Financial Analysis: Moog (NYSE:MOG.B) versus RTX (NYSE:RTX)

Moog (NYSE:MOG.B) and RTX (NYSE:RTX) are both large-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

Moog has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, RTX has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500.

Profitability

This table compares Moog and RTX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Moog	8.73%	17.67%	7.94%
RTX	8.28%	13.99%	5.51%

Insider and Institutional Ownership

8.1% of Moog shares are held by institutional investors. Comparatively, 86.5% of RTX shares are held by institutional investors. 2.4% of Moog shares are held by company insiders. Comparatively, 0.1% of RTX shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Moog and RTX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Moog	0	1	0	0	2.00
RTX	1	5	14	1	2.71

RTX has a consensus target price of $228.06, suggesting a potential upside of 21.75%. Given RTX’s stronger consensus rating and higher possible upside, analysts plainly believe RTX is more favorable than Moog.

Valuation and Earnings

This table compares Moog and RTX”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Moog	$3.86 billion	3.22	$235.03 million	$11.76	33.41
RTX	$88.60 billion	2.85	$6.73 billion	$5.68	32.98

RTX has higher revenue and earnings than Moog. RTX is trading at a lower price-to-earnings ratio than Moog, indicating that it is currently the more affordable of the two stocks.

Dividends

Moog pays an annual dividend of $1.20 per share and has a dividend yield of 0.3%. RTX pays an annual dividend of $2.92 per share and has a dividend yield of 1.6%. Moog pays out 10.2% of its earnings in the form of a dividend. RTX pays out 51.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RTX has raised its dividend for 5 consecutive years. RTX is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

About Moog

Moog Inc. designs, manufactures, and integrates precision motion and fluid controls and systems for original equipment manufacturers and end users in the aerospace, defense, and industrial markets worldwide. The company's Aircrafts Controls segment offers primary and secondary flight controls for military and commercial aircrafts; aftermarket support services; and ground-based navigation aids. Its Space and Defense Controls segment provides controls for satellites, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance, and other defense applications; and gun aiming, stabilization, and automatic ammunition loading for armored combat vehicles. This segment also offers steering tactical and strategic missiles; and designs, builds, and integrates weapon stores management systems for light attack aerial reconnaissance, ground, and sea platforms. The company's Industrial Systems segment provides systems for applications in injection and blow molding machinery, metal forming presses, and heavy industry customers in steel and aluminum production; and supplies solutions for power generation applications, electromechanical motion simulation bases, medical training simulators, and custom test systems and controls. This segment also offers systems and components for applications in oil and gas exploration and production; components for wind turbine applications; and components and systems for diagnostic imaging CT scan medical equipment, sleep apnea equipment, oxygen concentrators, infusion therapy, and enteral clinical nutrition. The company was founded in 1951 and is headquartered in East Aurora, New York.

About RTX

RTX Corporation, an aerospace and defense company, provides systems and services for the commercial, military, and government customers in the United States and internationally. It operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems segment offers aerospace and defense products, and aftermarket service solutions for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations. This segment also designs, produces, and supports cabin interior, including oxygen systems, food and beverage preparation, storage and galley systems, and lavatory and wastewater management systems; battlespace, test and training range systems, crew escape systems, and simulation and training solutions; information management services; and aftermarket services that include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services. Its Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units. The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for U.S., foreign government, and commercial customers. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.