WallStSmart

Raytheon Technologies Corp (RTX)vsUnited Parcel Service Inc (UPS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Raytheon Technologies Corp generates 2% more annual revenue ($90.37B vs $88.32B). RTX leads profitability with a 8.0% profit margin vs 5.9%. UPS appears more attractively valued with a PEG of 1.59. RTX earns a higher WallStSmart Score of 59/100 (C).

RTX

Buy

59

out of 100

Grade: C

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

UPS

Hold

47

out of 100

Grade: D+

Growth: 2.0Profit: 6.5Value: 7.3Quality: 5.0
Piotroski: 3/9Altman Z: 2.21
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RTXSignificantly Overvalued (-52.1%)

Margin of Safety

-52.1%

Fair Value

$115.75

Current Price

$172.79

$57.04 premium

UndervaluedFair: $115.75Overvalued
UPSUndervalued (+35.9%)

Margin of Safety

+35.9%

Fair Value

$187.24

Current Price

$106.61

$80.63 discount

UndervaluedFair: $187.24Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

UPS4 strengths · Avg: 8.8/10
Return on EquityProfitability
33.4%10/10

Every $100 of equity generates 33 in profit

Market CapQuality
$90.58B9/10

Large-cap with strong market position

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.59B8/10

Generating 2.6B in free cash flow

Areas to Watch

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

UPS4 concerns · Avg: 3.3/10
PEG RatioValuation
1.594/10

Expensive relative to growth rate

Profit MarginProfitability
5.9%3/10

5.9% margin — thin

Debt/EquityHealth
1.993/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : RTX

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

Bull Case : UPS

The strongest argument for UPS centers on Return on Equity, Market Cap, P/E Ratio.

Bear Case : RTX

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

Bear Case : UPS

The primary concerns for UPS are PEG Ratio, Profit Margin, Debt/Equity. Debt-to-equity of 1.99 is elevated, increasing financial risk.

Key Dynamics to Monitor

UPS carries more volatility with a beta of 1.10 — expect wider price swings.

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

UPS generates stronger free cash flow (2.6B), providing more financial flexibility.

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

Bottom Line

RTX scores higher overall (59/100 vs 47/100). UPS offers better value entry with a 35.9% margin of safety. 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.

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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United Parcel Service Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · USA

United Parcel Service is an American multinational shipping & receiving and supply chain management company founded in 1907.

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