RTX vs. LHX: Which Aerospace Player Holds Stronger Momentum Right Now?

Rising global defense budgets and growing demand for advanced military technologies continue to support growth across the aerospace and defense sector, benefiting players like RTX Corporation RTX and L3Harris Technologies, Inc. LHX. Both companies maintain solid defense portfolios and are well-positioned to benefit from modernization programs and rising geopolitical tensions.

RTX stands out with its diversified portfolio spanning commercial aerospace and defense. Its Pratt & Whitney engines and Collins Aerospace systems benefit from strong commercial aviation demand, while its Raytheon business gains from growing demand for missile systems, air defense solutions, radars and other advanced military technologies.

In contrast, L3Harris maintains a strong presence in defense electronics, communication systems, space technologies and intelligence, surveillance and reconnaissance solutions. Its offerings support military modernization efforts, helping it benefit from growing demand for advanced mission-critical technologies.

With defense spending increasing worldwide, both companies are positioned for continued growth. However, deciding which stock is stronger right now depends on comparing their individual strengths.

Tailwinds for RTX

RTX is benefiting from strong defense demand, notable contract wins and continued technological progress, which are supporting its growth outlook and investor confidence.

In August 2026, Raytheon, an RTX business, secured a $22.9 billion contract to accelerate Tomahawk cruise missile production for the U.S. Navy. The multi-year deal supports the planned production ramp to more than 1,000 missiles annually, strengthening RTX’s revenue visibility.

Collins Aerospace also won a contract worth up to $472 million to provide engineering services for the modernization and sustainment of the CH-47 Chinook fleet. The contract includes avionics upgrades aimed at improving the aircraft’s capabilities and long-term mission readiness.

Moreover, Collins Aerospace completed altitude testing of its next-generation power and cooling system for the F-35, supporting future technology upgrades and the aircraft’s long-term performance.

Tailwinds for LHX

L3Harris is benefiting from strong demand for advanced defense technologies, strategic investments and continued progress across its key programs, which are supporting its growth outlook.

In August 2026, L3Harris was selected by the government of Peru to provide its Viper Shield electronic warfare system for the country’s F-16 Block 70 aircraft program. The system is designed to protect aircraft against enemy radars, missiles and other electronic threats, while strengthening L3Harris’ presence in the global defense market.

The company also opened a new 50,000-square-foot maritime production facility in Providence following a $6 million investment. The facility will design and produce advanced undersea training systems for the U.S. Navy and allied forces.

Moreover, L3Harris completed a hot-fire test of its advanced solid rocket motor for the Missile Defense Agency’s Next Generation Interceptor program, marking further progress in the development of a system designed to strengthen U.S. homeland missile defense.

How Does the Zacks Consensus Estimate Compare for RTX & LHX?

The Zacks Consensus Estimate for RTX’s 2026 sales and earnings per share (EPS) implies an improvement of 8.4% and 14.8%, respectively, from the year-ago reported figures. The stock’s annual bottom-line estimates have moved north over the past 60 days.

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The consensus estimate for LHX’s 2026 sales and EPS implies an improvement of 8.2% and 9.4%, respectively, from the year-ago reported figures. The stock’s 2027 bottom-line estimates have moved south over the past 60 days.

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Stock Price Performance: RTX & LHX

In the past year, RTX has outperformed LHX. While RTX’s shares surged 31.2%, LHX declined 5.3%.

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Valuation for RTX & LHX

LHX is trading at a forward earnings multiple (P/E F12M) of 20.35, below RTX’s forward earnings multiple of 27.63.

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RTX & LHX’s ROIC

RTX’s Return on Invested Capital (ROIC) stands at 6.33% compared with 5.14% for L3Harris. This indicates that RTX currently has a slight advantage in capital efficiency, highlighting its stronger ability to generate returns from the capital invested in its business.

Final Call

Both RTX and L3Harris are well-positioned to benefit from rising defense spending and growing demand for advanced military technologies. However, RTX offers a more diversified business mix with exposure to both commercial aerospace and defense.

RTX also has stronger earnings growth expectations, better recent stock performance and a slightly higher ROIC than L3Harris.

RTX currently carries a Zacks Rank #2 (Buy), while LHX carries a Zacks Rank #3 (Hold). Given RTX’s diversified portfolio, strong growth outlook and better momentum, it stands out as the stronger choice right now.

You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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