WallStSmart

ADT Inc (ADT)vsRaytheon Technologies Corp (RTX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Raytheon Technologies Corp generates 1662% more annual revenue ($90.37B vs $5.13B). ADT leads profitability with a 11.6% profit margin vs 8.0%. ADT trades at a lower P/E of 10.5x. RTX earns a higher WallStSmart Score of 59/100 (C).

ADT

Buy

56

out of 100

Grade: C

Growth: 2.7Profit: 7.5Value: 7.7Quality: 4.3
Piotroski: 7/9Altman Z: 0.46

RTX

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 6.0Value: 3.3Quality: 6.0
Piotroski: 6/9Altman Z: 1.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADTUndervalued (+23.9%)

Margin of Safety

+23.9%

Fair Value

$10.27

Current Price

$7.17

$3.10 discount

UndervaluedFair: $10.27Overvalued
RTXSignificantly Overvalued (-52.1%)

Margin of Safety

-52.1%

Fair Value

$115.75

Current Price

$176.07

$60.32 premium

UndervaluedFair: $115.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADT3 strengths · Avg: 8.7/10
P/E RatioValuation
10.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.1%8/10

Strong operational efficiency at 26.1%

RTX3 strengths · Avg: 8.7/10
Market CapQuality
$237.11B10/10

Mega-cap, among the largest globally

EPS GrowthGrowth
32.5%8/10

Earnings expanding 32.5% YoY

Free Cash FlowQuality
$1.21B8/10

Generating 1.2B in free cash flow

Areas to Watch

ADT3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
1.2%4/10

1.2% revenue growth

EPS GrowthGrowth
-17.0%2/10

Earnings declined 17.0%

Altman Z-ScoreHealth
0.462/10

Distress zone — elevated risk

RTX3 concerns · Avg: 4.0/10
PEG RatioValuation
2.394/10

Expensive relative to growth rate

P/E RatioValuation
33.0x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ADT

The strongest argument for ADT centers on P/E Ratio, Price/Book, Operating Margin.

Bull Case : RTX

The strongest argument for RTX centers on Market Cap, EPS Growth, Free Cash Flow.

Bear Case : ADT

The primary concerns for ADT are Revenue Growth, EPS Growth, Altman Z-Score.

Bear Case : RTX

The primary concerns for RTX are PEG Ratio, P/E Ratio, Altman Z-Score.

Key Dynamics to Monitor

ADT carries more volatility with a beta of 1.05 — expect wider price swings.

RTX is growing revenue faster at 8.7% — sustainability is the question.

RTX generates stronger free cash flow (1.2B), providing more financial flexibility.

Monitor SECURITY & PROTECTION SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RTX scores higher overall (59/100 vs 56/100). ADT offers better value entry with a 23.9% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

ADT Inc

INDUSTRIALS · SECURITY & PROTECTION SERVICES · USA

ADT Inc. provides security, automation and smart home solutions to consumers and business customers in the United States. The company is headquartered in Boca Raton, Florida.

Raytheon Technologies Corp

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.

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