Head-To-Head Review: VirTra (NASDAQ:VTSI) & RTX (NYSE:RTX)

RTX (NYSE:RTX) and VirTra (NASDAQ:VTSI) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for RTX and VirTra, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RTX	1	5	14	1	2.71
VirTra	1	1	1	0	2.00

RTX currently has a consensus price target of $228.59, suggesting a potential upside of 15.00%. VirTra has a consensus price target of $5.00, suggesting a potential upside of 68.92%. Given VirTra’s higher possible upside, analysts plainly believe VirTra is more favorable than RTX.

Insider and Institutional Ownership

86.5% of RTX shares are owned by institutional investors. Comparatively, 14.7% of VirTra shares are owned by institutional investors. 0.1% of RTX shares are owned by insiders. Comparatively, 3.5% of VirTra shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares RTX and VirTra”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RTX	$88.60 billion	3.02	$6.73 billion	$5.68	34.99
VirTra	$17.50 million	1.91	$260,000.00	($0.26)	-11.38

RTX has higher revenue and earnings than VirTra. VirTra 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 VirTra’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RTX	8.28%	13.99%	5.51%
VirTra	-17.04%	-6.59%	-4.57%

Volatility & Risk

RTX has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, VirTra has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Summary

RTX beats VirTra on 12 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 VirTra

VirTra, Inc. provides use of force training and firearms training simulators for the law enforcement, military, and commercial markets worldwide. Its patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. It offers V-300 simulator, a 300 degree wrap-around screen for simulation training; V-180 simulator, a 180 degree screen for smaller spaces or budgets; V-100, a single-screen based simulator system; V-100 MIL, a single-screen based simulator system; and V-ST PRO, a realistic single screen firearms shooting and skills training simulator. The company also provides Virtual Interactive Coursework Training Academy (V-VICTA), which enables law enforcement agencies to teach, train, test, and sustain departmental training requirements; and Subscription Training Equipment Partnership, a program that allows agencies to utilize its simulator products, accessories, and V-VICTA interactive coursework on a subscription basis. In addition, it offers V-Author software that allows users to create, edit, and train with content specific to agency’s objectives and environments; Simulated Recoil Kits, a range of realistic and reliable simulated recoil kits/weapons; Threat-Fire, a device that applies real-world stress on the trainees during simulation training; and TASER, an OC spray and low-light training devices that interact with its simulators for training. The company sells its simulators and related products through a direct sales force and distribution partners. The company was founded in 1993 and is headquartered in Chandler, Arizona.