DHR vs RTX: Which Is the Better Buy?

Side-by-side comparison of Danaher Corporation and RTX Corporation β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-05-04.
Danaher Corporation Β· Healthcare
$174.04
+13.2% upside to fair value
Grade B
VS
RTX Corporation Β· Industrials
$172.90
-21.3% upside to fair value
Grade D
QuantHub Verdict
DHR has more upside to fair value (+13.2%). RTX trades at a lower forward P/E (32.1x). These are model outputs β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric DHR RTX
Current Price $174.04 $172.90
Fair Value Estimate $197.01 $136.05
Upside to Fair Value +13.2% -21.3%
Market Cap $123.2B $232.8B
Forward P/E 33.4x 32.1x
EV / EBITDA 20.3x 19.2x
Price / Sales 5.0x 2.6x
Price / FCF 23.3x 27.9x
Revenue Growth YoY +3.7% +8.7%
Gross Margin 60.7% 20.2%
Operating Margin 21.0% 10.4%
Return on Equity 7.1% 11.2%
Dividend Yield 0% 0%
FCF Yield 4.3% 3.59%
Analyst Consensus Strong Buy Buy
Investment Thesis
DHR β€” Danaher Corporation
Danaher Corporation is a diversified healthcare company focused on medical diagnostics, life sciences, and biotechnology, generating approximately $24 billion in revenue with a strong recurring revenue base of over 81%. The company benefits from a high gross margin of 60.7% and solid operating margin of 21%, supported by a seasoned management team with a proven capital allocation track record inc…
RTX β€” RTX Corporation
RTX Corporation is a leading aerospace and defense company with a diversified portfolio spanning Pratt & Whitney jet engines, Collins Aerospace avionics, and Raytheon Intelligence & Space defense systems. The company benefits from a strong competitive moat supported by a $271 billion backlog and multi-year contracts, driving consistent revenue growth of 10% in 2025 and 9% in Q1 2026. Earnings gro…
Accumulation Zones
Metric DHR RTX
Zone Low $147.76 $102.04
Zone High $167.46 $115.64
In Buy Zone? No No
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