RTX (NYSE:RTX – Get Free Report) and Huntington Ingalls Industries (NYSE:HII – Get Free Report) are both large-cap aerospace companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.
Insider and Institutional Ownership
86.5% of RTX shares are held by institutional investors. Comparatively, 90.5% of Huntington Ingalls Industries shares are held by institutional investors. 0.2% of RTX shares are held by company insiders. Comparatively, 0.7% of Huntington Ingalls Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for RTX and Huntington Ingalls Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RTX | 0 | 5 | 13 | 3 | 2.90 |
| Huntington Ingalls Industries | 1 | 5 | 3 | 0 | 2.22 |
Earnings & Valuation
This table compares RTX and Huntington Ingalls Industries”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RTX | $80.74 billion | 2.66 | $4.77 billion | $4.55 | 35.26 |
| Huntington Ingalls Industries | $11.54 billion | 0.92 | $550.00 million | $13.36 | 20.26 |
RTX has higher revenue and earnings than Huntington Ingalls Industries. Huntington Ingalls Industries is trading at a lower price-to-earnings ratio than RTX, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
RTX has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Huntington Ingalls Industries has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.
Profitability
This table compares RTX and Huntington Ingalls Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RTX | 7.35% | 12.89% | 4.93% |
| Huntington Ingalls Industries | 4.54% | 11.34% | 4.43% |
Dividends
RTX pays an annual dividend of $2.72 per share and has a dividend yield of 1.7%. Huntington Ingalls Industries pays an annual dividend of $5.40 per share and has a dividend yield of 2.0%. RTX pays out 59.8% of its earnings in the form of a dividend. Huntington Ingalls Industries pays out 40.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RTX has raised its dividend for 5 consecutive years and Huntington Ingalls Industries has raised its dividend for 13 consecutive years. Huntington Ingalls Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
RTX beats Huntington Ingalls Industries on 12 of the 18 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 Huntington Ingalls Industries
Huntington Ingalls Industries, Inc. designs, builds, overhauls, and repairs military ships in the United States. It operates through three segments: Ingalls, Newport News, and Mission Technologies. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships; expeditionary warfare ships; surface combatants; and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services of nuclear-powered aircraft carriers. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in-service the U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, the company provides C5ISR systems and operations; application of artificial intelligence and machine learning to battlefield decisions; defensive and offensive cyberspace strategies and electronic warfare; live, virtual, and constructive solutions; unmanned, autonomous systems; and fleet sustainment; and critical nuclear operations. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.
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