WallStSmart

Leonardo DRS, Inc. Common Stock (DRS)vsRaytheon Technologies Corp (RTX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Raytheon Technologies Corp generates 2329% more annual revenue ($88.60B vs $3.65B). DRS leads profitability with a 7.6% profit margin vs 7.6%. RTX trades at a lower P/E of 39.0x. RTX earns a higher WallStSmart Score of 55/100 (C-).

DRS

Hold

45

out of 100

Grade: D+

Growth: 6.7Profit: 5.5Value: 5.7Quality: 6.8
Piotroski: 6/9Altman Z: 1.52

RTX

Buy

55

out of 100

Grade: C-

Growth: 6.0Profit: 5.5Value: 4.7Quality: 7.0
Piotroski: 6/9Altman Z: 1.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRSSignificantly Overvalued (-39.7%)

Margin of Safety

-39.7%

Fair Value

$27.11

Current Price

$46.32

$19.21 premium

UndervaluedFair: $27.11Overvalued
RTXSignificantly Overvalued (-95.4%)

Margin of Safety

-95.4%

Fair Value

$99.80

Current Price

$195.00

$95.20 premium

UndervaluedFair: $99.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRS0 strengths · Avg: 0/10

No standout strengths identified

RTX2 strengths · Avg: 9.0/10
Market CapQuality
$261.12B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$3.19B8/10

Generating 3.2B in free cash flow

Areas to Watch

DRS3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.524/10

Distress zone — elevated risk

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

P/E RatioValuation
42.8x2/10

Premium valuation, high expectations priced in

RTX4 concerns · Avg: 3.3/10
P/E RatioValuation
39.0x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

PEG RatioValuation
2.782/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DRS

DRS has a balanced fundamental profile.

Bull Case : RTX

The strongest argument for RTX centers on Market Cap, Free Cash Flow. Revenue growth of 12.1% demonstrates continued momentum.

Bear Case : DRS

The primary concerns for DRS are Altman Z-Score, Profit Margin, P/E Ratio. A P/E of 42.8x leaves little room for execution misses.

Bear Case : RTX

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

Key Dynamics to Monitor

RTX carries more volatility with a beta of 0.41 — expect wider price swings.

RTX is growing revenue faster at 12.1% — sustainability is the question.

RTX generates stronger free cash flow (3.2B), providing more financial flexibility.

Monitor AEROSPACE & DEFENSE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RTX scores higher overall (55/100 vs 45/100) and 12.1% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Leonardo DRS, Inc. Common Stock

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Leonardo DRS, Inc. (ticker: DRS) is a leading provider of innovative technologies and solutions that bolster national defense and security for military and commercial clients. The company excels in electronic and sensor systems, advanced communication solutions, and robust software development, catering to the needs of the U.S. Department of Defense and allied nations. With a strong commitment to research and development, Leonardo DRS maintains a competitive edge in delivering state-of-the-art products that support diverse operations across land, air, and sea, positioning itself as a crucial partner in an evolving global defense landscape.

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.

Visit Website →

Want to dig deeper into these stocks?