WallStSmart

Rentokil Initial PLC (RTO)vsRaytheon Technologies Corp (RTX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Raytheon Technologies Corp generates 1208% more annual revenue ($90.37B vs $6.91B). RTX leads profitability with a 8.0% profit margin vs 6.8%. RTO appears more attractively valued with a PEG of 0.99. RTX earns a higher WallStSmart Score of 59/100 (C).

RTO

Buy

57

out of 100

Grade: C

Growth: 8.7Profit: 5.0Value: 4.7Quality: 5.5
Piotroski: 5/9Altman Z: 2.29

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

RTOOvervalued (-6.2%)

Margin of Safety

-6.2%

Fair Value

$30.60

Current Price

$33.65

$3.05 premium

UndervaluedFair: $30.60Overvalued
RTXSignificantly Overvalued (-51.9%)

Margin of Safety

-51.9%

Fair Value

$116.35

Current Price

$176.09

$59.74 premium

UndervaluedFair: $116.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RTO2 strengths · Avg: 9.0/10
EPS GrowthGrowth
95.2%10/10

Earnings expanding 95.2% YoY

PEG RatioValuation
0.998/10

Growing faster than its price suggests

RTX3 strengths · Avg: 8.7/10
Market CapQuality
$238.07B10/10

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

RTO4 concerns · Avg: 2.8/10
Return on EquityProfitability
5.4%3/10

ROE of 5.4% — below average capital efficiency

Profit MarginProfitability
6.8%3/10

6.8% margin — thin

Debt/EquityHealth
1.123/10

Elevated debt levels

P/E RatioValuation
59.0x2/10

Premium valuation, high expectations priced in

RTX3 concerns · Avg: 4.0/10
PEG RatioValuation
2.434/10

Expensive relative to growth rate

P/E RatioValuation
33.1x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : RTO

The strongest argument for RTO centers on EPS Growth, PEG Ratio. PEG of 0.99 suggests the stock is reasonably priced for its growth.

Bull Case : RTX

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

Bear Case : RTO

The primary concerns for RTO are Return on Equity, Profit Margin, Debt/Equity. A P/E of 59.0x leaves little room for execution misses.

Bear Case : RTX

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

Key Dynamics to Monitor

RTO carries more volatility with a beta of 0.42 — 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 SPECIALTY BUSINESS SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RTX scores higher overall (59/100 vs 57/100). 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.

Rentokil Initial PLC

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

Rentokil Initial plc offers route-based services in North America, the UK, the rest of Europe, Asia, the Pacific and internationally. The company is headquartered in Crawley, the United Kingdom.

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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