Reviewing RTX (NYSE:RTX) & Butler National (OTCMKTS:BUKS)

RTX (NYSE:RTX) and Butler National (OTCMKTS:BUKS) are both aerospace companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Volatility & Risk

RTX has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Butler National has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for RTX and Butler National, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RTX	0	5	14	2	2.86
Butler National	0	0	0	0	0.00

RTX presently has a consensus price target of $178.47, suggesting a potential downside of 0.47%. Given RTX’s stronger consensus rating and higher possible upside, research analysts plainly believe RTX is more favorable than Butler National.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RTX	$80.74 billion	2.98	$4.77 billion	$4.87	36.82
Butler National	$83.97 million	2.14	$12.55 million	$0.21	10.71

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RTX	7.67%	13.28%	5.12%
Butler National	16.60%	22.23%	11.27%

Insider & Institutional Ownership

86.5% of RTX shares are owned by institutional investors. Comparatively, 5.0% of Butler National shares are owned by institutional investors. 0.2% of RTX shares are owned by insiders. Comparatively, 17.6% of Butler National shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

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

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.

About Butler National

Butler National Corporation, together with its subsidiaries, designs, engineers, manufactures, sells, integrates, installs, repairs, modifies, overhauls, services, and distributes a portfolio of aerostructures, aircraft components, avionics, accessories, subassemblies, and systems in North America, Europe, the Middle East, Asia, and internationally. It operates through two segments, Aerospace Products and Professional Services. The Aerospace Products segment provides aircraft modifications to business-size aircraft, which include passenger-to-freighter configuration, radar systems, addition of aerial photography capabilities, search and rescue, environmental research, mapping, intelligence surveillance reconnaissance modifications, and stability enhancing modifications for Learjet, Beechcraft, and Cessna aircraft along with other specialized modifications. This segment manufactures, sells, and services electronics for weapon control systems that are used on government aircraft and vehicles; and sells, installs, and repairs aircraft avionics equipment, including airplane radio equipment and flight control systems, as well as troubleshoots and repairs autopilot systems. Its Professional Services segment manages Boot Hill Casino and Resort, a gaming, dining, and entertainment facility in Dodge City, Kansas. The company acquires, refurbishes, and sells airplanes, primarily Learjets; owns properties; and operates a management consulting and administrative services firm that provides business planning and financial coordination to Indian tribes interested in owning and operating casinos. It serves the aviation industry, including owners and operators of private and commercial business and government aircraft and suppliers. Butler National Corporation was incorporated in 1960 and is headquartered in New Century, Kansas.