 5 | 14 | 4 | 2.88 |
| RTX | 1 | 5 | 14 | 1 | 2.71 |
Rocket Lab presently has a consensus price target of $107.32, indicating a potential upside of 53.55%. RTX has a consensus price target of $228.59, indicating a potential upside of 17.57%. Given Rocket Lab’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Rocket Lab is more favorable than RTX.
Insider & Institutional Ownership
71.8% of Rocket Lab shares are held by institutional investors. Comparatively, 86.5% of RTX shares are held by institutional investors. 8.4% of Rocket Lab shares are held by insiders. Comparatively, 0.1% of RTX shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Rocket Lab and RTX’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rocket Lab | -21.51% | -6.48% | -4.92% |
| RTX | 8.28% | 13.99% | 5.51% |
Volatility and Risk
Rocket Lab has a beta of 2.6, indicating that its share price is 160% more volatile than the S&P 500. Comparatively, RTX has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.
Summary
RTX beats Rocket Lab on 8 of the 14 factors compared between the two stocks.
About Rocket Lab
Rocket Lab USA, Inc., a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets. It also designs, manufactures, and sells Electron, a reusable orbital-class small rocket; and the Photon satellite platforms, as well as developing the Neutron 8-ton payload class launch vehicle; conducts remote launch activities; and designs and manufactures a range of components and subsystems for the Photon family of spacecraft and broader merchant spacecraft components. The company serves commercial, aerospace prime contractors, and government customers. Rocket Lab USA, Inc. was founded in 2006 and is headquartered in Long Beach, California.
About RTX
RTX Corporation, an aerospace and defense company, provides systems and services for the commercial, military, and government customers in the United States and internationally. It operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems segment offers aerospace and defense products, and aftermarket service solutions for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations. This segment also designs, produces, and supports cabin interior, including oxygen systems, food and beverage preparation, storage and galley systems, and lavatory and wastewater management systems; battlespace, test and training range systems, crew escape systems, and simulation and training solutions; information management services; and aftermarket services that include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services. Its Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units. The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for U.S., foreign government, and commercial customers. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.
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