HON vs RTX Stock Comparison: AI Score, Valuation, Performance and Upside
Honeywell and RTX both operate diversified aerospace-adjacent businesses, but Honeywell spans building automation and industrial technology alongside aerospace, while RTX is more concentrated in commercial jet engines, aerostructures, and defense missile systems.
Honeywell offers diversified industrial technology exposure alongside aerospace, including a planned portfolio separation that could unlock segment value, while RTX offers more concentrated commercial aerospace and defense missile systems exposure. Consider whether you prefer Honeywell's broader industrial diversification or RTX's aerospace-and-defense concentration.
HON holds the edge across 3 of 5 key metrics in this comparison. RTX has delivered stronger 1-year price return (+11.60% vs +3.61%), though HON has the better forward P/E setup (21.74x vs 26.95x for RTX). On fundamentals, RTX is growing revenue faster (14.50%), while HON maintains the higher operating margin (20.25%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for HON (+21.46%) than for RTX (+10.92%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want diversified exposure across aerospace, building automation, and industrial technology segments
- Believe planned portfolio separation initiatives could unlock additional shareholder value over time
- Value exposure to sustainability and efficiency-driven building automation capital spending
- Are comfortable with execution complexity tied to ongoing corporate restructuring
- Believe commercial aerospace engine aftermarket demand will continue recovering as air travel grows
- Want exposure to missile systems and defense electronics benefiting from elevated global defense spending
- Are comfortable with near-term margin pressure from Pratt & Whitney engine remediation costs
- Prefer a more concentrated aerospace-and-defense business over a broader industrial conglomerate
| Metric | HON | RTX |
|---|---|---|
| AI scorei | 42.9 | 54.0 |
| AI ranki | #883 | #307 |
| Latest closei | $222.14 | $199.40 |
| 1M returni | +5.72% | +6.67% |
| 3M returni | -8.17% | -6.99% |
| 6M returni | +3.64% | +13.25% |
| 1Y returni | +3.61% | +11.60% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | HON | RTX |
|---|---|---|
| 1Y ago | $10.43K (+4.3%) started 2025-10-29 | $11.31K (+13.1%) started 2025-10-29 |
| 5Y ago | $11.85K (+18.5%) started 2021-11-01 | $26.68K (+166.8%) started 2021-11-01 |
| 10Y ago | $30.83K (+208.3%) started 2016-10-31 | $47.59K (+375.9%) started 2016-10-31 |
Hypothetical — past performance does not guarantee future results.
| Metric | HON | RTX |
|---|---|---|
| Market capi | $68.91B | $285.33B |
| Trailing P/Ei | 8.36 | 37.34 |
| Forward P/Ei | 21.74 | 26.95 |
| Price/Salesi | 3.75 | 2.27 |
| EV/Revenuei | 2.50 | 3.40 |
| Analyst targeti | $264.09 | $234.82 |
| Target upsidei | +21.46% | +10.92% |
| Metric | HON | RTX |
|---|---|---|
| Revenue growthi | 4.30% | 14.50% |
| Earnings growthi | 263.90% | 28.70% |
| EPS growthi | +263.90% | +28.70% |
| FCF margini | +6.86% | +10.57% |
| Operating margini | 20.25% | 12.70% |
| Profit margini | 21.58% | 8.28% |
| ROIC proxyi | 46.58% | 12.27% |
| Return on equityi | 46.58% | 12.27% |
| Dividend yieldi | 1.29% | 1.38% |
| Payout ratioi | 38.87% | 45.85% |
| Dividend growth streaki | No increase yet | No increase yet |
| Betai | 0.92 | 0.29 |
| Debt/equityi | 185.37 | 57.02 |
| Current ratioi | 1.21 | 1.01 |
| Quick ratioi | 0.76 | 0.65 |
Over the past year, HON and RTX have moved moderately in the same direction (correlation of 0.41), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | HON | RTX |
|---|---|---|---|
| 1Y | Growthi | +4.34% | +13.06% |
| CAGRi | +4.35% | +13.08% | |
| Volatilityi | 25.96% | 25.17% | |
| Sharpe ratioi | 0.12 | 0.44 | |
| Sortino ratioi | 0.17 | 0.66 | |
| Max drawdowni | 19.06% | 20.06% | |
| Current drawdowni | 10.71% | 11.57% | |
| Avg drawdowni | 8.42% | 7.59% | |
| Ulcer Indexi | 9.86% | 9.91% | |
| Max daily dropi | 6.00% | 4.40% | |
| Max wkly dropi | 10.46% | 11.45% | |
| 5Y | Growthi | +9.30% | +144.71% |
| CAGRi | +1.80% | +19.63% | |
| Volatilityi | 22.71% | 24.43% | |
| Sharpe ratioi | -0.01 | 0.68 | |
| Sortino ratioi | -0.01 | 0.98 | |
| Max drawdowni | 25.21% | 32.84% | |
| Current drawdowni | 10.71% | 11.57% | |
| Avg drawdowni | 9.99% | 7.32% | |
| Ulcer Indexi | 11.42% | 10.10% | |
| Max daily dropi | 7.62% | 10.22% | |
| Max wkly dropi | 14.33% | 12.34% | |
| 10Y | Growthi | +153.15% | +280.04% |
| CAGRi | +9.74% | +14.29% | |
| Volatilityi | 23.96% | 28.02% | |
| Sharpe ratioi | 0.32 | 0.46 | |
| Sortino ratioi | 0.46 | 0.66 | |
| Max drawdowni | 43.01% | 51.98% | |
| Current drawdowni | 10.71% | 11.57% | |
| Avg drawdowni | 8.39% | 9.52% | |
| Ulcer Indexi | 10.81% | 14.02% | |
| Max daily dropi | 12.09% | 14.48% | |
| Max wkly dropi | 24.70% | 26.15% |
| Category | HON | RTX |
|---|---|---|
| Company | Honeywell International Inc. | RTX Corporation |
| Sector | Industrials | Industrials |
| Industry | Conglomerates | Aerospace & Defense |
| Core business | A diversified technology and manufacturing company operating across aerospace technologies, building automation, energy and sustainability solutions, and industrial automation segments serving commercial, industrial, and government customers. | A global aerospace and defense company operating through Collins Aerospace, Pratt & Whitney engine manufacturing, and Raytheon missile systems and defense electronics segments. |
| Investor focus | Aerospace segment recovery and margins, building automation software growth, and progress on planned portfolio separation initiatives. | Pratt & Whitney engine aftermarket recovery progress, commercial aerospace demand trends, and defense segment backlog growth. |
- Diversified segment structure spans aerospace, building technologies, and industrial automation, balancing multiple end markets
- Aerospace segment benefits from both commercial aviation aftermarket demand and defense-related programs
- Building automation and energy solutions businesses provide exposure to sustainability and efficiency-driven capital spending
- Diversified structure spans commercial aerospace components, jet engines, and defense missile and electronics systems
- Pratt & Whitney and Collins Aerospace stand to benefit from continued commercial aviation traffic and aftermarket service recovery
- Raytheon missile systems and defense electronics segment benefits from elevated global defense spending
- Portfolio separation and restructuring initiatives introduce execution complexity and near-term uncertainty
- Industrial automation and building technologies segments remain exposed to broader capital spending cycles
- Complex multi-segment structure can make it harder for investors to cleanly value individual business lines
- Pratt & Whitney engine durability issues have required inspections and remediation weighing on near-term costs and margins
- Commercial aerospace exposure ties results to airline capital spending and aircraft production schedules
- Large, complex defense and aerospace programs carry execution and cost overrun risk
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