Comparing RTX (NYSE:RTX) & Archer Aviation (NYSE:ACHR)

RTX (NYSE:RTX) and Archer Aviation (NYSE:ACHR) 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, risk, dividends, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and recommmendations for RTX and Archer Aviation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RTX	0	6	14	3	2.87
Archer Aviation	1	2	6	0	2.56

RTX currently has a consensus price target of $186.88, suggesting a potential downside of 6.44%. Archer Aviation has a consensus price target of $12.14, suggesting a potential upside of 36.59%. Given Archer Aviation’s higher possible upside, analysts plainly believe Archer Aviation is more favorable than RTX.

Valuation & Earnings

This table compares RTX and Archer Aviation”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RTX	$80.74 billion	3.32	$4.77 billion	$4.87	41.02
Archer Aviation	N/A	N/A	-$536.80 million	($1.26)	-7.06

RTX has higher revenue and earnings than Archer Aviation. Archer Aviation 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 Archer Aviation’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%
Archer Aviation	N/A	-49.22%	-41.46%

Volatility & Risk

RTX has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Archer Aviation has a beta of 3.1, meaning that its share price is 210% more volatile than the S&P 500.

Institutional & Insider Ownership

86.5% of RTX shares are held by institutional investors. Comparatively, 59.3% of Archer Aviation shares are held by institutional investors. 0.2% of RTX shares are held by insiders. Comparatively, 7.7% of Archer Aviation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

RTX beats Archer Aviation on 11 of the 14 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 Archer Aviation

Archer Aviation Inc., together with its subsidiaries, engages in designs, develops, and operates electric vertical takeoff and landing aircraft for use in urban air mobility. The company was formerly known as Atlas Crest Investment Corp. and changed its name to Archer Aviation Inc. The company is headquartered in San Jose, California.