WallStSmart

Innovative Solutions and Support (ISSC)vsRaytheon Technologies Corp (RTX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Raytheon Technologies Corp generates 98200% more annual revenue ($88.60B vs $90.14M). ISSC leads profitability with a 21.0% profit margin vs 7.6%. ISSC appears more attractively valued with a PEG of 0.83. ISSC earns a higher WallStSmart Score of 75/100 (B+).

ISSC

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 9.5Value: 10.0Quality: 5.0

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

ISSCUndervalued (+61.7%)

Margin of Safety

+61.7%

Fair Value

$49.61

Current Price

$27.32

$22.29 discount

UndervaluedFair: $49.61Overvalued
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

ISSC5 strengths · Avg: 9.0/10
Return on EquityProfitability
32.5%10/10

Every $100 of equity generates 33 in profit

Revenue GrowthGrowth
36.6%10/10

Revenue surging 36.6% year-over-year

Profit MarginProfitability
21.0%9/10

Keeps 21 of every $100 in revenue as profit

PEG RatioValuation
0.838/10

Growing faster than its price suggests

Operating MarginProfitability
28.9%8/10

Strong operational efficiency at 28.9%

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

ISSC3 concerns · Avg: 3.7/10
P/E RatioValuation
27.0x4/10

Moderate valuation

EPS GrowthGrowth
4.5%4/10

4.5% earnings growth

Market CapQuality
$509.53M3/10

Smaller company, higher risk/reward

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 : ISSC

The strongest argument for ISSC centers on Return on Equity, Revenue Growth, Profit Margin. Profitability is solid with margins at 21.0% and operating margin at 28.9%. Revenue growth of 36.6% demonstrates continued momentum.

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 : ISSC

The primary concerns for ISSC are P/E Ratio, EPS Growth, Market Cap.

Bear Case : RTX

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

Key Dynamics to Monitor

ISSC profiles as a growth stock while RTX is a value play — different risk/reward profiles.

ISSC carries more volatility with a beta of 0.59 — expect wider price swings.

ISSC is growing revenue faster at 36.6% — sustainability is the question.

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

Bottom Line

ISSC scores higher overall (75/100 vs 55/100), backed by strong 21.0% margins and 36.6% revenue growth. Both earn "Strong 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.

Innovative Solutions and Support

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Innovative Solutions and Support, Inc., a systems integrator, designs, develops, manufactures, sells, and provides flight guidance, auto-throttle, and cockpit display systems services in the United States and internationally. The company is headquartered in Exton, Pennsylvania.

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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