ETN vs RTX: Which Is the Better Buy?
Side-by-side comparison of Eaton Corporation plc and RTX Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-08-06.
Eaton Corporation plc · Industrials
$447.28
-9.5% upside to fair value
Med Conviction
Grade C+
VS
RTX Corporation · Industrials
$185.60
-25.2% upside to fair value
Grade D
QuantHub Verdict
ETN has more upside to fair value
(-9.5%).
ETN trades at a lower forward P/E
(33.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
ETN |
RTX |
| Current Price |
$447.28 |
$185.60 |
| Fair Value Estimate |
$405.00 |
$138.81 |
| Upside to Fair Value |
-9.5%
|
-25.2%
|
| Market Cap |
$173.7B |
$249.9B |
| Forward P/E |
33.2x
|
34.3x
|
| EV / EBITDA |
30.0x
|
18.3x
|
| Price / Sales |
5.8x
|
2.8x
|
| Price / FCF |
38.6x
|
29.9x
|
| Revenue Growth YoY |
+21.0%
|
+8.7%
|
| Gross Margin |
35.9%
|
20.2%
|
| Operating Margin |
17.7%
|
10.9%
|
| Return on Equity |
18.9%
|
11.2%
|
| Dividend Yield |
0.98% |
0% |
| FCF Yield |
2.59%
|
3.34%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Eaton is a 115-year-old power management company whose Electrical Americas, Electrical Global and Aerospace segments have become a core beneficiary of the same AI data-center, grid modernization and reshoring supercycle driving GE Vernova and Vertiv. Q2 2026 results were record-setting: revenue of $8.5 billion (up 21% year over year, 14% organic), adjusted EPS of $3.15, and segment margins of 23.…
RTX Corporation is a leading aerospace and defense company with a strong competitive moat driven by scale and an installed base in commercial aerospace via Pratt & Whitney and Collins Aerospace, and defense through Raytheon. The company benefits from a large multi-year backlog of approximately $270 billion supporting steady cash flow and mid-single-digit organic growth. Despite solid revenue grow…
Accumulation Zones
| Metric |
ETN |
RTX |
| Zone Low |
$305.00 |
$104.11 |
| Zone High |
$345.00 |
$117.99 |
| In Buy Zone? |
No
|
No
|