Critical Survey: RTX (NYSE:RTX) and Redwire (NYSE:RDW)

Redwire (NYSE:RDW) and RTX (NYSE:RTX) are both aerospace companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares Redwire and RTX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redwire	-70.32%	-16.24%	-7.20%
RTX	7.67%	13.28%	5.12%

Volatility and Risk

Redwire has a beta of 2.45, meaning that its share price is 145% more volatile than the S&P 500. Comparatively, RTX has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Institutional & Insider Ownership

8.1% of Redwire shares are owned by institutional investors. Comparatively, 86.5% of RTX shares are owned by institutional investors. 2.6% of Redwire shares are owned by company insiders. Comparatively, 0.2% of RTX shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Redwire and RTX”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redwire	$296.15 million	2.73	-$114.32 million	($3.17)	-1.77
RTX	$85.99 billion	2.71	$4.77 billion	$4.87	35.67

RTX has higher revenue and earnings than Redwire. Redwire is trading at a lower price-to-earnings ratio than RTX, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Redwire and RTX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwire	2	2	6	0	2.40
RTX	0	5	14	2	2.86

Redwire presently has a consensus target price of $14.25, indicating a potential upside of 153.78%. RTX has a consensus target price of $178.47, indicating a potential upside of 2.74%. Given Redwire’s higher probable upside, equities research analysts clearly believe Redwire is more favorable than RTX.

Summary

RTX beats Redwire on 11 of the 15 factors compared between the two stocks.

About Redwire

Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally. The company provides avionics and sensors including star trackers, sun sensors, critical for navigation, and control of spacecraft; camera systems; solar array solutions for spacecraft spanning the spectrum of size, power needs, and orbital location; and strain composite booms, coilable booms, truss structures, telescope baffles, and deployable booms to position sensors or solar arrays away from the spacecraft. It offers software suite that enables digital engineering and generation of high-fidelity, interactive modeling and simulations of individual components, entire spacecraft, and full constellations in a cloud-based environment. In addition, the company microgravity payloads, radio frequency systems, antennas, star trackers, platforms, and in-space manufacturing and biotech facilities. Redwire Corporation is headquartered in Jacksonville, Florida.

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.