RTX (Raytheon Technologies Corp) vs S&P 500 Comparison

RTX

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

RTX

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

RTX

S&P 500

Add Stock

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

S&P 500

RTX

0R2N

AIR

SAF

Add Stock

1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

Raytheon Technologies Corp
Glance View

Economic Moat

Wide

Market Cap

179.9B USD

Industry

Aerospace & Defense

In the bustling realm of aerospace and defense, Raytheon Technologies Corp. emerges as a formidable titan, sculpting the future of aviation and security. Born in 2020 from the merger of Raytheon Company and United Technologies Corporation, the company's roots dig deep into innovation, spanning decades of engineering prowess. Its operations are carefully categorized into four robust segments: Collins Aerospace, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense. Each segment functions akin to the gears of a finely tuned machine, collectively commandeering a monumental $64 billion revenue ship. With Collins Aerospace, Raytheon focuses on advanced avionics, interiors, and flight control systems, ensuring the skies are not just traversed, but mastered. Pratt & Whitney contributes with state-of-the-art engine technologies, propelling both commercial and military aircraft toward unprecedented performance benchmarks. Meanwhile, Raytheon Intelligence & Space dedicates its energies towards satellite systems, cybersecurity, and high-tech radars, granting eyes and ears that pierce the veil of uncertainty and enhance global defense strategies. Raytheon Missiles & Defense adds muscle to the synergistic ensemble, creating sophisticated weapon systems and air defense solutions to counter evolving global threats. This blend of cutting-edge aerospace technology and advanced defense solutions positions Raytheon Technologies at the forefront of industrial symbiosis. By capitalizing on long-standing government contracts, strategic partnerships, and a continuous stream of innovations, Raytheon secures its forte in the market, building dreams not just of flight, but of fortified global security.

View RTX Analysis

RTX Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

	Johnson & Johnson NYSE:JNJ	153.08 USD -0.07%
	Berkshire Hathaway Inc NYSE:BRK.A	757 990.915 USD -0.45%
	Bank of America Corp NYSE:BAC	43.505 USD 0.59%
	Mastercard Inc NYSE:MA	572.285 USD 0.48%
	UnitedHealth Group Inc NYSE:UNH	296.64 USD -2.09%
	Exxon Mobil Corp NYSE:XOM	103.295 USD -0.35%

	Franklin Covey Co NYSE:FC	23.42 USD 2.14%
	Mohawk Industries Inc NYSE:MHK	102.13 USD -0.34%
	Ardmore Shipping Corp NYSE:ASC	9.645 USD -4.98%
	ASGN Inc NYSE:ASGN	54.36 USD 0.24%
	Skyworks Solutions Inc NASDAQ:SWKS	71.085 USD -0.37%
	Weatherford International PLC NASDAQ:WFRD	45.9897 USD 1.17%

	Johnson & Johnson NYSE:JNJ	153.08 USD -0.07%
	Bank of America Corp NYSE:BAC	43.505 USD 0.59%
	Mastercard Inc NYSE:MA	572.285 USD 0.48%
	Salesforce Inc NYSE:CRM	285.5 USD 1.14%
	Abbvie Inc NYSE:ABBV	182.83 USD 0.57%
	Home Depot Inc NYSE:HD	367.375 USD -0.93%

	Arista Networks Inc NYSE:ANET	93.1888 USD 0.82%
	Visa Inc NYSE:V	359.41 USD 0.31%
	Texas Pacific Land Corp NYSE:TPL	1 284.62 USD -5.24%
	KLA Corp NASDAQ:KLAC	775.17 USD -0.48%
	Manhattan Associates Inc NASDAQ:MANH	188.325 USD 0.19%
	Monolithic Power Systems Inc NASDAQ:MPWR	678.45 USD -0.03%

	ServiceNow Inc NYSE:NOW	1 023.535 USD 0.86%
	Spotify Technology SA NYSE:SPOT	640.03 USD -0.46%
	EOG Resources Inc NYSE:EOG	111.21 USD -0.15%
	Monster Beverage Corp NASDAQ:MNST	63.0846 USD -0.02%
	Copart Inc NASDAQ:CPRT	60.6 USD -0.8%
	Applied Materials Inc NASDAQ:AMAT	161.965 USD -0.16%

RTX

vs

S&P 500

Stocks Performance
RTX vs S&P 500

Performance Gap
RTX vs S&P 500

Performance By Year
RTX vs S&P 500

Competitors Performance
Raytheon Technologies Corp vs Peers

Raytheon Technologies Corp
Glance View

Company

Help

Tools

Stocks

US	RTX Corp LSE:0R2N	Add
US	Boeing Co NYSE:BA	Add
NL	Airbus SE PAR:AIR	Add
FR	Safran SA PAR:SAF	Add
US	Lockheed Martin Corp NYSE:LMT	Add
UK	Rolls-Royce Holdings PLC LSE:RR	Add
DE	Rheinmetall AG XETRA:RHM	Add
US	TransDigm Group Inc NYSE:TDG	Add
UK	BAE Systems PLC LSE:BA	Add
US	General Dynamics Corp NYSE:GD	Add

US	RTX Corp LSE:0R2N	Select
US	Boeing Co NYSE:BA	Select
NL	Airbus SE PAR:AIR	Select
FR	Safran SA PAR:SAF	Select
US	Lockheed Martin Corp NYSE:LMT	Select
UK	Rolls-Royce Holdings PLC LSE:RR	Select
DE	Rheinmetall AG XETRA:RHM	Select
US	TransDigm Group Inc NYSE:TDG	Select
UK	BAE Systems PLC LSE:BA	Select
US	General Dynamics Corp NYSE:GD	Select

UK	E	Eight Capital Partners PLC F:ECS	Add
CA		Australian Goldfields Ltd OTC:GRXXF	Add
US	G	GE Vernova LLC NYSE:GEV	Add
IN	S	SAB Industries Ltd BSE:539112	Add
US	C	China Industrial Group Inc OTC:CIND	Add
NL	N	Nepi Rockcastle NV JSE:NRP	Add
US	C	CoreWeave Inc NASDAQ:CRWV	Add
US		Schlumberger NV NYSE:SLB	Add
US	B	Baker Hughes Co NASDAQ:BKR	Add
ID		Amman Mineral Internasional Tbk PT IDX:AMMN	Add

RTX vs S&P 500

Stocks Performance RTX vs S&P 500

Performance Gap RTX vs S&P 500

Performance By Year RTX vs S&P 500

Competitors Performance Raytheon Technologies Corp vs Peers

Raytheon Technologies Corp Glance View

Company

Help

Tools

Stocks

RTX

vs

S&P 500

Stocks Performance
RTX vs S&P 500

Performance Gap
RTX vs S&P 500

Performance By Year
RTX vs S&P 500

Competitors Performance
Raytheon Technologies Corp vs Peers

Raytheon Technologies Corp
Glance View