HON vs RTX: Which Is the Better Buy?
Side-by-side comparison of Honeywell International Inc. and RTX Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-14.
Honeywell International Inc. · Industrials
$222.25
-5.5% upside to fair value
Grade D
High Quality
VS
RTX Corporation · Industrials
$185.60
-25.2% upside to fair value
Grade D
QuantHub Verdict
HON has more upside to fair value
(-5.5%).
HON trades at a lower forward P/E
(15.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HON |
RTX |
| Current Price |
$222.25 |
$185.60 |
| Fair Value Estimate |
$210.05 |
$138.81 |
| Upside to Fair Value |
-5.5%
|
-25.2%
|
| Market Cap |
$70.4B |
$249.9B |
| Forward P/E |
15.7x
|
34.3x
|
| EV / EBITDA |
13.1x
|
18.3x
|
| Price / Sales |
1.9x
|
2.8x
|
| Price / FCF |
17.1x
|
29.9x
|
| Revenue Growth YoY |
-6.9%
|
+8.7%
|
| Gross Margin |
36.9%
|
20.2%
|
| Operating Margin |
14.9%
|
10.9%
|
| Return on Equity |
23.6%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
5.84%
|
3.34%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Honeywell International Inc. operates as a diversified industrial conglomerate with a strong presence in multiple sectors including aerospace, building technologies, and performance materials. The company demonstrates high business quality with a durable competitive moat supported by strong margins, a 23.6% return on equity, and solid free cash flow generation of $16.78 per share. However, recent…
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 |
HON |
RTX |
| Zone Low |
$157.54 |
$104.11 |
| Zone High |
$178.54 |
$117.99 |
| In Buy Zone? |
No
|
No
|